Performance Improvement Plan

1. Guide to an Effective
Performance Improvement
Plan (PIP)

2. • It is important to manage under performers in a timely &
effective manner. This is one way of ensuring that
corrective/remedial interventions are initiated before it is too
late.
• It is encouraged that the following process be applied in
managing underperformers.
Please refer to:
• Initiating the PIP process
• 9 Essential Steps to En Effective Performance Improvement Plan
Managing ‘Under Performers’

3. • Performance expectations are reflected in
our values & should be clearly outlined &
agreed at the beginning of the review
period.
• The Organisation is committed to
supporting all employees in achieving a
consistently high level of performance.
• If managed well, this should be reflected in
the overall performance of the Organisation.
• Executive will be assessed based on
Balanced Score Card (BSC) and Non-
Executive will be assessed based on ACE
Review Form
• By this token, employees who deliver
excellent performance will be duly
rewarded through our reward process.
• However, those who consistently under-
perform, should also be managed
accordingly.
PIP Guide

4. • It is the joint responsibility of the line
manager and the employee to give and
request honest & regular performance
feedback.
• Besides the two (2) formal performance
reviews (in a calendar year), line
managers are encouraged to provide
feedback & coaching on a regular basis.
• Regular feedback & coaching should
ensure that results are met & remove the
element of surprise at year-end
appraisals.
PIP Guide

5. • Exceeds Expectations : The individual has
exceeded performance expectations.
• Meets Expectations : The individual has
met performance expectations.
• Somewhat Meet: The individual meets
the expectations in the majority of areas
but has not fully met the expectations in
one or more important areas.
• Do not Meet : The individual has
consistently not met performance
expectations.
Definition of Performance Level

6. Employee Performance Matrix –
Performance vs. Competency
0
10
20
30
40
50
60
70
80
90
100
0 0.5 1 1.5 2 2.5 3
Employee Performance Matrix
Employee Name
Competency
ACE Ratings
Performance
BSC
Ratings
HpHc
LpHc
HpLc
LpLc
Managing Performance
- Exposure in team leadership
- Coaching for working in a high
performing organization
Reviewing Performance
- Performance Improvement Plan (PIP)
- Review job fit
- Targeted training
Sustaining Motivation & Enhancing
Development (High Potential
Employees)
-Cross Functional development
-Industry Exposure
-Executive Education
-Mentoring / Coaching roles
Realizing Potential
-Business exposure
-Business training
-Assigning to coach/mentor

7. Red Light (3 + 3 mth plan)
These individuals are NOT driven to
succeed. Investigate reasons for
under-performance, e.g. ‘too big bite’,
too many tasks, skills & knowledge.
Performance coaching required. If no
improvement
Should exit the business within 6
months, they should exit the business
The LpLc Quadrant – Performance Improvement Plan
7
Exit Strategy (3 mth plan – poor attitude)
Individuals in this category should exit
the business within 3 mths
Exit Strategy (3 mth plan – better
attitude)
Investigate & manage the real cause.
Out of depth? Tools needed? Having
personal problems? 3 mth ‘stay of
execution’ to demonstrate ability to
move up on rating
Possible performer (might be worth
salvaging 6 + 3 mth plan )
These individuals might have the ability
to deliver acceptable performance.
Investigate reasons for under-
performance. E.g. clarity of BSC / ACE,
new in role, regular performance
reviews with line manager, adequate
skills and ‘tools’ for the role, afraid to do
it? Performance coaching required

8. INITIATING THE PIP PROCESS

9. Initiating the PIP Process
ACE/BSC
Rating
Conduct Face
to Face
Meeting with
PIP form
Preparation
of Face to
Face Meeting
Conduct Face
to Face
Meeting
PIP Output Monitoring
Period

10. Monitoring PIP

11. Process of Managing Exit of Poor Performer
Employee
ACE/BSC
Rating
Conduct Face
to Face
Meeting with
PIP form
Preparation
of Face to
Face Meeting
Conduct Face
to Face
Meeting
PIP Output Monitoring
Period

12. SUPERVISORS STEP-BY-STEP GUIDE TO
IMPROVE AND
DOCUMENT PERFORMANCE
Performance Improvement Plan (PIP)

13. Generally, substandard employee performance and misconduct are the two most common behaviors that should be
documented and addressed in a performance improvement plan (PIP).
Document Substandard Performance
The first type of behavior is substandard performance. An example of substandard performance behavior is an error-filled
financial report that was submitted to a reporting agency. The report reflects poorly on the Organisation and may result in
a substantial financial impact to the Organisation. Substandard performance is the most challenging performance issue
facing managers because the employee normally has no intention of turning in substandard work. It requires a well
thought-out development plan with a sustained, strategic manager/employee communication and implementation plan
resulting in improvement over a reasonable period of time. In this type of performance-based issue, the employee typically
cannot improve without some form of assistance from a third party.
Document Misconduct
The second type of behavior is misconduct based that impacts performance. Misconduct may be tardiness, poor
attendance, or harassment behavior that results in poor work performance and is violation of a workplace policy. This type
of behavior is more easily corrected. Sometimes, the two types of employee behaviors overlap; nevertheless, both should
be documented and a plan developed to improve the employee’s performance.
The likelihood of success in improving behavior largely depends on how well the supervisor manages the employee’s
improvement plan and how well the nine essential steps are followed. A PIP that follows the nine essential steps will either
result in improved employee performance or a less desirable outcome, further disciplinary action up to and including
termination of employment.
Supervisors Step-by-Step Guide to Improve and
Document Performance
Performance Improvement Plan (PIP)
What performance behaviour should be documented in the PIP?

14. STEP 1 : Prepare for a face to face meeting with the employee
A supervisor should conduct a candid, honest, face-to-face meeting with the employee in a
confidential location that provides little or no disruption. Before the meeting, a supervisor must
do his/her homework by thoroughly investigating the incident, gathering information, researching
HR policies, discussing the matter with superiors and/or HR Relationship Managers, and
developing a plan of action to meet the goal of improving the employee’s performance. It is
recommended that supervisors consult with a HR Relationship Manager prior to meeting with
the employee. Before the meeting, supervisors should prepare for steps 2 through 9 below.
Nine Essential Steps to an Effective
Performance Improvement Plan (PIP)
STEP 2 : Describe the policy violation, infraction, incident or behavior
Describe the policy violation, infraction, incident or behavior and include specifics such as who,
what, when, why, where and how. If it is poor a quality work product or judgment issue,
provide specific examples to the employee. The work product could be an employee’s finished
work assignment or report. During the discussion, the supervisor should focus on the results of
the performance behavior, and not the individual. What are the results of the errors and how
do they impact the workplace? If it is an attendance issue, cite the specific dates and times the
infraction (s) occurred. Don’t use inflammatory, subjective, or vague language such as; “you’re
not a team player,” “incompetent,” or “that was stupid.” If you do, the employee will likely
become defensive and will not be receptive to the real issues. Do address the behavior and
how it impacts the workplace and department. If you have verbally discussed or counseled
with the employee on this issue before, please document the dates and previous incidents.
Make it a point to remind the employee that this is the second or third counseling session
regarding the same or similar performance issue.

15. STEP 3 : Connect the infraction or performance behavior to a policy
In the case of the employee who was tardy numerous times, you may cite the tardiness as a
violation of policy. You should attach a copy of the policy to the documentation. If no policy
violation occurred, discuss the consequences of the infraction or performance issue. For example,
if it is an important report that is filled with calculation errors, the supervisor should document
and discuss the consequences of the poor quality work.
Nine Essential Steps to an Effective
Performance Improvement Plan (PIP)
STEP 4 : Provide a development plan to improve the behavior
Creating a development plan is perhaps the most critical and challenging part of the
documentation process. The key question is what does it take to improve the employee’s
performance or prevent the infraction from recurring? If the issue is substandard performance, a
well-planned development plan is required. If it is a policy violation or isolated incident, a slightly
different approach is taken. If it is a policy violation, there should be documentation to include the
impact of the policy violation within the workplace (department) and the consequence or
punishment for violating the policy. Remember: The punishment should fit the crime. Contact
your HR Relationship Managers to help determine the appropriate disciplinary action as it has
been applied to others for similar infractions or violations of policy. If it is an isolated incident, a
notice should be included to warn the employee of the consequences if the infraction should
occur again. A statement such as, “a similar violation of the policy will result in action being
taken against you up to and including termination” should be included. In addition, set clear
expectations or measurable standards for the employee to comply with in the future. If you are
attempting to correct the misconduct, you should provide specific expectations for the employee
and how the performance is impacting the workplace. If it is a substandard performance issue,
the supervisor should establish measurable standards of performance and/or provide a training or
development plan. As the supervisor, make sure the goals established are reasonable and
attainable. In the case of the substandard report, a supervisor may suggest to the employee that
he/she take the time to proof his/her numbers before submitting any report to the supervisor. Be
as specific about the standard for errors as possible.

16. STEP 5 :Evaluate the employee’s progress on a periodic basis
Measuring and evaluating the employee’s progress the second most critical and challenging
part of the documentation process. Communication between the employee and supervisor is
critical. Periodic and scheduled meetings to review progress are strongly recommended. Most
supervisors fall short on this step because there is no follow up. When the employee is given
feedback, it is an opportunity to reinforce good performance behavior or continue correcting
undesirable performance. If the performance has not improved, it becomes an opportunity to
discuss and correct the performance. In your documentation, establish a time period for you to
follow-up with the employee. Provide a reasonable period of time to allow for improvement and
development. An example statement may include, “the reports submitted will be reviewed
monthly for the next six months.” The goal is to measure progress and improve your performance
(as outlined in step four).
Nine Essential Steps to an Effective
Performance Improvement Plan (PIP)
STEP 6: Notify or warn the employee of consequences
Notify or warn the employee of the consequence of a repeated violation of the policy and/or
provide a time frame for improved performance. In the case of the tardy employee, you may
warn the employee, “If you are late in reporting to work and you do not call in within the
specified time period, personnel actions may be taken against you up to and including
immediate termination.” Always state the consequence of a repeated violation.
Note: In unemployment cases, the lack of warning and notice may have legal and financial
consequences.

17. STEP 7: Acknowledgement and agreement by the employee
Nine Essential Steps to an Effective
Performance Improvement Plan (PIP)
STEP 8: Sign and date the document
Acknowledgement and agreement by the employee. The third most critical and challenging part
of the documentation process is to be assured that the employee accepts the plan of action and
acknowledges the behavior and/or the performance is not acceptable. Ask the employee for input
in the development plan. Employee agreement will greatly enhance success of the PIP. In the case
of the employee coming in late, you may document, “I believe you will agree that not calling in
when you are late is a problem and you must follow the department procedure as explained to
you during your orientation period.” In this step, a communication and understanding technique is
suggested. The supervisor should ask the employee to repeat to the supervisor what has been
covered and what the plan of action will be in the future.
The employee and supervisor sign and date the performance improvement plan (PIP)
document. Document the date the review was conducted with the employee. If the employee
does not agree with the document, allow the employee an opportunity to write on the
document that he/she does not agree and sign. A copy should be provided to the employee
and Human Resources for the employee’s file.

18. STEP 9 : Follow the Golden Rule
Nine Essential Steps to an Effective
Performance Improvement Plan (PIP)
You now realize the time and effort to develop a PIP. More importantly, you realize the time and
effort to develop an employee. The level of effort by the supervisor and employee will be a
worthwhile investment for the Organisation, employee and supervisor. Remember to follow the
Golden Rule. Treat employees as you would want to be treated if you were in the employee’s
situation. It is important for the employee to feel he/she has been treated fairly and consistently.
Allow for the PIP to be flexible and amended as needed. Always prepare your documentation as if
a third party not familiar with the workplace will be reading it. The third party reader should reach
the same conclusions.
It is recommended that a HR Relationship Managers review the document prior to discussing
with the employee. In closing, there are certain employee behaviors in the public workplace that
should not be documented without consulting Human Resources. For example, never document
or discipline an employee for exercising his/her constitutional rights, filing a workers’
compensation claim, and reporting a violation of the law to the appropriate authorities. In the
appendix of this guide you will find examples of PIP for your reference.