Creating a Performance Improvement Plan (PIP) That Works

Learn how to create a performance improvement plan that increases productivity and encourages growth.

In today's business and financial environment, employers are faced with difficult decisions about which employees to retain as they resume and reimagine their operations. Employers have the right to determine who the best-qualified employees are to help their business successfully adapt to the new normal in the workplace. In order to avoid legal landmines such as unlawful discrimination and retaliation, employers must use objective criteria for performance management. One of the best tools in the HR tool box is the Performance Improvement Plan (PIP). The PIP helps both the employer and employee address performance issues by identifying problem areas, create goals and objectives for improvement, provide a way to monitor progress and clearly set forth the consequences to the employee for failure to meet management's expectations. This topic helps HR professionals and supervisors understand when PIPs are appropriate and how to create and implement a legally defensible PIP. This material also explains how to draft and administer an effective PIP. Employers who cannot provide documentation of their efforts to place employees on notice of performance deficiencies and give the employees an opportunity to fix the problems before termination are leaving themselves open to costly and time-consuming discrimination and retaliation lawsuits. This information is critical for employers so they can legally support their personnel decisions.