performance improvement plans

When an employee receives a poor performance review, management can give them an opportunity to improve by providing them with a Performance Improvement Plan. This gives the employee clear guidelines and objectives to meet in order for them to avoid demotion or dismissal.  For most people, the mention of a Performance Improvement Plan (PIP) strikes fear in their hearts primarily due to the fact that PIPs are often equated with being fired which is most certainly not the case. Although the seriousness of PIPs shouldn’t be ignored, all hope is not lost. In this article we’ll at look Performance Improvement Plans and why they serve to benefit your company.


Every employer strives to avoid/ minimise employee turnover in order to save the company both time and money. This is why PIPs are so important as it is more efficient to help current employees improve their performance rather than having to deal with the expenses that come with dismissing employees and searching for applicants to fill the open positions. In addition, PIPs enable the company to save on money that would otherwise be spent on training new hires.


Company culture is all about an organisation’s values, beliefs, practices and expectations that are a core part of the way in which both employers and employees interact with each other. Most companies have a warm family-based culture and treat their employees like members of one big family all working together to achieve a common goal. For the most part, employees rely on their employers for their income but for many, their careers are a source of joy and fulfilment. That being said, many employees hope that when they experience tough times, their employers will offer them support as part of the supportive company culture. Offering PIPs shows employees that you care about their wellbeing and are invested in their improvement and success.


In most cases performance reviews are usually done at the end of the year to assess employees’ performance throughout the year. There are rarely any consequences for low performance but instead the employee’s performance is criticised. Some employees may take this criticism negatively even though it is meant to help them improve their work. With PIPs employees are provided with a clear picture of the specific areas in which they are not performing well and how they can improve. In addition, PIPs offer employees a chance to actively take part in finding solutions to their specific challenges.


It is not uncommon for even the best employees to struggle and feel a bit lost due to various reasons including a lack of understanding or confidence in their work. PIPs are important because they provide an open avenue of communication for employees to get guidance on how to approach various tasks and gain confidence in their work. PIPs enable the employee and the company to grow together as they work through these difficult areas. Through this process, employers have a chance to encourage and support their employees and even reward them for a job well done. This boosts employee morale while keeping the employee on track and reinforce the value of the PIP.


As your company grows and soars to new levels of success, the need for new skills and abilities among your employees will grow in order to stay relevant and keep up with the growing company. this does not mean that you have to hire new employees with these particular skills. Instead you can create PIPs that will enable your employees to get up to speed with the new market demands by offering additional training and learning opportunities that will improve their performance.

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