Use a Performance Improvement Plan when you have identified a performance and/or behaviour problem and are looking for ways to improve the performance of an employee. The Performance Improvement Plan plays an integral role in correcting performance discrepancies. It is a tool to monitor and measure the deficient work areas, processes and/or behaviours of a particular employee to improve performance or modify behaviour. Failure to improve may lead to progressive disciplinary action, including termination of employment.

Key items to remember

1. Define the problem. This is the deficiency statement. Determine if the problem is a performance problem (employee has not been able to demonstrate mastery of skills/tasks or achieve targets) or a behaviour problem (employee may perform the tasks but creates an environment that disrupts the workplace).

2. Define the duties or behaviours where improvement is required.

• what are the aspects of performance required to successfully perform these duties?
• which skills or competencies need improvement?
• what changes need to be made in application of skills an employee has already demonstrated.
• what behaviours need to be modified?

3. Establish the priorities of the duties and responsibilities.

• what are the possible consequences of errors associated with these duties?
• how frequently are these duties performed?
• how do they relate when compared with other duties?

4. Identify the standards upon which performance will be measured for each of the duties identified.

• are they reasonable?
• are they attainable?
• are they SMART?

5. Establish short-range and long-range goals and timetables for accomplishing change in performance/behaviour with employee.

• are they reasonable?
• are they attainable?

6. Develop an action plan.

• what will the manager do to help the employee accomplish the goals within the desired time frame?
• what will the employee do to facilitate improvement?
• are the items reasonable?
• can the items be accomplished?
• are the items flexible?

7. Establish periodic review dates.

• are the employee and the manager both aware of what will be reviewed at each of these meetings?

8. Measure actual performance against the standards to determine if expectations were:

• not met
• met
• exceeded

9. Establish a Performance Improvement Plan file for the employee.

• does the file contain documentation which identifies both improvements and/or continued deficiencies?
• is the employee encouraged to review this file periodically?

10. Put the Performance Improvement Plan in writing.

• has plain and simple language been used?
• have specific references been used to identify areas of deficiency?
• have specific examples been used in periodic reviews which clearly identify accomplishments or continuing deficiencies?
• have you chosen an easy-to-read format such as a table or a duty by duty listing?
• have the Terms of Agreement been included in the Performance Improvement Plan (see example below)?

Key terms

Action plan

In this section of the plan, the manager and employee agree on how the goals/targets will be accomplished. It should be noted where additional training is required, as should any agreements on the part of the manager or employee that directly relate to improvement of activities, final product or process.

How the objective or goal will be met is likely to be the most critical aspect for the success of a Performance Improvement Plan. Again, this is an area which should be agreed upon between the manager and the employee. If additional training is required, the training should be specified, as should the timetable in which it will be accomplished. Following training, another timetable should be established which will enable application of new skills learned. Other items that should be considered in the action section of the plan are identification of any special support which will be given by the manager and special efforts/activities or assistance suggested by the employee as necessary to reach the goal.

Aspects of performance

Duties include the primary job responsibilities that occur on a regular basis. Each duty should be defined in terms of technical and performance aspects.

Technical aspects are those by which we actually perform the task - email, programming, dismantling and reconstructing equipment, sales meetings, telephone calls etc. - these are generally "hands on" activities. These are often quantitative and/or qualitative in nature.

Performance aspects are those abstract qualities which enable us to accomplish goals--ability to learn new skills, ability to communicate, ability to be organized, ability to set priorities for work, etc. These are generally more subjective and qualitative in nature.

Deficiency statement

These are statements which clearly define the problems that exist with the performance and/or behaviour of the particular employee. Each deficiency should be identified in a separate statement and should be directly related. Such statements should be supported by appropriate documentation.

Performance Improvement Plan – Goals and Timetables

A Performance Improvement Plan is developed with a definite time frame in which the behaviour/performance problems will be corrected. It may have interim timetables or steps built in that will enable employees to build new habits and will provide managers with milestones against which to measure the progress of the employee. At the end of the time period established for reaching an ultimate goal, the employee should be able to reach a standard that "Meets Expectations". Successful application of this process requires two-way communication with full cooperation of both the manager and the employee.

In order for Performance Improvement Plans to be successful, it is important that timetables be flexible. Accomplishment of a short-range goal in less time than was allotted may indicate that the expectations for meeting the long-range goal can be re-established. On the other hand, where efforts have been made to reach a short-range goal but have fallen short, there may be an indication of a need to reach agreement to allow for additional time.

Periodic review dates

An aspect of a successful Performance Improvement Plan is that both the manager and the employee must participate in monitoring goals. Initially, meetings to discuss progress must be regularly scheduled and care must be given to keeping with the schedule. Meetings which must be postponed should be rescheduled immediately. This demonstrates to the employee the amount of value that is being placed on the plan by the supervisor. Results of each meeting should be made available in writing and should include a recap of what was discussed at the meeting, especially modifications made in the Plan.

Priorities

Is the duty a high priority, medium priority or low priority? Meeting all the goals of low priority duties may not be sufficient for an overall rating of "meets" or "exceeds expectations", while failing to meet one area that is rated "High" may be sufficient to require moving to a formal warning.

Standards

Performance standards state what behaviours or results are expected for performance to be considered satisfactory. Standards are the criteria against which performance is judged. Standards should be:

• attainable
• specific
• observable
• meaningful
• measurable, and
• stated in terms of quality, quantity, timeliness, or cost.

Involve the employee in the development of standards. Be certain the standards describe the conditions that will be met when performance is satisfactory. For example, how well, how much, what speed, etc. is expected.

Performance standards are the basis for performance evaluation and should clearly state how you and the employee will recognize when expectations have been met, exceeded, or not met.

Terms of Agreement

The purpose of this document is to identify performance deficiencies and to provide a clear concise mechanism for improving performance to a standard of "Meets Expectations".

Every effort will be made to provide training and support necessary for the successful completion of this Performance Improvement Plan. Items contained in this plan are subject to modification under several circumstances. First, should it become clear that the level of "Meets Expectations" has been attained prior to the projected date, the plan may be dissolved upon agreement of the manager and employee. Second, where improvement in overall performance is noted, but additional time and/or training is required to reach a standard of "Meets Expectations" in all areas, the plan may be renegotiated. Finally, after a reasonable amount of time has passed, should it be determined that the overall performance continues at the level of "Does Not Meet Expectations" or that a standard of "Meets Expectations" cannot be met, a final warning will be issued.