{"id":92372,"date":"2023-08-04T13:06:21","date_gmt":"2023-08-04T20:06:21","guid":{"rendered":"https:\/\/www.betterworks.com\/?p=92372"},"modified":"2023-12-17T16:08:47","modified_gmt":"2023-12-18T00:08:47","slug":"rethinking-performance-improvement-plans","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/rethinking-performance-improvement-plans\/","title":{"rendered":"Performance Improvement Plans: Why They Don&#8217;t Work and What to Do Instead"},"content":{"rendered":"\n<div class=\"wp-block-ht-block-toc is-style-contrasted htoc htoc--position-wide toc-list-style-plain\" data-htoc-state=\"closed\"><span class=\"htoc__title\"><span class=\"ht_toc_title\">Table of Contents<\/span><span class=\"htoc__toggle\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\"><g fill=\"#444\"><path d=\"M15 7H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><path d=\"M15 1H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1zM15 13H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><\/g><\/svg><\/span><\/span><div class=\"htoc__itemswrap\"><ul class=\"ht_toc_list\"><li class=\"\"><a href=\"#h-traditional-thinking-about-performance-improvement-plans\">Traditional thinking about performance improvement plans&nbsp;<\/a><\/li><li class=\"\"><a href=\"#h-4-reasons-creating-a-pip-doesn-t-improve-performance-issues\">4 reasons creating a PIP doesn\u2019t improve performance issues<\/a><ul class=\"ht_toc_child_list\"><li class=\"\"><a href=\"#h-employees-aren-t-solely-responsible-for-performance\">Employees aren\u2019t solely responsible for performance<\/a><\/li><li class=\"\"><a href=\"#h-employees-perceive-pips-as-a-red-flag\">Employees perceive PIPs as a red flag<\/a><\/li><li class=\"\"><a href=\"#h-pips-are-reactive-rather-than-proactive\">PIPs are reactive rather than proactive<\/a><\/li><li class=\"\"><a href=\"#h-employees-feel-pips-are-demoralizing\">Employees feel PIPs are demoralizing<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#h-6-reasons-for-poor-performance\">6 reasons for poor performance<\/a><ul class=\"ht_toc_child_list\"><li class=\"\"><a href=\"#h-failure-to-communicate-the-business-strategy\">Failure to communicate the business strategy<\/a><\/li><li class=\"\"><a href=\"#h-unclear-organizational-goals\">Unclear organizational goals<\/a><\/li><li class=\"\"><a href=\"#h-lack-of-visibility-across-the-workforce\">Lack of visibility across the workforce<\/a><\/li><li class=\"\"><a href=\"#h-poor-communication-between-managers-and-employees\">Poor communication between managers and employees<\/a><\/li><li class=\"\"><a href=\"#h-improperly-trained-and-supported-management\">Improperly trained and supported management<\/a><\/li><li class=\"\"><a href=\"#h-failure-to-help-employees-identify-career-paths\">Failure to help employees identify career paths<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#h-performance-improvement-plans-for-employees-are-out-what-s-next\">Performance improvement plans for employees are out. What\u2019s next?&nbsp;<\/a><\/li><li class=\"\"><a href=\"#h-performance-improvement-plans-don-t-work\">Performance improvement plans don\u2019t work<\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<p>Performance improvement plans for employees have been a staple element of <a href=\"https:\/\/www.betterworks.com\/performance-management\/\">performance management<\/a> for decades. But in all that time, how often have they actually worked?<\/p>\n\n\n\n<p>Most people will tell you that performance improvement plans, or PIPs, are nothing more than the last stop on the way to termination. \u201cWhether you\u2019re on the receiving end, the manager who initiated it, the leader overseeing it, or just an uncomfortable bystander \u2014 many people see a PIP as the corporate version of a slow-moving car crash,\u201d said Betterworks CEO <a href=\"https:\/\/www.linkedin.com\/in\/dougdennerline\" target=\"_blank\" rel=\"noreferrer noopener\">Doug Dennerline<\/a> in an HR.com article. \u201cWhat should be a last lifeline for an underperforming employee often causes more pain than it solves.\u201d<\/p>\n\n\n\n<p>Like annual performance reviews, PIPs are no longer functional in today\u2019s work climate. Yet they remain a go-to for many people leaders and managers. It\u2019s time to reform how we perceive performance issues so we can address them at the root, not the branches.&nbsp;<\/p>\n\n\n\n<p>Instead of asking how to create a performance improvement plan, let\u2019s explore why PIPs just don\u2019t work \u2014 and what\u2019s really driving \u200cpoor performance in your organization.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-traditional-thinking-about-performance-improvement-plans\">Traditional thinking about performance improvement plans&nbsp;<\/h2>\n\n\n\n<p>Nominally, PIPs help employees reach their full potential. The idea is to create a targeted action plan for an employee to improve their performance. PIPs are meant to provide the worker with the necessary support and guidance to develop the skills and abilities they need to succeed in the role.<\/p>\n\n\n\n<p>PIPs typically begin with assessing the employee\u2019s current performance. This assessment looks at areas such as attendance, quality of work, communication skills, and any other areas of concern. From there, the manager identifies where an employee fails to meet expectations. Those usually become the targeted areas of improvement.<\/p>\n\n\n\n<p>Next, the manager (overseen by HR) is supposed to collaborate with the employee to create a plan that clearly outlines the goals, actions, and timeline necessary for the employee to reach their desired performance level. The performance improvement process includes <a href=\"https:\/\/www.betterworks.com\/magazine\/three-bad-habits-wrecking-one-on-ones-and-what-to-do-instead\/\">regular check-ins<\/a> and progress reviews. These help the employee view their results while providing accountability for meeting goals.&nbsp;<\/p>\n\n\n\n<p>But PIPs have earned a poor reputation. Most employees believe that being put on a PIP essentially means their employer has decided to push them out. \u201cIn theory, PIPs are a chance to make positive change \u2014 for everyone,\u201d Dennerline said. \u201cBut in reality, the success rate of surviving a PIP is very low and stressful for all involved.\u201d<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-reasons-creating-a-pip-doesn-t-improve-performance-issues\">4 reasons creating a PIP doesn\u2019t improve performance issues<\/h2>\n\n\n\n<p>Although the concept of PIPs sounds promising, PIPs rarely move the needle toward better outcomes. They may even cause more damage than good. But how can something designed exclusively to drive performance produce such \u200copposing outcomes?&nbsp;<\/p>\n\n\n\n<p>Check out these four reasons PIPs don\u2019t lead to better performance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-employees-aren-t-solely-responsible-for-performance\"><strong>Employees aren\u2019t solely responsible for performance<\/strong><\/h3>\n\n\n\n<p>Rarely is poor performance solely because of the employee. Many other factors can contribute to a decrease in performance, including a lack of resources, inadequate training and support, unclear expectations, or a lack of motivation. \u201cA PIP may be the result of a single employee\u2019s failure \u2014 but just as often, it\u2019s a symptom of organizational or <a href=\"https:\/\/www.betterworks.com\/magazine\/how-to-improve-manager-effectiveness-and-help-employees-thrive\/\">managerial shortcomings<\/a>,\u201d Dennerline said.&nbsp;<\/p>\n\n\n\n<p>If employees aren&#8217;t given the proper tools, training, and guidance, they&#8217;re unable to work to the best of their abilities.&nbsp;<\/p>\n\n\n\n<p>Because employees aren\u2019t solely responsible for their shortcomings, a plan that treats them as such can come across as accusatory. And because many PIPs ignore the other factors contributing to overall performance, they\u2019re far less likely to be successful than a more holistic approach might be.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-employees-perceive-pips-as-a-red-flag\"><strong>Employees perceive PIPs as a red flag<\/strong><\/h3>\n\n\n\n<p>While the intention of PIPs is to help employees improve their performance, the perceived implications can be intimidating. Employees often associate PIPs with disciplinary action and being on the brink of termination, which can lead to feelings of insecurity and fear. The manager-employee relationship suffers, generally coming to a head when the employee opts to leave before their manager can fire them.<\/p>\n\n\n\n<p>Furthermore, when an employee is placed on a PIP, they may feel their co-workers also view them as inadequate or a liability. The employee may feel under constant scrutiny, contributing to feelings of overwhelm and causing them to disengage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pips-are-reactive-rather-than-proactive\"><strong>PIPs are reactive rather than proactive<\/strong><\/h3>\n\n\n\n<p>Good managers address performance issues before they become major problems. PIPs, however, are usually implemented after the issue has become serious. This can cause the employee to feel as though they are being unfairly targeted and judged, leading to resentment and a lack of motivation on their part.<\/p>\n\n\n\n<p>Furthermore, reactive PIPs can be too little, too late. By the time they&#8217;re implemented, the employee\u2019s performance shortcomings might be too extensive or unfixable, making the PIP essentially useless.<\/p>\n\n\n\n<p>\u201cRather than last-minute, half-hearted triage, organizations should be stepping up first and proactively addressing the environment that is producing failure,\u201d Dennerline said. <a href=\"https:\/\/www.betterworks.com\/magazine\/josh-bersin-every-single-person-in-your-company-wants-to-do-more\/\">Employees want to do more<\/a>, but they need the right resources and support to perform at their best.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-employees-feel-pips-are-demoralizing\"><strong>Employees feel PIPs are demoralizing<\/strong><\/h3>\n\n\n\n<p>Another issue that can arise when an employee is placed on a PIP is that they may believe their efforts are being overlooked or undervalued. This can be especially true if the employee believes that they have been working hard and that their efforts aren&#8217;t being recognized.&nbsp;<\/p>\n\n\n\n<p>\u201cRather than promoting improvement, it singles out an individual for their shortcomings without necessarily addressing the root causes of the underperformance, many of which can lie within the organization or with the manager,\u201d Dennerline said.&nbsp;<\/p>\n\n\n\n<p>If the employee feels their work isn&#8217;t appreciated, they may be less likely to take the PIP process seriously or put forth the necessary effort to improve.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"580\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-1-1024x580.jpg\" alt=\"\" class=\"wp-image-92373\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-1-1024x580.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-1-980x555.jpg 980w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-1-480x272.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-reasons-for-poor-performance\">6 reasons for poor performance<\/h2>\n\n\n\n<p>Employees are often blamed for poor performance outcomes, but many factors go into a team\u2019s success or failure. While everyone needs to take responsibility for their actions and work, team performance also depends on the operating environment, available resources, and organizational leadership.<\/p>\n\n\n\n<p>Here are six reasons for poor performance outcomes beyond individual employees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-failure-to-communicate-the-business-strategy\"><strong>Failure to communicate the business strategy<\/strong><\/h3>\n\n\n\n<p>If employees aren&#8217;t aware of the overall <a href=\"https:\/\/www.betterworks.com\/magazine\/hr-language-of-business-strategy\/\">business strategy<\/a>, they can lose the thread of why their job matters. Feeling as though they\u2019re working in a vacuum can be demotivating \u2014 and their performance may suffer.&nbsp;<\/p>\n\n\n\n<p>\u201cIf strategic objectives in your organization are prone to shift without clear communication,\u201d Dennerline said, \u201cemployees may be left scrambling, leading to widespread confusion, decreased productivity, frustration, and sometimes apathy.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-unclear-organizational-goals\"><strong>Unclear organizational goals<\/strong><\/h3>\n\n\n\n<p>Fuzzy goals often lead to confusion among team members. Employees who don\u2019t know what to focus on can struggle to prioritize, feel overwhelmed, and lose focus on important tasks. Without a clear vision of their role in organizational goals, workers might even put their time and energy toward the wrong tasks. Managers might view this as someone not caring or paying attention instead of the truth \u2014 they simply aren\u2019t sure which tasks produce the highest value for the business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-lack-of-visibility-across-the-workforce\"><strong>Lack of visibility across the workforce<\/strong><\/h3>\n\n\n\n<p>Lack of visibility across an organization can have a detrimental effect on employee performance. Without clear visibility, employees may not be aware of how their goals and tasks influence or intersect with others in the organization. Additionally, employees may struggle to access the resources they need to complete their work, leading to delays or missed deadlines.<\/p>\n\n\n\n<p>\u201cA lack of transparency across the organization can also create an environment of uncertainty, where employees feel like leadership isn\u2019t communicating well \u2014 or worse, isn\u2019t holding themselves accountable to the same standards,\u201d Dennerline said. A work environment that feels uncertain can cause employees to disengage and disconnect.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong><em>\u201cA shift in perspective may be necessary \u2014 moving from viewing underperforming employees as the sole problem to acknowledging bigger potential organizational and managerial shortcomings \u2014 and solving them.\u201d<\/em><\/strong><\/p><cite>Doug Dennerline, CEO, Betterworks<\/cite><\/blockquote><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-poor-communication-between-managers-and-employees\"><strong>Poor communication between managers and employees<\/strong><\/h3>\n\n\n\n<p>Miscommunication between managers and team members can lead to errors, unintended outcomes, and poor performance. This miscommunication can include task-specific directions or bigger-picture <a href=\"https:\/\/www.betterworks.com\/magazine\/performance-enablement-in-the-modern-workplace\/\">performance expectations<\/a>. When managers can\u2019t provide that clarity, employees may become confused or uncertain about what to do.<\/p>\n\n\n\n<p>Manager and employee conversations have to go both ways if employees are to feel like they have a voice. Performance and morale can worsen when employees believe their perspectives aren\u2019t valued or that they don\u2019t have recourse.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-improperly-trained-and-supported-management\"><strong>Improperly trained and supported management<\/strong><\/h3>\n\n\n\n<p>Without strong leadership, employees may become disengaged, less productive, and less motivated. The way we\u2019ve traditionally thought about the manager\u2019s role doesn\u2019t help. Managers are often promoted for being top individual performers, and many are expected to micromanage employee tasks. But today\u2019s managers need to connect with and support their people as they work toward performance goals.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Insights from <a href=\"https:\/\/landing.redthreadresearch.com\/managing-better-summary\" target=\"_blank\" rel=\"noreferrer noopener\">RedThread Research<\/a> suggest \u201cthat managers need to 1) get comfortable with being transparent, 2) help identify tasks that drive goals, 3) help employees stay on track, and 4) remove barriers to work,\u201d Dennerline said.&nbsp;<\/p>\n\n\n\n<p>But this ability doesn\u2019t come naturally to everyone, and <a href=\"https:\/\/www.betterworks.com\/magazine\/stacia-garr-on-manager-effectiveness\/\">managers need training and support from HR<\/a> to achieve these priorities.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-failure-to-help-employees-identify-career-paths\"><strong>Failure to help employees identify career paths<\/strong><\/h3>\n\n\n\n<p>Failing to help employees identify career paths can have a negative impact on overall employee performance. Your workers can stagnate if they aren\u2019t supported by employers in their professional growth.<\/p>\n\n\n\n<p>Team members need to see clear options for their professional growth and development. If <a href=\"https:\/\/www.betterworks.com\/magazine\/performance-enablement-internal-mobility\/\">internal mobility<\/a> isn\u2019t possible, employees will be less inspired to achieve their potential and less successful in their overall performance.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"865\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-2-1024x865.jpg\" alt=\"\" class=\"wp-image-92374\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-2-1024x865.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-2-980x828.jpg 980w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-2-480x406.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-performance-improvement-plans-for-employees-are-out-what-s-next\">Performance improvement plans for employees are out. What\u2019s next?&nbsp;<\/h2>\n\n\n\n<p>Performance improvement plans for employees can be an intimidating and disempowering process, and they often fail to address the root causes or provide long-term solutions. But if there\u2019s no such thing as an effective PIP, how can you help team members close gaps in performance?<\/p>\n\n\n\n<p>A better approach is to focus on coaching and developing employees through frequent conversations.&nbsp;<\/p>\n\n\n\n<p>Ongoing coaching and development help employees understand and address skill gaps, recognize and build on their strengths, and create a plan for achieving their goals. The coaching-and-conversations approach also provides a supportive and collaborative environment that encourages employees to ask questions and take ownership of their development. When HR leaders help managers foster a coaching mindset, they contribute to a culture of continuous learning and growth.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"580\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-3-1-1024x580.jpg\" alt=\"\" class=\"wp-image-92393\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-3-1-1024x580.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-3-1-980x555.jpg 980w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/08\/Rethinking-Performance-Improvement-Plans-SEO-Blog-Internal-3-1-480x272.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-performance-improvement-plans-don-t-work\">Performance improvement plans don\u2019t work<\/h2>\n\n\n\n<p>\u201cEffective performance management isn&#8217;t about putting employees on trial \u2014 it&#8217;s about equipping them with the tools they need to succeed and grow,\u201d Dennerline said.&nbsp;<\/p>\n\n\n\n<p>There\u2019s no place for outdated performance improvement plans for employees in the era of coaching and conversations. By addressing system-wide barriers to performance, you can leave PIPs in the past where they belong.<\/p>\n\n\n\n<p><br>Want to learn more? Check out <a href=\"https:\/\/www.betterworks.com\/state-of-enablement-report-2023\/\">Betterworks\u2019 2023 State of Performance Enablement report<\/a>.<\/p>\n\n\n<div class=\"lazyblock-post-resource-cta-Z1RIRUV align  wp-block-lazyblock-post-resource-cta\"><div class=\"custom-post-resource-box\" style=\"background:url('https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/05\/2023-PESurvey-Horizontal.jpg;') no-repeat center;background-color:;box-shadow: 0px 0px 18px -5px ;background-color:\">\n  <div class=\"custom-box-heading\" style=\"max-width:500%;\"><p style=\"color:;font-size:36px\">Drive change that matters<\/p><\/div>\n  <div class=\"custom-box-cta\" style=\"\"><a class=\"et_pb_button\" href=\"https:\/\/betterworks.com\/state-of-enablement-report-2023\/\" style=\"color:#ffffff;background-color:#4DC6D1;\">Download Now<\/a><\/div>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Here are some reasons performance improvement plans for employees just don\u2019t work \u2014 and the real culprits behind \u200cpoor performance in your organization.<\/p>\n","protected":false},"author":111,"featured_media":92379,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[237,3307],"tags":[],"featured_location":[],"industry":[],"class_list":["post-92372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-experience","category-performance-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rethinking Performance Improvement Plans for Employees - Betterworks<\/title>\n<meta name=\"description\" content=\"Here are some reasons performance improvement 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