Performance Improvement Plan (PIP) Guidelines

What:

A Performance Improvement Plan  is a document that lists where an employee is falling short
and what he/she can do to improve. For instance, the performance action plan may detail
skills or training the employee lacks. Alternatively, it could specify how the employee needs
to change his behavior. In either case, the PIP will clearly state the steps the employee
needs to take to make the necessary improvements.

How:

1. The PIP must have the following details clearly listed in all cases
 Goal
 Objectives
 Action
 Metrics
2. A PIP can be recommended for an employee based on the pre requisites provided in Annexure 1

When:

3. An employee can be placed on a PIP for various aspects that can be behavioral, performance
related or any other reason that affects work productivity.
4. An employee can be put on PIP after he has been coached for shortcoming and significant
improvement is not seen.
5. For instance, a PIP for failure to achieve target can be actioned if an employee has failed to meet
targets for a three periods consecutively. This is applicable to the employees who are on
probation too.

Questions while recommending a PIP:

6. Does the employee have habitual performance problems? In most cases, a PIP shouldn’t
be used for a one-time issue. If an employee makes a mistake, their direct supervisor should
have a documented conversation to discuss their concern and give the employee an opportunity
to make corrections. However, if the issue continues to occur, it may be time for a PIP.
7. Can the issues be corrected with an action plan? Issues with work quality, meeting goals and
completing work on time are all examples of behaviors you can work to correct through a PIP.
8. Have you made all reasonable accommodations to help get the employee on track? Is the
employee’s poor performance due to a lack of training or a known personal issue? If so, be sure
you’ve taken the necessary steps to provide the resources they need. If you’ve made these
accommodations and the issue persists, a PIP may be the course-correcting action they need to
improve.
Annexure 1
Scenario Points to be considered
Meeting Store Targets - Is the store achieving targets?
- Does the employee have
enough opportunity to hit the
target? Store footfall
- Have all the other store
members achieved targets?
- Was the employee on leave? Or
was he/she frequently
transferred.
Attendance - Has the employee had this
issue for the last few months?
- Is this habitual? Or does the
employee have any concerns?
Store operating - Is the employee aware of the
procedures SOP?
- Is this a repeat offence?
- Has he/she been corrected,
coached on the subject?
Communication - Does the employee listen
actively?
- Does his/her communication
lead to misunderstandings in
the process
- Is his/her tone offensive?
Action
- Outline the target details
clearly
- Ensure that the targets are
achievable
- LM should be sure to
provide trainings to enable
achievement of goals
- Employee store induction
book can be revisited
- Monitor the employees
attendance on a weekly
basis to provide feedback
- Revisit the store operating
processes
- Create real situations for
the employee to learn the
process
- Encourage to express view
points
- Gauge if there is
improvement in the tone
- Set clear expectations on
the outcome of the
communication exercises