Performance Improvement Plans (PIPs) are meant to support and guide an employee to improve his or her performance, bring it to satisfactory levels. Yet, statistics reveal a stark truth: between 50% to 80% of PIPs end in disappointment, leading to voluntary or involuntary exit.
Here’s my personal experience from yesteryears. I had taken over a new role. During the handover discussion, my predecessor told me that one of the team members, let’s call him Sid, was recently put on PIP. He explained the performance challenges and the support Sid needs. As per organization policy, Sid was given six months to turn around.
I worked closely with Sid over next six months, his performance didn’t improve, and we let him go! Reflecting back, I think I was also responsible to some extent. Based on the feedback received, negative Pygmalion effect had kicked in. I probably showed my low expectations through subtle non-verbal cues, micro-messages, diluting the impact of my development support.
If we are serious about making PIPs work for 80% of the employees, we must do things differently.
1. Peel back layers to identify the root cause for poor performance. The PIP designed must be tailored to the root cause. Is it a role misfit? Interpersonal friction? Personal hurdles? Tailor the PIP accordingly. Shift roles if needed, change managers if conflicts persist, or offer counselling or an extended break for personal challenges
2. If the employee is assigned to a new manager, can we consider not informing the new manager about the PIP status? Will it help the employee start afresh, without the baggage of the label ‘poor performer’? And avoid inducing bias in the manager.
3. Can the current manager be helped to acknowledge his or her bias and potential implications? May be through guided self-reflection, or honest conversation with a coach.
4. Can PIP be an opportunity for ‘empathy in action’? Employees may find it hard to accept and passively resist, either due to lack of buy-in or perception of unfair treatment. Can the employee by counseled to get over his or her feelings and make all efforts to bounce back.
5. Finally, before initiating a PIP, ask the hard questions: Is there genuine potential for improvement? Or are we just going through the motions? Honest evaluations save time, energy, and frustration.
Seen a PIP success story? Share your insights on what worked well?
Perspectives 