Building a world-class performance improvement plan:

THE GUIDE

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Understanding the basics of PIP

What does PIP stand for?

Performance Improvement Plan, commonly referred to as PIP, is an acronym that is frequently used in the context of employee performance management.

What is a performance improvement plan?

A Performance Improvement Plan is a method of addressing a problem when an employee or team is not performing as well as they should be. The PIP is a documented process that outlines specific steps an employee needs to take to improve their performance in a particular area or overall. It’s a tool used by managers to help employees who are struggling to meet the requirements of their job or to address specific issues that need attention. In essence, a PIP is a structured approach to improve performance.

What are the benefits of using a PIP?

PIPs are effective methods for improving employee performance and preventing termination. By providing employees with clear expectations, support, and opportunities for improvement, employers can help their workforce succeed and ultimately achieve their goals.

  • Clarifies Expectations: A PIP clarifies the expectations for both the employee and the employer. By setting clear goals and timelines, employees know exactly what is expected of them, which can help to reduce confusion and uncertainty.
  • Provides Support: Another benefit of a PIP is that it provides employees with the support they need to succeed. The plan should include specific resources and training opportunities that will help the employee improve their skills and knowledge.
  • Improves Communication: A PIP can also improve communication between employees and their managers. By regularly reviewing progress and discussing areas for improvement, both parties can gain a better understanding of each other’s perspectives and work together more effectively.
  • Increases Motivation: When employees have a clear understanding of what is expected of them and have the support they need to succeed, they are more likely to be motivated and engaged in their work.
  • Prevents Immediate Termination: Finally, a PIP can help to prevent employee termination. Upskilling or improving an employee’s performance is beneficial for all parties involved. By providing employees with a clear roadmap for improvement, employers can give them the opportunity to address performance issues and avoid termination.

What details should be included in the PIP?

An effective PIP should include:
  • Clear definition of the problem(s)
  • Specific goals
  • Required resources
  • Plan of action
  • Timelines
  • Progress monitoring
What details should be included in the PIP?

What does a performance improvement plan mean in software engineering?

A PIP can be a great tool for software engineering leads who want to improve an individual employee’s performance, or even the performance of an entire team.

Here are some reasons why you’d use a PIP in software engineering:

  • Unacceptable quality of work

    Poor quality work leads to poor quality products, which means unhappy users; so you need to be a perfectionist. If an employee is consistently producing work that is of poor quality, bug-riddled and late, a PIP can be used to address this issue. The PIP may outline specific quality standards that the employee must meet, as well as provide feedback and guidance on how to improve their work.

  • Low productivity

    If an employee is consistently missing deadlines or is not producing enough work, a PIP can be used to address this issue. In this case, the PIP would outline specific productivity goals that the employee must meet, as well as provide guidance on how to manage their time more effectively.

  • Bad team player

    Software engineering is all about working as a team. If an employee is not working well with others on the team, a PIP can be used to address this issue. Here, the PIP would detail specific teamwork goals that the employee must meet, as well as provide guidance on how to communicate more effectively and work collaboratively with others.

  • Weak technical skills

    If an employee is lacking in certain technical skills required for their role, it can hold the whole team back. A PIP could be a great tool to address this issue. Given the case, a PIP would outline specific training or learning objectives that the employee must meet, as well as provide feedback and guidance on how to improve their technical skills.

  • Poor communication skills

    Communication is the key to high-achieving software engineering teams. If an employee is struggling with communication skills, the team will suffer; so a PIP could be used to address this issue. In this situation, the PIP would contain specific communication goals that the employee must meet, as well as provide feedback and guidance on how to improve their communication skills, collaboratively with others.

What does a performance improvement plan mean in software engineering?

How long should a performance improvement plan last for?

The length of a performance improvement plan will vary depending on the specific performance issues and goals. However, a typical performance improvement plan will last anywhere from 30 to 90 days. This time-frame encourages a quick turnaround in behavior whilst ensuring that there is enough time for the employee to improve and return to regular work.

In software engineering, PIPs are generally created closer to the 30-day mark.

How to write a PERFORMANCE IMPROVEMENT PLAN

Creating an effective PIP requires careful planning and execution.

Follow these steps when writing your PIP to make it effective:

  • Define the problem

    Identify the specific performance problem that needs to be addressed.

  • Set goals

    Establish clear and measurable goals that the employee needs to achieve.

  • Identify resources

    Determine the resources that the employee will need to achieve the goals.

  • Explain the plan

    Create a plan that outlines the specific steps the employee needs to take to achieve the goals.

  • Establish timelines

    Set realistic timelines for achieving the goals.

  • Implement monitoring

    Regularly monitor the employee’s progress with set KPIs and provide feedback.

  • Explain process of review

    Regularly review the plan to ensure that it’s working effectively.

The PIP should present all of these ideas as a document, to ensure that both the manager and the employee in question can read and understand everything included in the document.

How to write a  PERFORMANCE IMPROVEMENT PLAN

Best practices for administering an effective PIP

As a manager or supervisor, it’s important to approach the PIP process with a positive and supportive attitude. Remember, the goal is not to punish or discipline employees but rather to help them overcome obstacles and achieve their goals. By taking a proactive approach to performance improvement, you can create a culture of excellence and help your organization thrive.

Here are some best practices you can use to support your employees on a PIP:

  • Maintain Open Communication

    Communication is key when it comes to administering an effective PIP. It is important to communicate with the employee throughout the process. Regular check-ins should be scheduled to discuss progress and address any concerns. It is important to provide feedback that is specific, constructive, and actionable. This will help the employee understand what they need to do to improve their performance. Without communication, the PIP process can feel isolating, but by building an open communication channel, the PIP can actually be an opportunity to improve the rapport between you and your employee, but also makes sure the job gets done.

  • Focus On Positives Too

    It’s easy for a PIP to be seen as punishment in the eyes of an employee. This can be a serious confidence killer, and decrease the motivation for the employee to get on the PIP and improve. When giving out a PIP, you should also pair it with some positive feedback; something work-related that will make the employee feel valued, and more likely to work hard at improving with the PIP.

  • Keep An Open Ear

    Employees are more likely to be engaged and committed to their work when they feel that their opinions and ideas are heard and valued. Listening to your employees thoughts and ideas about their own performance can reveal the bigger picture of the employees work and identify any obstacles or challenges that may be hindering their performance. These details could be relevant enough that it could change the nature of the PIP all together.

Best practices for administering an effective PIP

What is the PIP Rate?

The Personal Performance Improvement Plan Rate is calculated as the percentage of employees who receive a PIP within a given period of time, typically a year. To calculate the PIP rate, divide the number of employees who received a PIP by the total number of employees in the organization and multiply by 100.

For example:
If a company has 100 employees and 10 employees received a PIP within a year, the PIP rate would be calculated as follows: (10 / 100) x 100 = 10%
So the PIP rate for that company would be 10%

PIPs are often more common in larger, later stage companies with a significant workforce. It’s common for these companies to have 0.5-3% of their employees receive a PIP.

Why is the PIP rate important?

  • Managerial Insights

    The Personal Performance Improvement Plan Rate is important because it provides insight into the effectiveness of a company’s performance improvement plan process. A low PIP rate may indicate that the company is not effectively managing employee performance, while a high PIP rate may indicate that the company is proactively identifying and addressing performance issues.

  • Employee Performance Patterns

    Tracking the PIP rate can also help companies identify trends and patterns in employee performance. For example, if a particular department or manager has a consistently high PIP rate, it may indicate a need for additional training or coaching in that area.

What is the PIP turnaround rate?

The personal improvement plan turnaround rate is the percentage of PIPs that are successfully completed within a specific timeframe. This means that if an organization creates 100 PIPs and 80 of them are successfully completed within the designated time frame, the PIP turnaround rate would be 80%.

Why is it important to measure PIP turnaround rates?

Measuring PIP turnaround rates is important for a few main reasons.

  • Determining the effectiveness of a company’s training and development program:

    If the PIP turnaround rate is low, it may indicate that the organization needs to improve its training and development programs to better support its employees.

  • Seeing departmental patterns:

    Measuring PIP turnaround rates of orgs within the company can help management see if there are problems worth addressing in specific departments. For example, if software engineering has an exceptionally low PIP turnaround rate it’s a sign that the PIPs aren’t accommodative enough and don’t support employees to improve. Similarly if software engineering’s PIP turnaround rate is too high then it could be a sign that the PIPs aren’t challenging the employees enough to actually change their ways and improve.

Performance Improvement Plan Templates

PIP Example #1

Improving customer service

If your employees are not providing good customer service, it can damage your reputation and lose customers. A PIP can help you set goals and objectives to improve customer service. Your employees can work with customers to identify their problems and provide solutions. They can also attend training sessions to improve their customer service skills.

Given to:
VP of Growth
PIP Goal:
Grow the service by X amount of subscribers over the next month.
Objectives:
Increase the number of DAU and increase the number of email sign-ups.
Action:
Improve the quality of campaigns, better advertise (or increase) the benefits of the program, research and implement a retention strategy.
Metrics:
DAU, Customer retention rate.

PIP Example #2

Improving the quality of work

If your employees are delivering low-quality work or missing deadlines, a PIP can help. You can set objectives to ensure that they meet all deadlines and produce error-free work. You can also collaborate with a senior team member to check for errors and improve quality.

Given to:
Software Engineer
PIP Goal:
Improve the quality of work.
Objectives:
Push code to production on time with fewer bugs.
Action:
Collaborate with a senior team member to check for errors and judge whether the quality is acceptable.
Metrics:
Number of late completions and the quality of work (the latter may be subjective).

PIP Example #3

Increasing productivity

If you have an employee in charge of growing a program but not seeing results, a PIP can help. You can set objectives to increase the number of subscribers and decrease the number of inactive users. The PIP can outline the employee to work on improving campaigns, better selling the benefits of the program, and implementing an improved retention strategy.

Given to:
VP of Growth
PIP Goal:
Grow the service by X amount of subscribers over the next month.
Objectives:
Increase the number of DAU and increase the number of email sign-ups.
Action:
Improve the quality of campaigns, better advertise (or increase) the benefits of the program, research and implement a retention strategy.
Metrics:
DAU, Customer retention rate.

PIP Example #4

Correcting unprofessional behavior

If an employee is exhibiting unprofessional behavior, a PIP can help. You can set objectives for the employee to arrive on time, treat others with respect, or attend all required meetings. You can also provide appropriate workplace behavior training.

Given to:
Employee
PIP Goal:
Stop unprofessional behavior entirely.
Objectives:
Be punctual to work events and treat others with respect.
Action:
Only miss work when authorized for personal or medical reasons. Receive appropriate workplace behavior training. Communicate better to the team when you will miss meetings.
Metrics:
Employee arrival time, number of co-worker complaints.

PIP Example #5

Holistic software engineering

Let’s have a look at John. John is a software engineer who has been with the company for two years. However, over the past few months, John’s performance has been below the expected standards. He has been missing deadlines, making mistakes, and his code quality has been poor. John’s manager has decided to take action, and this is his PIP:

1. Identify the Performance Issues
In John’s case, his performance issues are:
    Missing deadlines
    Making mistakes
    Poor code quality

2. Set Specific Goals
The next step is to set specific goals for John to achieve. An effective method of setting goals is to follow the SMART framework. The goals should be specific, measurable, achievable, relevant, and time-bound.

John’s goals are to:
    Decrease Cycle Time by two days within the next month
    Decrease MTTR by 5 hours by conducting on-going integrated, exploratory
    and functional testing
    Increase quality of code by doing 2 more code reviews per week

3. Outline Required Resources
We will enroll John in a training course designed to improve his velocity and decrease the number of critical bugs he produces.

4. Explanation of the Plan
John will complete the training course in conjunction with his current work, but reduce his commitments to the team by 25% to ensure he has time to work on learning these new skills. Upon completion of the training program he will rejoin his team 100% and will have a review by the end of the next quarter where judgment will be made based on his recent performance to see whether he truly has improved or not.

5. Establishing the Timeline
John’s training course will take 2 months to complete, and the review will be taken 3 months later at the end of Q2.

6. Monitoring
During the time period post-course completion and pre-review, John will bi-weekly send his work metrics to his engineering lead so we have a real-time insight to his progress, and can give both positive and constructive feedback that will help John’s performance by the time of review.

7. Reviews
The review that will take place will focus on John’s work metrics before the course, and what they look like in the 3-months after the course. Improvements that show positive signs will help John’s argument that he is still a valuable asset to the team.

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