Performance Improvement Plans

While all employers hope that all their employees will succeed in the workplace, when an employee’s performance is not meeting expectations, employers often turn to performance management strategies to address the issue. Two common approaches are Performance Improvement Plans (PIPs) and Progressive Discipline. While both aim to improve employee performance, they are distinct processes with different purposes and different scenarios when they should be used.

In this article, we will explore the key differences between PIPs and progressive discipline, helping you understand the purpose of each approach, when to use each strategy and the steps involved in implementing them. Whether you’re an employer, manager, or employee, understanding the differences between PIPs and progressive discipline is important to help you address performance issues effectively.

What is a performance improvement plan?

Let’s begin first by answering the question: what is a performance improvement plan? A performance improvement plan (PIP) is a tool used to address poor performance, which might involve an inability to complete tasks, meet expectations, or fulfill the essential duties of their role. Essentially, it’s a structured approach to help employees get back on track.

A PIP outlines specific areas where improvement is needed and provides clear guidelines, strategies, and a timeline for achieving those improvements. This typically involves setting measurable goals and offering support and resources to help the employee succeed. Afterall, your end goal here is to get the employee on the right track to be able to perform their role effectively.

PIPs are usually implemented for a set period, often 90 to 120 days, with regular check-ins to monitor progress and provide feedback. These check-ins are crucial for open communication and ongoing support.

At the end of the PIP period, employers evaluate the employee’s progress. If performance has significantly improved, the PIP may be concluded. However, if performance remains the same or even dips further, employers might consider extending the PIP, creating a new plan, or moving towards termination in extreme cases.

It’s important to remember that PIPs should be viewed as a supportive tool to help employees grow and develop, rather than simply a disciplinary measure.

What’s included in a performance improvement plan?

A well-structured performance improvement plan typically has four key components.

An explanation of the poor performance the plan addresses: This step clearly outlines the specific performance issues that you plan to address with the PIP. You should ideally be able to provide some examples of the performance issues and measurable data where possible. This helps the employee gain a clear understanding of the areas where they need to improve.
What actions the employee can take to improve their performance: This step will highlight actions the employee can take to improve their performance. Giving them set goals and a strategy on how they can go about achieving these goals. This might include attending training sessions, mentorship, or even just changing the way that they are currently approaching their work.
What tools, training, or other support the employee can expect to receive throughout the process: Here you will just outline all the support systems that are available to your employee throughout their improvement plan. It is important to show them that you are committed to their success and that you are giving them all the support they need to improve their performance.
The consequence of not successfully attaining the desired performance expectations: While you want to show them that you are committed to their success throughout the plan, it is also important to clearly state the consequences of not meeting the performance expectations outlined in the plan. This ensures transparency and sets clear expectations for employees and employers.

When should I use a performance improvement plan?

A PIP is best suited for performance issues, such as an employee regularly not hitting their required sales goals, failing to complete projects in a timely manner or just not producing work that is up to the standard of quality that you expect.

Essentially, a PIP might be necessary when an employee’s productivity, performance, or leadership abilities are causing concern. However, it’s important to remember that PIPs are specifically designed to address performance-related issues, not behavioral problems.

If you notice an underperforming employee, start by identifying the issue. Is it a lack of skills, knowledge, or resources? It could even be related to motivation or external factors. Once you have identified the issue, inform the employee by having an honest conversation where you clearly explain the concerns and expectations.

Providing additional support, such as online staff training or mentorship, can be very helpful in helping the employee improve. You should create an action plan to address the performance issues and give the employee a fair opportunity to improve to the required standard.

What if an employee was previously placed on a performance improvement plan?

t is not uncommon for an employee to complete a PIP then need another plan later, whether for similar or different performance issues. In some cases, an employee might successfully complete a PIP for an issue, only to encounter a different issue. In such situations, it’s crucial to take a step back and carefully assess the root cause of the recurring performance gap.

If the root cause for the new issue is different than the root cause identified for the last one, then it may be appropriate to initiate a new PIP. However, if the root cause remains the same, it raises a red flag. In cases of repeated performance failures with the same root cause, you might need to consider different approaches, such as progressive discipline or, in some cases, termination of employment.

Progressive Discipline

Let’s now discuss progressive discipline. While performance improvement plans address performance gaps, progressive discipline is the appropriate tool for dealing with employee misconduct. Misconduct involves intentional or negligent conduct . This can include actions like being late regularly, unauthorized absences, or violating company policies.

Serious misconduct is intentional and deliberate behaviour that is incompatible with maintaining the employment contract or poses serious and urgent harm to the business’s reputation, viability, or profitability, or to a person’s health and safety. Workplace violence, theft, and assault are examples of serious misconduct and could require progressive discipline.

Progressive discipline follows a structured approach, typically escalating in severity based on the frequency and seriousness of the misconduct. It might start with a verbal warning, then progress to written warnings, suspensions, and ultimately, termination in severe cases.

It’s important to distinguish between general misconduct and serious misconduct. The key is to apply progressive discipline fairly and consistently, making sure that the consequences are proportionate to the type of misconduct.

When should I use progressive discipline?

Progressive discipline is the go-to strategy when dealing with violations of workplace policies and procedures. Essentially, it addresses situations where an employee’s behavior deviates from the expected norms and standards of conduct.

Failing to follow procedures: This involves neglecting to adhere to set procedures and protocols. This could compromise the safety of employees or the quality of work. It could include anything from ignoring safety regulations to not following proper data entry procedures.
Unauthorized absences from work: This refers to taking time off without having it approved or authorized. This can cause disruption to workflow and show a lack of responsibility. This includes both unauthorized absences and failing to provide the correct documentation for sick leave.
Lateness: This involves arriving late to work, meetings, or other scheduled commitments regularly. Again, this shows a lack of professionalism and can impact productivity. It can mess up other peoples schedules and create a negative impression on colleagues and even clients.
Workplace harassment: This can be in the form of behaviour that creates a hostile or intimidating work environment. Harassment comes in many forms, such as verbal, physical and, in extreme cases, sexual.
Wilful neglect of duty: This refers to when someone willing neglects tasks that have been assigned to them. Basically someone not doing their job. This can obviously be dangerous in the case of safety officers but can also heavily impact the perception of the business if someone neglects work that is for a client.
Misuse of company equipment: This involves using any company equipment or property without prior authorization. This could also be a situation where someone is misusing things such as company vehicles, company computers or company funds.

What is the progressive discipline process?

Similarly to a PIP, a traditional progressive discipline policy follows four steps:

Verbal warning; This step involves the initial formal conversation between employer and employee. Usually this is where the specific misconduct is being addressed, and what needs to be done to see improvement. In some cases you can go over company policies or procedures that have been broken.
Written warning: If the misconduct was of a more serious nature, usually a written warning will be issued to the employee. Similar to the verbal warning, in this step you will address the misconduct at hand, the consequences if this behaviour continues and what needs to be done going forward. This is a bit more serious than a verbal warning and should be treated as such and only issues in serious misconduct situations.
Final written warning and possible suspension: If someone is given a written warning and their behaviour does not improve, with multiple misconducts happening, a final written warning may be issued. This is often accompanied by a suspension period without pay. This emphasizes the seriousness of the situation and provides a final opportunity for the employee to demonstrate a commitment to change.
Termination: If the employee fails to improve their behaviour or continues to engage in misconduct, termination of employment may be the final step. This decision is typically made after careful consideration and documentation of the progressive disciplinary measures taken. Keeping records of all prior warnings is very important so that termination is justified if questioned.

What is the difference between PIP and progressive discipline?

As we mentioned at the start, understanding the difference between a performance improvement plan and progressive discipline is pivotal in understanding what actions need to be taken. While both aim to address workplace issues, they target different areas and serve different purposes.

A PIP focuses on performance problems, which are often a result of a lack of training, skills, or understanding. Poor performance can be solved through coaching and mentoring, which is the primary goal of a PIP. It is not a disciplinary step or groundwork to terminate an employee with cause, rather, it is an opportunity to work with an employee to address concerns about their performance.

Progressive discipline, on the other hand, deals with misconduct, which involves deliberate violations of workplace policies or standards of behavior. These violations can range from failing to follow procedures to engaging in harassment or other serious offenses.

While it may affect their work, misconduct is separate from the performance of the actual work. Misconduct requires progressive discipline, and it sometimes leads to termination.

A practical approach to understanding the difference

Sometimes it can be difficult to differentiate between underperformance and misconduct. Here’s a simple way to spot the difference: you may be able to train away poor performance, but you can’t train an employee to not lie or steal from you. Being late isn’t doing the job poorly and lying isn’t doing the job poorly—these are examples of not doing the job, period.

In essence, PIPs represent a genuine effort to help employees improve their performance and reach their full potential. Progressive discipline, on the other hand, addresses behavioral issues and aims to ensure compliance with workplace standards.

If your concerns are not about performance but rather a general dissatisfaction with the employee, it’s important to be honest with yourself and consider alternative solutions, such as a termination strategy, rather than using a PIP as a stepping stone.

Get performance management advice from an HR expert

While performance management and progressive discipline are different, both can be awkward and emotionally draining. If you need support through either process, get instant access to our team of seasoned HR experts. Or, download our free guide, Deciphering Progressive Discipline Guide, and get started today.

Live HR Advice offers unlimited on-demand phone support by our award-winning team of HR professionals who have experience across a range of areas and industries. Whatever HR concern or problem you are facing, our advisors can tailor recommendations and strategies to your situation and workplace.

If you want to explore the components of effective PIP planning and the necessary steps to prepare a successful PIP yourself, download our free Performance Improvement Plan (PIP) Checklist. It includes a Performance Improvement Plan Form template that you can use to start creating and implementing effective PIPs that drive change today!