Business

Outline The Consequences at Business

Your PIP must be crystal clear on what happens if the set expectations aren’t met. This may be a loss of certain privileges, temporary job suspension or, as is most common, termination of employment. Of course, a PIP is not your only option. If your organization is exceptionally good at ongoing feedback, you may not need to use one at all. Lisa Sterling, EVP and chief people officer of human capital management technology company Ceridian, said her company favors constant coaching and learning opportunities over PIPs.

“We have found PIPs to be used as a way for managers to communicate difficult feedback,” Sterling said. “If you train your leaders to provide ongoing feedback and deal with performance issues as they arise, the need for a PIP is gone.”

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However, in some cases, a PIP is the best course of action to help get an employee back on track. If you decide to implement one for one of your staff members, here’s what you need to know about making it fair and beneficial for both parties.

While the employee does need to understand the gravity of the situation, focusing too heavily on the negative consequences will only further discourage and demotivate him or her. Instead, David said your employee should understand that you are implementing the plan because you are genuinely invested in his or her success at the company. “Make it clear that your intent is that through this process, they will be able to be a part of the team going forward,” he told Business News Daily. “The PIP has to be specific and allow for a reasonable chance for success.”