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Performance-action plans -- sometimes referred to as performance-improvement plans, or PIPs, are plans that have specific goals for employees whose performance doesn't meet the company's standards. When an employee's regular performance appraisal reveals significant room for improvement, a performance-action plan is a detailed plan of action for helping the employee get back on track.
Review the employee's performance-appraisal results and the documentation the supervisor relied on to prepare the employee's performance appraisal for the evaluation period.
Gather productivity logs, attendance records and disciplinary reviews, as well as any self-evaluations the employee completed as part of the appraisal process. Consult with the supervisor who evaluated the employee to determine the employee's areas for improvement.
Categorize the deficiencies according to the company's performance standards and expectations.
For example, if the employee isn't producing the quantity of work required to meet expectations, use one section of the performance-action plan to address that deficiency.
Likewise, if the employee's absences exceed the maximum days allowable -- except for personal or medical leaves, such as Family and Medical Act leaves of absence -- address that separately in the performance-action plan.
List the areas where the employee's performance is sub-par, giving each a separate section.
Following each performance area, describe specific steps the employee must take to improve her performance. For example, if she's a sales representative who has a revenue goal or sales quota to reach, quantify the goal so as to leave no ambiguity about what it takes to succeed on the performance-action plan.
If the employee needs to achieve a better attendance record, describe the process the employee has to use for alerting her supervisor to unexpected absences and if there's any kind of documentation necessary to return to work after an absence, such as a doctor's note.
Set follow-up dates for reassessing the employee's performance and work them into the plan. If you believe the employee needs just 30 days to improve, suggest follow-up meetings to discuss milestones and progress every 10 days. If 60 days is a more appropriate time to witness improvement, suggest follow-up meetings with the employee every two weeks.
Describe the consequences of not meeting the performance-action plan's goals.
It may not be wise to indicate consequences for not meeting certain milestones. That's because it's conceivable that an employee might fail to meet the one or two of the milestones in the plan yet complete the performance-action plan with flying colors.
Therefore, address consequences for not meeting the overall performance goals. In serious situations, it's often a performance-action plan that's the last step before termination. If failure to meet the plan's goals will result in termination, make sure the plan document clearly states that.
Tip Include signature lines for the employee, the employee's supervisor and a human-resources staff member, if necessary. Warning Always discuss a performance-action plan with the employee in a face-to-face meeting.
Plans like these generally have serious consequences related to continued employment; therefore, it's critical that the employee understands what the plan requires and what affect the plan has on the employment relationship.Plans for another hotel on a former peninsula fast-food site are up for review this week.
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Lower-level staff members, if you plan to hire any, are important enough to mention in your business plan because they will be essential to the smooth functioning of your business.
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