Performance improvement is a key part of performance management, encompassing everything from goal-setting to performance improvement plans (PIPs). It allows you to support underperforming employees in meeting their work expectations, while tracking each employee’s progress over time.
But many HR professionals use PIPs to address individual performance issues without zooming out to see the bigger picture. A performance improvement process is a more strategic framework that identifies the root cause of performance issues and tracks them over a longer timeframe.
Here’s how the performance improvement process differs from a PIP, and how modern HR teams can use automation to set and attain high performance standards.
A performance improvement process is a continuous approach to addressing employee performance issues at an organizational level. It’s a strategic process, overseen by the human resources team, that requires participation from employees and managers. It typically includes the following five steps:
An employee performance improvement plan (PIP) is a formal document that’s used to address an individual employee’s behavior. It identifies the ways in which an employee is failing to meet expectations, provides constructive feedback, and explains what will happen if they don’t improve their work performance.
An effective PIP process is usually time-bound, giving the employee 30, 60, or 90 days to meet expectations or face disciplinary action.
A performance improvement process takes a broader approach to addressing poor performance. It uses multiple tools to track performance levels, proactively identify performance gaps, and set measurable goals to support employee success.
Traditional performance improvement plans are intended to address specific issues, and even regular performance reviews may only happen quarterly or annually. An ongoing performance improvement process allows for continuous improvement year-round, so employees and managers can work together to achieve desired outcomes.
A regular feedback process helps build trust with employees and supports their career development, reducing turnover and increasing employee engagement.
Employees can focus on clear goals, rather than feeling at risk of demotion for poor performance, enhancing job satisfaction and well-being.
HR professionals can shape the performance improvement process, but ultimately, its effectiveness comes down to how employees and managers engage with it. Here are five best practices to help you implement and oversee the process:
HR technology trends are increasingly pointing in the direction of centralized, automated software. Cloud-based tools help to streamline the performance improvement process, reminding managers when it’s time to check in and making it easy for employees to participate in continuous performance management.
Plus, centralized tools bring multiple HR functions into one place. Pulpstream allows you to track employee performance metrics from a real-time dashboard, coordinate leaves of absence with performance management, and provide a personalized employee experience, from onboarding to offboarding.
Personalization is important, but so is standardization. Using performance improvement plan templates gives managers discretion with individual employees, while adhering to consistent standards to ensure fair treatment and professionalism.
Remember, an employee’s PIP should be based on their job description and outline the specific ways in which they’re failing to meet work expectations. For serious cases of misconduct or insubordination, use a disciplinary action form instead.
The performance improvement process works best when you have clear goals and timelines for achieving them. SMART goals are:
Managers can give feedback every time a project is completed or a goal is met, giving employees a chance to celebrate milestones rather than wait anxiously for an annual review. Goals can change, of course, but being transparent about them helps keep employees on track instead of feeling like the goalposts are constantly shifting.
Modern HR tech is revolutionizing employee relations by providing real opportunities to support your employees’ career growth and well-being. From personalized onboarding training to tailored professional development, your performance improvement process should treat each employee like an individual with their own career trajectory.
Personalized mentorship, employee recognition programs, and other forms of career support help to keep employees engaged and invested in your organization.
Finally, performance improvement is a collaborative process, and sometimes, it’s the employee’s turn to give feedback. From self-assessments to 360-degree feedback, a culture of open communication flips the script and acknowledges that managers can benefit from an employee’s insights too.
And when things don’t work out, exit interviews give you a chance to learn what you could have done differently to better support your departing employee.
There are at least three different ways to measure the success of your performance improvement process: at the individual, team, and organizational levels.
Monitor individual employee metrics, like attendance, accuracy, and work efficiency, and track how they do or don’t change after implementing a performance improvement plan. Use skill assessments to identify areas for improvement and opportunities for growth, and one-on-one check-ins to gain insight into an employee’s progress.
Use key performance indicators (KPIs) to track collective team performance. Tools like Pulpstream can help you monitor workplace productivity at the team level with built-in dashboards and real-time reports informed by quantitative and qualitative data.
Surveys, peer reviews, and interviews can help put things into context, such as how team morale is impacting project completion rates.
At a higher level, HR teams can measure the impact of performance management on operational efficiency and alignment with organizational goals. Employee retention, job satisfaction, and other HR data analytics can all provide signals that your performance improvement process is working — or not.
If it isn’t, reevaluate your strategies and change your approach. Consider using HR automation to transform backend processes and focus on what matters most.
The performance improvement process is a comprehensive approach to setting goals and managing employee performance. While it may use a performance improvement plan (PIP) to address individual issues, it goes beyond that to implement a cycle of regular feedback, enhancing collaboration between managers and employees.
HR teams can use a cloud-based platform like Pulpstream to manage employee relations and streamline the performance management process. From performance review templates to an automated disciplinary process, Pulpstream helps managers navigate difficult situations and keep your documentation all in one place.
Request a demo today to see its capabilities in action!