A Performance Improvement Plan addresses an employee’s shortcomings and outlines strategies to strive for higher results.

A Performance Improvement Plan (PIP) aims to help employees improve their productivity and meet the standards of their organization.

For example- A PIP could outline the specific skills or training the employee must obtain or explain how their behavior needs to be modified. In either situation, it would explicitly set out what steps must be taken by the employee to make progress.

The manager of an employee creates a PIP which is submitted to HR and comes with a timeline, typically between 30-90 days. This plan outlines what must be achieved and the consequences if the employee fails.

This blog will help you better understand how to measure productivity of an employee on a PIP effectively.

Top 3 Benefits of Performance Improvement Plan (PIP)

1. Enhances individual performance 

PIP is a great way to enhance individual (underperformers) performance by providing employees with meaningful goals, guidance, and feedback on their progress. The PIP helps employees understand their responsibilities and set goals that align with the company’s overall objectives. It also provides employees with regular feedback on how they are doing and offers coaching support from supervisors. 

2. Improves company culture

Performance Improvement Plans can improve a company’s culture by providing feedback, direction, and clear expectations to underperforming employees, instead of letting them go. It allows companies to take proactive measures in recognizing areas of improvement while encouraging a productive, motivated workforce. 

Furthermore, it encourages the development of better working relationships between staff members, helping them to collaborate more effectively. This can result in increased job satisfaction for everyone involved and a healthier company culture overall.

3. Facilitates more efficient workflows 

Performance Improvement Plans (PIPs) can help facilitate more efficient workflows and processes by setting clear objectives and expectations. They also enable organizations to identify weaknesses in current operations and find ways to increase efficiency

PIPs also encourage employees to take ownership of their roles and strive for higher performance, thus enabling the organization as a whole to reach its goals faster.

What To Include In A Performance Improvement Plan (PIP)?

After conversing with the worker, their manager should create a preliminary performance improvement outline and forward it to Human Resources for evaluation.

Below Infographics depicts major points that you should include in a performance improvement plan:

Performance Improvement Plan

How To Create An Effective Performance Improvement Plan (PIP)?

 A successful PIP should focus on attainable goals, set achievable timelines, and document progress and setbacks. Here is a step-by-step procedure for writing a PIP:

1. Assess

Begin by assessing the current performance issues. Ask questions to clarify any areas of concern, consider input from supervisors and coworkers, and review existing job documentation or past performance evaluations as needed.

2. Define

Create SMART (specific, measurable, achievable, relevant, time-bound) goals that clearly define the expected outcome. These goals should be clear and tailored to address the individual’s weaknesses while giving them enough room for improvement within their capabilities.

3. Support

Identify any resources or assistance needed by the employee to meet the desired outcome of the PIP, such as additional training or one-on-one meetings with managers or mentors. Establish milestones so that progress can be monitored throughout the duration of the plan and give clear feedback on what needs improvement at each stage along the way. 

4. Communicate

Make sure all parties involved know what is expected from them during this process, and keep communication open about any changes in the timeline or plans for achieving desired outcomes. It helps build trust between employees and management, allowing both sides to collaborate effectively toward success rather than putting up barriers of resentment due to miscommunication.

5. Review & Revise

Finally, create a system to monitor progress towards improvement goals so that you can check in with employees periodically and ensure they’re meeting expectations on schedule. It will also provide feedback if additional help or guidance is needed during the process.

Follow-up question: How to measure the productivity of employees on PIP?

Read the next section to know the answer;

Workstatus-Manage your Time

Top 5 KPIs To Measure Productivity Of Employees On PIP

1. Average Performance Rating (APR)

APR allows employers to measure and evaluate the effectiveness of an employee’s performance and identify areas that may need improvement. It is important for employers to set realistic expectations, provide timely feedback and support, and reward outstanding performances when calculating this metric.

2. On-Time Completion Rate

The On-Time Completion Rate is an effective Key Performance Indicator (KPI) to measure employees’ productivity on PIP. This metric is calculated by determining the number of projects completed in the assigned time frame and comparing it with the total number of projects initiated during that period. 

It also measures how well the team and individual members perform against deadlines. Furthermore, it provides insight into the processes that can be improved or implemented to enable future project completion within deadlines.

3. Quality of Work

Quality of work takes into account the overall quality and accuracy of the employee’s work, including aspects such as accuracy, timeliness, efficiency, and more. It also allows for qualitative analysis of the work and identifies any issues that need to be addressed to increase productivity and improve performance.

4. Attendance and Punctuality

Attendance KPI measures the percentage of days an employee was present at work, while punctuality KPI measures how often they arrived on time or before the start of their shifts. Both these KPIs are important to monitor employee productivity, as having good attendance and punctuality are essential for employees to get their tasks done effectively.

5. Employee Engagement Score

Employee engagement score is a great KPI to measure the productivity of employees on PIP. It measures how emotionally committed and engaged employees are in their work, tasks, and objectives. This score helps identify whether the employees have a sense of purpose, job satisfaction, and motivation. 

Employee engagement scores can be monitored through various activities, such as surveys, interviews, observations, etc., to help managers assess the effectiveness of their management strategies.

You must be thinking.

Is there any way to automate the productivity management of employees on PIP?

The answer is Yes.

Read the upcoming section to find your answer.

Workstatus- An AI-Powered Business Productivity Software

Workstatus can help with productivity management for employees on PIP by providing comprehensive time tracking and employee monitoring tools. These tools can help managers gain visibility into their employee’s activities, allowing them to quickly identify where productivity is being lost. 

The detailed reports produced from the Workstatus platform provide data that can be used to create actionable plans and address issues related to efficiency, attendance, online behavior, and time management. 

Major Features:

In addition, Workstatus collaboration tools allow team members to easily share updates, discuss tasks, and collaborate on projects together, enabling better communication between all parties involved.

Get started now with your free trial here>>

Closing Thoughts

As a manager, finding an effective way to address any problems with an employee’s performance can be daunting. Simple conversations that can point out the issues and desired outcomes rarely prove successful and can leave staff unsure of what action to take next.

An organized performance improvement plan facilitates employees and managers to follow the predetermined criteria, and it simplifies the process of dealing with outcomes when those standards are not fulfilled.


Ques. What is a Performance Improvement Plan (PIP)?

Ans. A Performance Improvement Plan (PIP) is a document or program created by an employer to help identify areas where employees need to improve their job performance. It includes specific tasks, goals, and timelines the employee must meet to stay in their position and usually also involve regular progress reviews and guidance from their manager. A PIP can ensure that the employee and employer work towards the same objectives.

Ques. What are some of the ways to measure PIP?

Ans. You can use the following ways to measure PIP:

  • Track productivity metrics to determine efficiency gains
  • Analyze customer feedback surveys for improved satisfaction levels. 
  • Use data analytics tools to identify areas for improvement and optimization
  • Monitor the impact of changes on key performance indicators (KPIs). 
  • Track time-to-completion metrics for tasks and projects
  • Compare progress reports from different periods to gauge progress made

Ques. How can Workstatus help in improving the productivity of employees?

Ans. Workstatus is an employee performance management software to improve employee productivity by providing features such as time tracking, employee monitoring, and attendance management. The time tracking feature allows employees to track how much time they spend on a specific task, helping them focus and manage their time more effectively. 

Employee monitoring allows employers to identify areas where employees are wasting time or being unproductive, allowing employers to intervene when necessary. Finally, it also simplifies the process of setting up salaries, calculating payments, and keeping track of expenses.      

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