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A performance improvement plan is a tool to give an employee with performance deficiencies the opportunity to succeed. It can be used to address failures in meeting specific job goals or to eliminate behavior-related concerns.

Performance improvement plans are a necessary component of our businesses because finding the right employees is hard. Once we hire on a team member, it’s best for our business to keep them versus having attrition.

Be Specific.

Performance improvement plans should clearly define one to three areas of improvement.

If there are more than three areas to improve, I’d recommend thinking deeper about whether the employee is fit for the role.

Are you trying to have a fish climb a tree? If so, then it is not fair to your employee.

Be Direct.

In conversation, directly ask your employee if they understand the areas of improvement.

I recommend you ask them the following questions:

How would you rate your performance?
Are the challenges you’re having due to a lack of will or skill?
How would you make changes for improvement?
Are you getting the support you need?

Be Consistent.

Performance improvement plans need to be time bound and consistent.

Check-in dates for improvement need to be set in stone, and reviews for improvement need to be agreed upon.

It is the manager’s responsibility to maintain this plan. Whether you set bi-weekly or monthly check-ins, the tone will need to be consistent. Your employees should understand that achievement of their goals is necessary to avoid further consequences.

You can view many online resources and a sample template here.

If you find that the majority of your organization is on a performance improvement plan, then you need to look at your target setting or hiring benchmarks. If you’re an individual contributor and want to maintain a high level of performance, I recommend reading books on peak performance. I really like Steven Kotler’s book “The Art of Impossible.”

What have you found to be useful in performance improvement plans?

I’d enjoy hearing your strategies in the comments below or on a call.

We all work hard to keep our teams engaged. However, even when we do a great job at this, any employee can surprise you with a resignation letter when they receive a new job offer from another company.

Who got a new job offer?

If they are a lower or average contributor, then the decision is not so hard–let them go.

If they are a top performer or someone you had high hopes for, then this decision becomes more difficult.

Should you extend a counteroffer?

Most employees who accept a counteroffer only stay for another 6-12 months. If an employee is motivated at one time to look externally, they will look again. A HBR study cites that 71% of senior executives and 67% of HR leaders in the current company would question the employee’s loyalty going forward. This makes sense as loyalty is a component of trust and that is a tough emotion to battle.

If an employee comes to me with a new job offer to counter, then I wish them well and organize their departure as soon as possible. I never extend a counteroffer, but you have to decide what is right for you and your organization, so that there is consistency.

My Strategy

Very few employees will leave over salary increases alone; here is a great article from SHRM on this. I’ve found that when organizations have top performers bringing in new job offers, they have missed out on having career development conversations with their employees. The employee feels that the only way to further their career is to show their manager that someone else wants them.

The process that I promote in my organization is for employees to schedule a meeting with their manager to discuss their career especially before job shopping.

If I cannot provide the career path that’s best for the person, then I commit to helping them find their next job. This keeps them engaged as an employee and leaves a positive impression of the organization.

I know it sounds counterintuitive, but through this process, employees have gained a new appreciation for the company and stayed.

Have you found a successful approach to new job offers and counteroffers?

I’d enjoy hearing your approach in the comments below or on a call.

3 Tips for Performance Improvement Plans