When and how are Performance Improvement Processes (PIP) done?

What Is a Performance Improvement Process (PIP) and Why Implement One?

A Performance Improvement Process (PIP) is a formal, structured approach used to address ongoing employee performance concerns. It outlines clear expectations, measurable goals, and provides the employee with the necessary support to improve. The goal of a PIP is to give employees a fair opportunity to meet performance standards before further action is considered. When implemented correctly, a PIP promotes workplace accountability, supports productivity, and aligns with legal and ethical best practices.

Important: A PIP should never be initiated without first contacting Horizons. As the Employer of Record (EOR), only Horizons has the legal authority to issue and manage PIPs. This ensures the process remains fully compliant with local labor laws.
To initiate a PIP, please reach out to us at support@joinhorizons.com.

When to Implement a Performance Improvement Process

Consider initiating a PIP in the following situations:

• Consistent Underperformance: When the employee repeatedly fails to meet performance expectations, despite prior informal feedback.

• Lack of Improvement: If there is no progress after coaching or performance discussions.

• Skill or Knowledge Gaps: When performance issues stem from a lack of specific skills or knowledge that could be improved with support.

• Behavioral Issues: When the employee’s behavior negatively affects team dynamics or productivity, and prior corrective efforts have failed.

How to Implement a Performance Improvement Process

Horizons will guide you through the following steps when implementing a PIP:

1. Document the Issues: Use clear, factual examples to outline the specific performance concerns.

2. Set Clear Objectives: Establish SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).

3. Provide Support: Include training, mentoring, or other resources necessary for the employee to succeed.

4. Monitor Progress: Conduct regular check-ins to review progress and provide feedback.

5. Communicate Consequences: Clearly explain what actions may be taken if objectives are not met.

6. Document the Process: Maintain detailed records of communications, support offered, and actions taken.

7. Conclude the PIP: At the end of the timeline, evaluate the employee’s progress and determine the appropriate next steps.

What Is a Typical Timeline for a PIP?

A PIP typically spans 30 to 90 days, depending on the complexity of the issues and the employee's role:

• Preparation (1–2 weeks): Identify and document issues, draft the PIP.

• Implementation (30–90 days): Conduct regular progress reviews (weekly or bi-weekly).

  • 30 days: For less complex or urgent performance concerns.

  • 60–90 days: For more significant issues, such as skill development or behavior change.

• Final Review: Assess progress and decide whether the employee has successfully completed the PIP, requires an extension, or if further action is necessary.

Disclaimer

Please note: In some countries, a Performance Improvement Process (PIP) may not be considered a valid or legally recognized basis for termination. Local labor laws vary significantly, and using a PIP to justify termination without proper legal context could result in non-compliance or legal challenges. Horizons will advise on the appropriate approach based on the specific legal framework in the employee’s country.