As we enter the new year, setting those New Year’s resolutions, employee goals, and development plans remember, Performance Improvement Plans (PIP) and a Personal Development Plans (PDP) are often thought to be the same, although both focus on performance improvement, the purpose for each is very different.
Performance Improvement Plan (PIP) is a tool used to give an employee with performance deficiencies the opportunity to succeed. The plan identifies the employee’s performance issue(s), sets performance goals, and outlines a plan for reaching those goals. A PIP is used to resolve workplace productivity issues for employees who are not meeting expectations. A performance improvement plan shows the employee that the organization understands their current challenges and that they are committed to helping that individual improve their performance.
It is better for an organization to invest time and resources into helping an employee improve their performance than it is to terminate them. The costs and time associated with PIPs àre minimal compared to what it would cost to recruit and train a replacement for that employee.
A PDP is a tool to help employees who are meeting or exceeding expectations to grow their talents and abilities even more.
Essentially, a PIP gets a poorly performing employee to the minimal required performance levels, while a PDP outlines opportunities so good employees get better.
Need help with either of these plans? Give us a call, we can help you through them all.
-Elizabeth Callahan