Now, before you roll your eyes and dismiss it as pointless HR red tape, hear me out. When done right, a performance improvement plan isn’t just a pile of paperwork your People and Culture team uses to prop up a wobbly table. Nope, it’s a lifeline for getting your struggling team member back on track. And let’s be honest, that makes life easier for everyone. 

So, what exactly is a performance improvement plan? 

It is your go-to tool for shining a light on those tricky areas of underperformance, laying out clear expectations, and crafting a roadmap for improvement. But here’s the kicker—many managers see it as a burden, not the golden opportunity it really is. 

Especially for those of us managing in rural and regional Australia, where resources might feel a bit scarce, mastering the art of creating a solid performance improvement plan is a game-changer.  

A well-crafted performance improvement plan not only helps the employee grow but also boosts team dynamics and overall productivity. But approach it carelessly and you might just end up back at square one, or worse, get pinged by Fair Work for not playing fair. 

How to create a performance improvement plan that works 

1. Set Clear Objectives

Where most managers trip up is in establishing clear expectations. You need to be specific! What exactly do you want to change? What does success look like? 

Instead of fuzzy goals like ‘improve communication’, get concrete. Aim for something like ‘respond to customer inquiries within 24 hours’ or ‘attend two team meetings each month’. Clear objectives give your team a roadmap, preventing costly and problematic misunderstandings later. You don’t want a situation where they think they’ve nailed it while you’re left scratching your head. 

Pro tip: Think S.M.A.R.T—Specific, Measurable, Achievable, Relevant, and Time-bound. Nail these, and you’re setting your employee (and your team) up for success. 

2. Involve the employee

Now, let’s talk about the elephant in the room. For the person not cutting it, a performance improvement plan can be super demoralising. So, flip the script and involve them in the process. Instead of laying it on them out of the blue, have a straightforward chat about the areas where they’re struggling and encourage them to share their perspective. Who knows? You might learn something that helps explain their challenges. 

Taking a collaborative approach instead of barking orders fosters trust, ownership and commitment as well as opening the door for honest dialogue. You’re not just telling them what to do; you’re paving the path for them to engage with the plan.  

Pro tip: A successful performance improvement plan is a partnership aimed at supporting success. 

3. Provide Resources and Support

Identifying what needs to change isn’t the only work of the performance improvement plan; it’s also about equipping your employee with the right tools and resources for improvement. Whether it’s training sessions, coaching, or finding a mentor, make sure they know what’s available.  

4. Establish a Timeline

Setting a timeline is crucial. It creates a sense of urgency and keeps everyone accountable. Outline key milestones and schedule regular check-ins, like at 30, 60, and 90 days. These touchpoints allow for adjustments along the way, ensuring the employee stays on track and feels supported. 

5. Document everything

While the performance improvement plan is current, keeping track of all discussions and agreements is a must. This documentation acts as a reference for both you and the employee and can save you from future headaches. Plus, it provides a valuable history of their journey for future performance reviews. 

6. Celebrate progress

Don’t forget to recognise achievements, no matter how small! Celebrating wins can significantly boost an employee’s motivation. As they make strides toward their goals, take a moment to acknowledge their progress. Whether it’s a shout-out in a team meeting or a quick note of appreciation, these little gestures create a positive environment that encourages ongoing improvement. 

7. Be prepared for different outcomes

Let’s face it—sometimes, despite all your efforts, a performance improvement plan might not lead to the desired success. If that happens, handle the situation with empathy and professionalism. It’s during these tough moments that your organisational values shine through and reflect your character. 

A final word on performance improvement plans

Implementing a performance improvement plan can feel overwhelming, especially if you’re new to management. But if you shift your mindset and see it as a proactive tool for development instead of a punishment, you’ll transform the experience for both you and your team member. 

With a thoughtful approach, you can create an environment that encourages growth, trust, and improvement, benefiting your whole team, your clients and organisation. Remember, effective management is all about empowering your team to succeed, and a well-thought-out performance improvement plan will achieve that!