Performance Improvement Plan for Under-performers

When you have underperformers on your sales team, the quick fix would be to let them go and find a replacement. However, a Sales Performance Improvement Plan or sales PIP should be the first intervention.

For those unfamiliar with this term, a PIP is simply a list of steps employees can take in order to improve their performance. This plan outlines the period of time for improvement, addresses the problem or problems the representative is facing. Keep in mind that a PIP is not designed to fix any behavioral problems. Concerns about inappropriate actions or a bad attitude should be handled in a different way.

A sales PIP also outlines how success is going to be defined and the timeline to achieve that success. This is a fair way of giving employees a chance to improve and gives them fair warning about where they stand and what they need to improve in order to avoid termination. Not all PIPs are created equal so there are a few methods that managers can use to have success.

Keep in mind that even with a PIP, termination may end up being the end result. After all, letting go of a consistently underperformer can end up saving thousands each year. It's still important to balance a need for termination with the opportunity to improve, especially for an eager employee. Managers who want to keep their staff and improve morale should use PIPs as a helpful tool.

What's in a PIP?

The key components and process of a PIP include the following:

• Before the PIP: Manager assessment of the employee

• Creating the PIP: Use SMART design to build the plan

• During the PIP: Team effort and regular check-ins

• Ending the PIP: Closing out the process with a thorough explanation

Manager Assessment

Before starting the process, managers should ask themselves if they have any biases against the employee. Supporting the employee's success is a crucial component. Managers should be aware that PIPs require team effort and engagement so always start off by removing bias.

The assessment of the employee should look at the root cause. Why exactly is this employee underperforming? The origin could be a lack of training, poor understanding of explanations, personal problems, or even a lack of incentives. If the problem is misconduct or poor attitude, this is outside the scope of a PIP. Those problems are best managed with disciplinary actions or even termination.

Managers may also want to consider if there are other options to resolve the concerns. It may be better to change an employee to a different team or department. Working with HR staff is a good way to start the process.

PIPs should follow the SMART criteria:

• Specific – target a specific area for improvement

• Measurable – quantify or at least suggest an indicator of progress

• Assignable – specify who will do it

• Realistic – state what results can realistically be achieved, given available resources

• Time-related – specify when the result(s)

In order to avoid generalities, a PIP should state expectations using the employee's job description and comparing it to their recent performance. When documenting where the employee fell short, always use specific examples.

The goals should also be measurable. There may need to be goals for leads per week, in-person visits with clients, or whatever metrics are appropriate for the employee. They also need to be achievable. If making goals, they need to be realistic for a normal workday and workweek. HR can help in this area by reviewing the PIP to ensure that they are reasonable.

Finally, PIPs need to be relevant to the employee's job description and time-based. PIPs usually are completed within 30, 60, or 90 days. There should also be milestones throughout the timeline. A manager can draft a PIP and then discuss it with the employee to ensure that it's understood and reasonable. After agreement is reached, all parties will sign the document.

Team Effort and Check-ins

During the PIP, the employee will work to deliver on their goals and provide any insights about the reason why they haven't met goals previously.

The manager also plays a role during this time period. They should address the root cause of the performance concerns and work to keep morale high. Being on a PIP can be discouraging so managers should be a source of encouragement. Always keep a PIP confidential as well.

Closure or Extension

At the end of the PIP, the manager and employee should assess whether the metrics have been met. If they have, then work continues as usual. However, if not, the manager can terminate, demote, or move the employee. If the employee appears to be making good progress despite not missing all their milestones, the manager can choose to extend the timeline.

Final Thoughts

PIPs are a great tool for sales teams as their work is measurable and has clear targets. Its a great tool that can be used to develop milestones for employees who need to improve their performance. They require a team effort and managers being involved in their employee's success.

However, they don't eliminate the need to terminate some employees. After reasonable avenues have been pursued, managers may still need to terminate underperformers. While this process can be slightly costly in the short-term. it's better to let a poor hire go than keep them on and damage team culture.

If you are responsible for building an organization and having trouble finding TOP TALENT click the link for info on my Talent Magnet System https://www.lincksearch.com/lsa-talent-magnet