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Performance Improvement Plan
I need a performance improvement plan for an employee who has been underperforming in their sales targets for the past three months. The document should outline specific goals, provide a timeline for improvement, and include support resources available to the employee, with a review period set for 60 days.
What is a Performance Improvement Plan?
A Performance Improvement Plan helps managers and employees work together to address workplace performance issues in New Zealand workplaces. It's a structured document that sets clear goals, timelines, and support measures to help staff meet their job requirements when they're falling short of expectations.
Following NZ employment law principles of good faith, these plans typically run for 30-90 days and include specific targets, regular check-ins, and training opportunities. The goal isn't to punish - it's to give employees a fair chance to succeed while protecting the organization's interests and meeting obligations under the Employment Relations Act.
When should you use a Performance Improvement Plan?
Use a Performance Improvement Plan when an employee's work consistently falls below expected standards, but there's potential for improvement. Common triggers include missed deadlines, poor quality work, or behavioral issues that impact team performance - situations where informal feedback hasn't solved the problem.
The plan works best when introduced early, before issues become severe. Under NZ employment law, it demonstrates good faith efforts to support staff while protecting your organization from unfair dismissal claims. It's especially valuable when managing skilled employees who need specific guidance to meet role requirements, or when addressing cultural fit issues that affect workplace harmony.
What are the different types of Performance Improvement Plan?
- Basic Performance Plans: Focus on core job duties and metrics, perfect for entry-level roles or straightforward performance issues
- Behavioral Improvement Plans: Address conduct, communication, or cultural fit concerns while meeting NZ workplace standards
- Skills Development PIPs: Emphasize training and upskilling needs, often used in technical or professional roles
- Leadership Performance Plans: Target management capabilities and team dynamics for supervisory positions
- Project-Based PIPs: Specifically designed for project delivery roles, focusing on deadlines and deliverables
Who should typically use a Performance Improvement Plan?
- HR Managers: Lead the creation and oversight of Performance Improvement Plans, ensuring compliance with NZ employment law
- Direct Supervisors: Help identify issues, set targets, and conduct regular check-ins throughout the PIP period
- Affected Employees: Must engage with the plan's requirements, meet set goals, and participate in progress reviews
- Union Representatives: May participate in PIP discussions when representing union members
- Senior Management: Review and approve PIPs for critical roles or when termination might result
How do you write a Performance Improvement Plan?
- Document Past Issues: Collect specific examples of performance concerns, including dates and impacts
- Review Job Description: Compare current performance against role requirements and KPIs
- Set Clear Goals: Define measurable, achievable targets aligned with NZ workplace standards
- Timeline Planning: Create realistic deadlines for improvement milestones, typically 30-90 days
- Support Resources: List training, mentoring, or tools needed for success
- Review Process: Schedule regular check-ins and document the feedback method
- Legal Compliance: Ensure the plan follows good faith requirements under NZ employment law
What should be included in a Performance Improvement Plan?
- Employee Details: Full name, position, department, and immediate supervisor's information
- Performance Concerns: Specific examples of issues that triggered the PIP, documented objectively
- Expected Standards: Clear description of required performance levels linked to job description
- Improvement Actions: Detailed steps the employee must take to meet expectations
- Support Measures: Resources, training, and assistance provided by the employer
- Timeline Section: Start date, review dates, and completion date of the plan
- Consequences Statement: Potential outcomes if performance standards aren't met
- Acknowledgment: Signatures from employee, manager, and HR representative
What's the difference between a Performance Improvement Plan and a Performance Review Document?
A Performance Improvement Plan differs significantly from a Performance Review Document in both purpose and application. While they're both employment-related documents, they serve distinct functions in New Zealand workplaces.
- Purpose and Timing: PIPs are reactive interventions for specific performance issues, while performance reviews are regular assessments of overall work quality
- Legal Implications: PIPs can be precursors to disciplinary action, requiring strict compliance with employment law, whereas reviews are standard HR processes without immediate legal consequences
- Duration and Structure: PIPs have defined timeframes (usually 30-90 days) with specific improvement targets, while reviews are typically annual or semi-annual evaluations
- Documentation Focus: PIPs document specific performance gaps and improvement steps, while reviews cover broader career development and achievements
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