A fair chance through a structured performance improvement plan
Every employer will face this at some point: one of your employees is not performing as expected: targets are not being met, agreements are not followed, or there are behavioural issues. These are challenging situations.
It is important to act promptly, carefully, and transparent as an employer. If previous conversations, support, and feedback do not lead to improvement, starting a performance improvement plan is the next step.
A performance improvement plan is an important tool that gives underperforming employees a fair and realistic chance to improve. It contributes to transparency, carefulness, and responsible employer practices.
A positive approach, clear agreements, and appropriate support increase the chances of maintaining a successful working relationship. At the same time, a carefully conducted improvement process is crucial if the desired improvement does not occur and termination of the employment contract becomes unavoidable.
Performance improvement plan checklist
This checklist helps you approach a performance improvement plan in a structured way. All steps - from discussing performance issues to possibly terminating the employment contract - are included:
1. Announce the start of the improvement plan
- Discuss the employee’s performance and clearly state that it is insufficient. A common mistake is waiting too long to start a performance improvement plan, allowing the situation to escalate.
- Specify the areas of concern - both in content and behaviour - with concrete examples. Ideally, this should not be a surprise to the employee as the issues should have already been addressed.
- Ask the employee for their response to the points of concern. This will also give you insight into why their performance is lacking. As the employer, you set the standard for expected performance.
- Offer guidance and support to help the employee improve, such as coaching, training, or mentoring. Invite the employee to suggest support they feel would help.
- Explain that a performance improvement plan will be created with a start and end date and that progress will be regularly evaluated.
- Make it clear that if performance does not improve, the employee may not be able to continue in the role.
- Document this conversation in writing.
2. Create the improvement plan
- Clearly formulate the desired improvements using the SMART criteria: Specific, Measurable, Acceptable, Realistic, and Time-bound.
- Include start and end date - generally set for a period of 6 to 12 months, taking into account the duration of the employment contract - and agree on evaluation moments. Make sure all agreements are followed.
- Document support measures in the plan.
- Invite the employee to contribute to the plan; it is even better if they draft the initial version.
- The employer is responsible for creating the plan and ensuring that the process is conducted properly, giving the employee a real and fair chance to improve.
3. Evaluate during and at the end of the improvement plan
Mid-term evaluations
- Regularly evaluate the progress on the agreed points of improvement and document everything in writing.
- If halfway through the process little or no progress is evident, state this explicitly. If no extra support has yet been provided, discuss whether this is necessary.
Final evaluation
- Improvement achieved and performance meets expectations: end the performance improvement plan and continue working together. Confirm the successful conclusion of the plan in writing.
- Improvement evident but not sufficient yet: if improvement is likely to reach the expected level soon, extend the performance improvement plan for a defined period. Confirm this in writing.
- No or insufficient improvement: despite efforts, performance is still below the required standard. Discuss with the employee that the desired outcome was not achieved and that the employee is considered not suitable for the current role. See step 4.
4. Explore reassignment options if improvement is lacking
- Investigate whether the employee can be reassigned within the organisation to a suitable role.
- If reassignment is not possible, explain why; e.g., no roles at the same level, no vacancies.
- Record the outcome in writing.
5. Proceed to end the employment contract if no suitable role is available
- If reassignment is not feasible, ending the employment contract is the next step.
- Often, a mutual agreement is reached through a settlement agreement, outlining the conditions for terminating the employment contract. Get legal advice when drafting or reviewing such agreements.
- If no agreement is reached, you may request the court to terminate the employment contract.
- In court proceedings, documentation - such as meeting notes, the improvement plan, and evaluations - is crucial to support the request for termination.
Questions about the checklist or need help with a performance improvement plan?
Do you have questions about applying this checklist, or are you dealing with a specific situation where you are unsure of the right approach? Please feel free to contact me. These performance issues are often quite complex. A careful and thoughtful approach tailored to the specific situation truly makes a difference, for both the employee and the organisation. I would be happy to support you in setting up and carrying out a performance improvement plan, as well as with potential next steps, such as drafting or reviewing a settlement agreement. I am happy to think along with you.