[Part 2] Performance Management Systems: PIPs and Improving the Framework

Assess the Existing Foundation: Critical Pre-Reqs for Success

Even the most excellent system will not work without these criteria being met first. 

1. Strong, trusting relationship between management and direct reports

   Feedback will not be well-received or taken seriously if both parties do not trust each other. This includes knowing each other both professionally and personally. This does not mean you have to hang out in your free time, but you must feel comfortable talking to each other about personal life as this can impact performance and the ability to talk about difficult topics in general.

2. Clear expectations regarding roles and responsibilities 

   This is most effective during the onboarding process - you should be able to take the criteria from your job descriptions and translate these to a 30/60/90 day onboarding plan.

3. Learn the law, love the law, be one with the law

   If you don’t know the legal nuances of operating as a human in the workplace, hit the books immediately. Understand all of the federal, state, and international laws pertaining to employee protections.

4. A company framework for continuous feedback 

   Assess your current framework or start building this into your 1:1 meetings. This works best when 1:1s are scheduled on a weekly basis and is added as an additional agenda section to routinely review.

   
   

Defining “Good”: Core Components of an Effective and Compliant Performance Management System

1. The process clearly shows through both written and verbal communications + action, that the intent of the company is to make a genuine effort to help employees improve. This means that management is providing the employee with: 

   • Continuous and concise feedback on a scheduled, anticipated, and mutually agreed upon weekly or bi-weekly basis

   • Relevant and appropriate support mechanisms

     • Gut Check: Ask yourself “if both parties are committed to the common goal of improving performance and continuing the employment relationship, will these tools be the right ones to strengthen the weak points that are necessary to achieve this goal?”

2. Leadership and management are provided with ample training to decrease risks of legal missteps 

   • Remember, both the company and the individual can be help liable in the event of compliance violations

3. The process is communicated to the entire existing team prior to official implementation, or if starting at the ground floor, communicated to all new hires as a part of onboarding communications

   • Update your employee handbook, code of conduct(s), onboarding documentation, trainings, etc.

   • Cover all of your bases when communicating verbally and in-writing (email, meetings, Slack/async communication tools, knowledge base, etc.)

Implement the Framework

A visual of the 6-month performance management system summary for improving employee performance.

The Three Phase Process: Performance Improvement Plans

1. Informal (Investigative Period)

   • Compliance Flag: Ensure your management team is aware of illegal vs. legal questions when conducting investigative conversations. Keep your unconscious bias in check. 

   • Suggested Communication Framework

     • Managers should prepare the feedback before the meeting. Be empathetic, seek to understand and approach with an open-mind.

     • “I’ve noticed x has been happening, which has led to y result. An example of this behavior is when [provide specific details]. I would love to hear your perspective. My goal is to work together to figure out the best way to improve, and understand how I can best support you.”

2. Formal (Structured PIP with scheduled check-ins and process for employees to submit appeals)

   • Compliance Flag: You must set realistic goals and provide appropriate resources/support to make it clear that the company is acting in good faith vs. using a PIP as a tool to manage the employee out

   • Process:

     1. Step 1: Communicate the concerns around the persisting performance issues verbally in a 1:1 meeting, and follow-up the meeting with an email that clearly outlines the concern, a list of concise areas needing improvements and a clear description of outcomes for each that defines what “good” looks like, the exact timeline for assessing progress, and any required trainings or resources to provide support.

     2. Step 2: Give the employee a deadline to either accept or reject the option to start the PIP process. Be sure to clearly state that declining will result in immediate termination of employment.

     3. Step 3: If accepted, ensure all meetings are scheduled, documentation is created and shared, and the employee has a clear understanding of what is expected of them, and what they must do to improve, track, and measure progress.

     4. Step 4: After each check-in meeting, reiterate that the employee can submit an appeal if not in alignment with managerial assessment and document meeting outcomes.

3. Assess and Act (Final stages where progress is evaluated and decision will be made regarding employment status)

   • Compliance Flag: Terminations are extremely important to handle in accordance with federal/state/international employment laws. Legal review is extremely beneficial before executing a termination conversation.

     
     

Building Effective Performance Management Systems

Building a performance management system that is compliant, effective, efficient, and supportive of employees can appear to be a very complex, time consuming, and difficult task. It definitely is.

It also is a process that, when built properly, will have an incredible ROI for both your business and your team’s productivity and workplace culture. If you are tasked with building this process and have little knowledge of employment law, this exercise will be the best way to learn the basics and nuances to employment law and compliance and building these requirements into your business operations.

As someone whose background is heavy on startup biz ops, I can confidently say that “learning by doing” is the best way to really understand complex topics like compliance.

Strive for excellence - not perfection. (perfection isn’t real)

Expect to iterate on this process over time and ensure flexibility is built into your framework. Most importantly, mentally frame this process as a system to encourage employee growth and development, with the goal of increasing retention, workforce well-being, and overall team morale.

Do all of the above, and you’ll find your organization in a much happier state.

For access to our management frameworks package (feedback, 1:1 meeting agendas, onboarding and performance management) email hello@useframeworks.io or submit a request here.