Corrective action is a process of communicating with the employee to improve unacceptable behavior or performance after other methods such as coaching and performance appraisal have not been successful.
When managing job performance and/or disciplinary issues there are two fundamental principles to keep in mind:
- Employees deserve to know and understand what is expected of them in terms of job performance and behavior; and
- In most situations, offending employees are entitled to a warning about unacceptable job performance and/or behavior and the opportunity to improve.
It is important to note that there may be exceptions to the use of all or a portion of a corrective action process. Generally, these exceptions are outlined in the company’s policy manual.
When employee behavior violates stated workplace rules of conduct or otherwise does not meet minimum job performance expectations, the resulting corrective action process should entail:
- A clear statement describing the employee’s behavior deficiency, citing specific instances wherever possible and referencing prior related communications.
- A restatement of the minimum expectations or requirements about the area of deficiency.
- The consequences of failing to meet these requirements or future related behavioral deficiencies, including further disciplinary action up to and including termination. (Avoid attaching time frames for improvement. The message should be that failure to demonstrate immediate and sustained improvement will result in further disciplinary action, up to and including termination of employment.)
Corrective action, whether informal or formal, must be well documented, and the documentation retained as part of the employee’s personnel records. In the event the steps include a written warning or final written warning, management should prepare a standardized notice that the employee signs, acknowledging that she or he understands. If the employee refuses to sign, that should be noted on the document.
Performance Improvement Plan
A performance improvement plan (PIP), also known as a performance action plan, is a great way to allow struggling employees to succeed while still holding them accountable for past performance. It is not always clear why an employee has poor performance. Did he or she not receive appropriate training? Does the employee not understand the expectations of the job? Are there unforeseen roadblocks in the way? Until you allow for open dialogue and feedback, you may not know whether you provided an employee the opportunity to be successful.
Step 1: Document performance issues
The first step in the PIP process is for the supervisor to document the areas of employee performance that need improvement. In documenting the main performance issues, be objective and specific. Provide facts and examples to further clarify the severity or pattern of performance concerns. (Examples of detailed documentation are included in the two scenarios at the end of this guide.)
Step 2: Develop an action plan
It is important to determine what is driving the unacceptable job performance and/or behavior. For example, does the employee need any additional resources, time, training, or coaching to improve? Or is there a discipline issue? Once the supervisor is clear about what is driving the unacceptable job performance and/or behavior, then an action plan can be established.
This action plan should help set performance expectations and should include a statement about the consequences of not meeting these objectives. If termination is a possibility, it should be communicated in the plan document. The supervisor needs to manage this situation regularly, providing ongoing feedback. If the employee is not meeting the minimum expectations, consequences will need to be implemented.
Step 3: Review the plan
Before meeting with the employee, the supervisor should seek assistance from his or her manager or an HR professional to review the PIP. This third party should ensure the documentation is stated clearly and without emotion. The third party can also review the suggested action plan to ensure it is specific, measurable, relevant, and attainable.
Step 4: Meet with the employee
During this meeting, the supervisor must lay out the areas for improvement and plan of action. It may be necessary to modify the action plan slightly after receiving the employee’s input and feedback. Changes should be made to the plan before the supervisor and the employee sign the PIP form.
Step 5: Follow up
The employee and supervisor should establish regular follow-up meetings (weekly, bi-weekly, or monthly). The purpose of these meetings is to discuss and document progress toward objectives. But ultimately, it is best when an employee is provided the opportunity in follow-up meetings to ask questions and seek guidance or clarification on performance expectations. The supervisor should ensure any potential roadblocks are discussed and that the employee has been provided with the necessary tools and training.
Step 6: PIP conclusion
If an employee is unable to improve, refuses to commit to the PIP, or his or her performance worsens, then the employer should close the PIP, document what took place and terminate employment.
When the employee does show some improvement but is unable to achieve some or all of the established action plan objectives, there are a few options.
- If the employee is trying his or her hardest but just can’t meet one or more objectives, the employer may agree to extend a PIP for a few more weeks or months. It may also be worth determining if another position is a better fit.
- If the employer determines in retrospect that the objectives were too hard or not completely within the employee’s control, the employer may decide to either extend and modify the PIP or end the PIP due to the progress that was observed.
- If the employer determines that the employee does not have the skills and/or interest in really trying to improve, even after all of this effort, then the employer should consider termination of employment.
When the employee has responded positively by meeting the objectives, the employer should formally close the PIP and allow the employee to continue employment. This should be a positive occasion for the employee, but be sure the employee understands that continued good performance is expected.
