The HR Dictionary

Performance Improvement

The process of developing, evaluating, and putting into practice strategies to enhance an individual's or organization's performance is known as performance improvement. Performance can be improved in a variety of contexts, including worker performance, organizational processes, goods, and services.

Performance improvement in the context of employee performance is locating performance gaps, establishing performance objectives, and creating plans to fix the gaps and achieve the desired results. This procedure could entail offering more training and resources, establishing a coaching or mentoring program, or offering feedback and rewards to motivate improved performance.

What are PIPs (Performance Improvement Plans)?

Employers formally construct Performance Improvement Plans (PIPs) to assist employees in enhancing their job performance. When an employee's performance is judged to be substandard or when they have faced disciplinary action because of performance-related issues, PIPs are often generated. 

A PIP's goal is to give the employee specific instructions on what they must do to enhance their performance and live up to the employer's expectations. The plan often outlines the employee's deadlines, performance targets, and objectives in detail. It may additionally outline certain steps the worker has to take, such as attending training or speaking with a mentor or coach.

Why is Performance Improvement Important?

To improve employee and manager performance, it is essential to first identify areas that need improvement. Performance improvement plans can assist teams in determining what is working well and what needs improvement. By pinpointing specific challenges, companies can develop targeted solutions rather than relying on unfocused efforts to improve overall performance.

Performance improvement initiatives can provide significant benefits such as enhanced productivity, decreased work errors, better quality work, increased employee satisfaction, and reduced time spent redoing tasks.