No manager enjoys facing team members to discuss why they’re underperforming. But when you lead a team, awkward performance review conversations are sometimes inevitable. 

As the saying goes, “you win some; you lose some”. 

You may have some employees that have positive attitudes, work hard, and enjoy helping you grow the company. But you might also have some team members who aren’t performing the way your company had hoped.  

Whether they’re struggling to show up on time, complete tasks in line with your operational standards, or collaborate well with team members, conducting a performance review and setting a plan in motion is essential to supporting them to get back on track.

That’s why creating a performance improvement plan is so important.

By setting expectations and key action steps with a performance improvement plan, you can give your team members the best chance at raising their performance level. 

Ready to discover how to create a performance improvement plan for underperforming team members and build a flourishing team?

Let’s begin!

1. Start with a one-on-one meeting 

The first step to creating a performance improvement plan is meeting with the underperforming team member and getting on the same page.

Whether you’re meeting in person, on the phone, or via video conferencing software, be sure to choose a meeting space that’s private, quiet, and comfortable. As with any conversation, promoting a safe and comfortable environment can help lessen the tension, so you can both focus on what’s important. 

Before scheduling, ask for their availability to ensure you find a time when you’re both free to focus on the conversation without interruptions. Then, prepare a few questions and notes — and gather any related performance data. Encouraging the team member to do the same, send them a positive email, like:

“Hey Shana,

Thanks so much for agreeing to meet with me on Thursday. 

I wanted to pop in your inbox real quick to let you know I’m preparing some notes and questions for our meeting. 

I want to make sure we have a fruitful meeting, so please know that your feedback and input are also welcomed and encouraged! Feel free to show up with questions, comments, and anything else you’d like to share. 🙂

Looking forward to seeing you soon.

Best,
Rachel”

2. Review all of the facts and data

Giving underperforming employees the chance to be honest with you about what’s getting in the way of them performing their best is vital to creating a successful performance improvement plan.

(Image Source: Typeform)

Simple questions like wondering if they have the right training or necessary tools at their disposal can help you determine if there’s something you missed on your part in teeing them up for success. 

If the answer is no, you need to act quickly — but that doesn’t necessarily mean investing a ton of money. For instance, there are plenty of Google tools that can allow team members to work and train at no cost. 

Whatever the case may be, be sure to:

• Review the data you currently have on their performance
• Brainstorm why you think they’re underperforming 
• Ask them why they think they’re underperforming and how you can support them
• Support them with any necessary tools and training they need to succeed

3. Practice active listening skills

When handing the floor over to the team member, use active listening skills to stay focused on what they’re saying and affirm your attention. 

Be sure to give visual cues that you’re paying attention, such as eye contact, nodding your head, and smiling (when it feels natural to do so)

It’s also important to ask for clarity if something doesn’t make sense, so you can both avoid unnecessary misunderstandings.

To get on the same page, try asking questions like:

• “When you say _____, do you mean _____?” 
• “Can you clarify what you mean by _____?”
• “I want to make sure I understand. I heard you say _____, but did you mean _____?
• “I understand you’re struggling with _____, is that right?” 
• “My understanding is you’re currently _____, would you say that’s true?”

4. Review your company’s and employee’s goals 

Getting on the same page also means having a full understanding of each other’s goals. 

The company should understand what stage the employee is currently in and what specific career advancement goals they have. The company should also learn how to aid the employee in meeting their goals — as long as they align with the organization’s overall vision. 

On the flip side, team members must also understand company goals if they have a chance at raising their performance levels. 

By sharing your company’s short term goals, mission, and long-term vision, you can help underperforming employees understand why their improvement is essential to the betterment of the organization at large. 

Take the brand Atlassian Jira, for example. 

The tech giant has effectively aligned its staff with its vision and values, with 100% of its employees reporting feeling motivated by the company’s mission. 

(Image Source: Comparably)

It’s also important to break down the company vision granularly, so employees understand what meeting organizational goals looks like on a practical level. 

5. Document everything 

Avoid an HR nightmare by using an employee monitoring program to evaluate your underperforming employee’s progress and documenting every meeting, pertinent performance data, goals, changed behavior, and (of course) your performance improvement plan. You can add visual elements or use free templates to create guides with your notes. 

Be transparent and let your team member know that everything related to their performance will be documented to ensure you’re giving them the support they need to improve.

6. Discuss a plan of action 

While you can’t control how your team member shows up, you can do your best to support them in their individual growth. 

That’s why it’s essential to create an action plan that sets your underperforming employee up for success. 

When creating an action plan, consider co-creating it directly with the employee.

Start by brainstorming ideas together and then piece together a step-by-step plan. 

The plan you co-create should:

• Address both your concerns and the employee’s
• Highlight key employee and company goals
• Highlight top areas of growth and how the employee can level up in each area
• List important growth milestones 
• Include scheduled follow-up meetings   

For instance, if you run a project management team and your project assistant is underperforming, your plan summary might look something like this:

Performance Improvement Plan Summary: Katie Banks, Project Assistant

• Top employee concerns: Overworked, not enough time in the day.
• Top company concerns: Employees continue to miss task deadlines. 
• Employee goals: Establish a work-life balance.
• Company goals: Receive completed tasks early or on time.
• How the employee can level up: Delegate tasks to project team members, get proactive about task scheduling, reassess task capacity levels, and adjust as needed (with proper notice).
• Important growth milestones: Create a habit of submitting tasks on time over the next 30 days.  
• Scheduled follow-up meetings: Will meet via 30-minute scheduled Zoom calls every Thursday at 10am. 

Here’s a copy of the improvement plan summary template in case you’d like to use it for your next performance improvement plan meeting:

Performance Improvement Plan Summary: (employee name), (employee title)

• Top employee concerns: 
• Top company concerns: 
• Employee goals: 
• Company goals:
• How the employee can level up: 
• Important growth milestones: 
• Scheduled follow-up meetings:

7. Schedule follow-up meetings 

And finally, don’t forget to schedule recurring follow-up meetings so you can continue to measure your team member’s improvement, gather feedback, and reassess the plan when necessary. 

Remember to come to each follow-up meeting with an agenda, a positive attitude, and a genuine willingness to help. 

When asking for employee feedback, listen closely. When possible, try to integrate the solutions they propose and work with them to create a new vision with mutually beneficial goals. 

Kick this tip up a notch by curating and hosting a career development planning meeting. 

While the employee may still have a way to go before they can advance with your company, knowing they have a chance at a bright future with your organization may inspire engagement and motivate them to improve their performance. 

Wrap up 

A performance improvement plan is not about punishing employees for their mistakes, but about helping them become more productive and successful.

By getting everyone on the same page, practicing active listening, and brainstorming solutions, you can co-create a performance improvement plan that helps both your company and your team members succeed.  

These plans are important because it will help everyone feel like they are a part of a team that is working towards a common goal, and it will also help ensure that everyone is pulling their weight to make the team as successful as possible.

To your (and your employee’s) success!