Episode 67

full
Published on:

16th Aug 2023

Performance Improvement Plans Wreck Your Organizational Culture and Employee Engagement

Summary:

Performance improvement plans (PIPs) are often a waste of time and can create a toxic environment within organizations. Instead of relying on PIPs to address performance issues, organizations should focus on building a culture of communication and feedback. Regular check-ins and consistent feedback help set clear expectations and address challenges collaboratively. PIPs are often seen as a sign that an employee's days are numbered, leading to fear and disengagement. Additionally, the goals set in PIPs are often unachievable and not aligned with the employee's capabilities. Instead of using PIPs as a performance management tool, organizations should focus on eliminating the need for them by creating a communication culture and addressing organizational gaps.

Key Takeaways:

  1. Performance improvement plans (PIPs) are a waste of time and can create a toxic environment.
  2. Regular check-ins and consistent feedback help set clear expectations and address challenges.
  3. PIPs are seen as a sign that an employee's days are numbered, leading to fear and disengagement.
  4. The goals set in PIPs are often unachievable and not aligned with the employee's capabilities.
  5. Organizations should focus on building a communication culture and addressing organizational gaps.

Timestamp

[0:00:00] Performance improvement plans are generally a waste of time.

[0:01:00] Communication and regular feedback can minimize the need for improvement plans.

[0:02:37] Goals in improvement plans are often unachievable and not aligned.

[0:03:57] Improvement plans focus on the employee instead of organizational gaps.

[0:04:42] Improvement plans should be avoided in mission-driven organizations.

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Transcript

Why are PIPS an engagement killer_-_1

[:

Because that is the feeling that everyone has when they go in that room. So why do I say that? Because performance improvement plans are generally a waste of time. If you're looking at building a high performance culture and you're waiting until a performance improvement plan discussion to address performance issues, you're already losing the battle.

red within the organization. [:

So let's walk through how you actually change a culture and make performance improvement plans. I think of the past. One of the big things that you need to focus on is making sure that communication in general is embedded in your organization. As part of your culture, every employee should have regular check ins and consistent feedback.

And that way they're not caught off guard when there's a performance related conversation that you're having. This is how you keep your teams and everybody on your team operating effectively because you've set clear expectations. You've talked through current issues or challenges and you're working together to solve those challenges.

t waste of time is that it's [:

You should be activating your network and you should be looking for that next job. Because even if you survive it, that's still part of your employee file. And it's going to be evaluated the next opportunity that you have for a step up into a different role. Follows you around within the organization.

So this is not something that motivates anybody. In fact, it's big fear tactic, and leveraging fear does not lead to peak performance and engagement. Now, another reason why the performance improvement plans typically are a waste of time. Let's think about how often, how goals are established in these.

t it's extremely common that [:

The parallel that I'll draw is if you've spent six months sitting on your couch and your boss comes in and says. Okay. Tomorrow you're running a marathon. You're not going to do too well. You're not going to get very far. And that's very similar to how typical performance improvement plans are structured.

So a lot of organizations have significant gaps and even structuring these things the right way to give people a chance. So all of that is going to have an impact across your organization because people talk, that's another factor to think about is that when you're deploying these things. And we're talking about building a communication culture, building your emotional intelligence, building your empathy that goes out the window.

nd if you have gaps in other [:

That put us in a position where we have to regularly use these to get our employees on track. So rather than using these as a, performance management tool, the focus should be how can we eliminate them and how can we actually have more regular conversation that is more realistic and we're breaking down the work.

Streams to put our people in positions to be successful. There can be an argument made that performance improvement plans are necessary. And I'm happy to listen to those sorts of conversations. The reality of it is that I think they're a giant waste of time. They're embedded with fear tactics instead of a growth mindset.

're a manager of a team that [:

Constantly putting us in a position where we have to have these conversations. So if you want to be in a lead organization, use performance improvement plans, if you have to realistically, the better solve is building a communication culture so that you don't need to have those conversations.

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Engaging Leadership
Building High-Performance K-12 Districts
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About your hosts

CheeTung Leong

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I'm committed to helping people live their best lives through work.

I'm one of the co-founders of EngageRocket, an HRTech SaaS startup and we are focused on helping organizations build empowered managers, engaged employees, and elite teams.

I'm a big nerd when it comes to economics and psychology and regularly use data and tech to help folks live their best lives.

I've been recognized by Prestige Magazine as one of the top 40 under 40 business leaders and have been featured in Forbes, Bloomberg, Business Insider, and Tech in Asia.

Jim Kanichirayil

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Your friendly neighborhood talent strategy nerd is the producer and co-host for The HR Impact Show. He's spent his career in sales and has been typically in startup b2b HRTech and TA-Tech organizations.

He's built high-performance sales teams throughout his career and is passionate about all things employee life cycle and especially employee retention and turnover.