Benefits of Performance Improvement Plan (PIP)
The benefits of Performance Improvement Plan (PIP) are:
- Helps in company’s growth: Making PIP helps in the company’s growth because if there is a PIP policy in the company, the employees work more seriously to meet their targets as they know that if they do not meet their targets, they might have to face disciplinary actions from the management.
- Motivates staff to perform better: PIP’s main focus is to help the staff perform better rather than penalize them for their underperformance.
- Saves a lot of time and money: Improving current employee performance saves companies a lot of time and money, because if the employer fires the non-performing employees, the company may have to face the expenses that come with recruiting a new candidate for that role. Instead, the employer can use the PIP policy and help the employees by arranging some training sessions for them to improve their performance.
- Better understanding of organization: Employees put in more effort when they understand what the organization expects of them, and employers also do not have to be ruder towards their employees if they have a PIP policy.
- Helps to understand weak points: PIPs assist employees in charting a clear path to success by identifying their weak points.
- Helps companies in terminating underperforming candidates: PIP supports employees whose performance has slipped, but it is sometimes beneficial for the employers as well, as they get an excuse to terminate a continuously underperforming employee.