8.12 Investigation of Performance Issues
When an employee is having a performance issue, it is often the responsibility of the HR professional to investigate the situation. Training managers on how to document performance issues is the first step in this process. Proper documentation is necessary should the employee need to be terminated later for that performance issue. The documentation should include the following information:
- Date of incident
- Time of incident
- Location (if applicable) of incident
- A description of the performance issue
- Notes on the discussion with the employee on the performance issue
- An improvement plan, if necessary (discussed below)
- Next steps, should the employee commit the same infraction
- Signatures from both the manager and employee
With this proper documentation, the employee and the manager will clearly know the next steps that will be taken should the employee commit the same infraction in the future. Once the issue has been documented, the manager and employee should meet about the infraction. This type of meeting is called an investigative interview and is used to make sure the employee is fully aware of the discipline issue. This also allows the employee the opportunity to explain his or her side of the story. These types of meetings should always be conducted in private, never in the presence of other employees.
However, in unionized organizations, the employee is entitled to union representation at the investigative interview. This union representation is normally called interest based bargaining, referring to a National Labor Relations Board case that went to the United States Supreme Court in 1975. Recently, Weingarten rights continued to be protected when Alonso and Carus Ironworks were ordered to cease and desist from threatening union representatives who attempted to represent an employee during an investigative interview (National Labor Relations Board, 2011).
Options for Handling Performance Issues
Our last phase of dealing with employee problems would be a disciplinary intervention. Often this is called the progressive discipline process. It refers to a series of steps that take corrective action on non-performance issues. The progressive discipline process is useful if the offence is not serious and does not demand immediate dismissal, such as employee theft. The progressive discipline process should be documented and applied to all employees committing the same offence. The steps in progressive discipline are normally the following:
- First offence: Unofficial verbal warning. Counselling and restatement of expectations.
- Second offence: Official written warning, documented in employee file.
- Third offence: Second official warning. Improvement plan (discussed below) may be developed. Documented in employee file.
- Fourth offence: Possible suspension or other punishment, documented in employee file.
- Fifth offence: Termination and/or alternative dispute resolution.
Performance Improvement Plan
A Performance Improvement Plan (PIP) is a written document identifying how an employee is falling short of expectations in the job and identifies what needs to be done to improve and succeed (Organ & Main, 2022).
Following the first and second offence, along with a second official warning, an employee is required to participate in a Performance Improvement Plan. This is generally handled through Human Resources, and may involve a Supervisor. At this stage the employee’s performance is not up to standards which needs to be identified. There are often three causes that affect an employee’s performance: ability, motivation and environment.
- Ability: can include physical or psychological limitations, communication skills, problem solving skills, technical skills, interpersonal skills, analytical skills.
- Motivation: can include lack of ambition, relationships with co-workers, job dissatisfaction, lack of goals, feeling treated unfairly
- Environment: can include (external) issues in the family, community, or personal; (internal) poor job design, economic conditions, rules, unions, lack of management support
Once a discussion has been completed, and the source of the problem has been assessed, action can be taken. Some options might be training, a change in job or department, help in defining goals and expectations of the job, or other supports through Employment Assistance Plans the company may offer.
A Performance Improvement is not punitive. Rather is a step in a progressive discipline policy. According to Timothy Ford, an attorney suggests a PIP is used primarily to facilitate improved performance by identifying deficiencies and providing opportunities for improvement and success. The goal is to help the employee succeed. The employee should be made aware, ahead of time, the expectations of performance are not being met. This way there is no surprise. There are six main components to a Performance Improvement Plan:
- Define the problem
- Discuss the behaviours that should be modified, based on the problem.
- List specific strategies to modify the behaviour
- Develop long and short-term goals
- Define a reasonable time line for improvements.
- Schedule “check in” dates to discuss the improvement plan.
This plan is developed with the employee, the Human Resources Specialist, and perhaps a Supervisor. Once everyone is comfortable with the plan, it is agreed to and signed by everyone. Ongoing feedback, and “check in” dates will be honoured to ensure the employee is following the PIP. Corrective action is taken as necessary. As well, praise for improvement is offered. At the end of the PIP, the employee, Human Resources Specialist, and Supervisor review the PIP and decide of the goals were met. If they were met, the PIP is complete. If the goals were not met, other action may need to be taken.
Example: Employee Performance Improvement Plan (PIP)
The following is an example of a typical PIP:
Employee Performance Improvement Plan (PIP)
Employee Information
- Name: [Employee Name]
- Position: [Employee Position]
- Department: [Employee Department]
- Supervisor: [Supervisor Name]
- PIP Start Date: [Start Date]
- PIP End Date: [End Date, typically 30, 60, or 90 days after the start date]
Performance Issues
The following performance issues have been identified:
- Sales Performance: The employee has not met the monthly sales target for the last three months.
- Client Feedback: There have been repeated instances of negative client feedback regarding follow-up and communication.
- Report Accuracy: Sales reports submitted have contained errors, leading to discrepancies in sales data.
Performance Objectives
To address the issues listed above, the employee is expected to achieve the following objectives:
- Achieve monthly sales targets as outlined by the department’s objectives.
- Receive consistently positive feedback from clients, with no more than one negative report per month.
- Submit accurate sales reports with no errors, requiring no further corrections.
Action Plan
To meet these objectives, the employee should take the following actions:
- Attend weekly sales strategy meetings with the supervisor to align on goals and tactics.
- Complete a customer service training program by [insert date] to improve client communication and satisfaction.
- Review all sales reports with a colleague prior to submission to ensure accuracy.
Support Provided
The employer will provide the following support to assist the employee in meeting the PIP objectives:
- Weekly one-on-one coaching sessions with the supervisor.
- Access to an online course for improving customer service skills.
- Pairing with a peer mentor for report preparation and review.
Monitoring Performance
Progress will be evaluated on a weekly basis through:
- Review of sales figures against monthly targets.
- Feedback solicited from clients after interactions.
- Accuracy checks of submitted reports by the supervisor.
Consequences of Not Meeting PIP Objectives
Failure to meet the objectives outlined in this PIP may result in further disciplinary action up to and including termination of employment.
Employee Acknowledgement
I, [Employee Name], acknowledge that I have read and understand the contents of this Performance Improvement Plan. I agree to work towards the improvement goals set and understand the consequences if I do not meet the objectives.
Employee Signature: ______________________ Date: __________
Supervisor Signature: ______________________ Date: __________
The employee Performance Plan example was created using generative AI. OpenAI. (2023). ChatGPT [Large language model]. https://chat.openai.com
Benefits of Performance Improvement Plans (PIP)
The benefits of a Performance Improvement Plan not only benefit the employee, but the organization too. They include:
- Promotion of a Positive Company Culture: Reinforces a positive company culture because employees feel supported when they need guidance and help with job expectations
- Feeling Cared For: Employees feel supported, and appreciate that the company, their Supervisor and Human Resources take the time to offer feedback and help them improve.
- Saving Time and Resources: Hiring and onboarding costs time and money. When employees are offered opportunities to improve performance rather than being terminated, it is a win-win for the employee and the company (Organ & Main, 2022).
Alternative Dispute Resolution (ADR)
Another option in handling disputes, performance issues, and terminations is alternative dispute resolution (ADR). This method can be effective in getting two parties to come to a resolution. In ADR, an unbiased third party looks at the facts in the case and tries to help the parties come to an agreement. In mediation, the third party facilitates the resolution process, but the results of the process are not binding for either party. This is different from arbitration, in which a person reviews the case and makes a resolution or a decision on the situation. The benefits of ADR are lower cost and flexibility, as opposed to taking the issue to court.
Some organizations use a step-review system. In this type of system, the performance issue is reviewed by consecutively higher levels of management, should there be disagreement by the employee in a disciplinary procedure. Some organizations also implement a peer resolution system. In this type of system, a committee of management and employees is formed to review employee complaints or discipline issues. In this situation, the peer review system normally involves the peer group reviewing the documentation and rendering a decision. Another type of ADR is called the ombudsman system. In this system, a person is selected (or elected) to be the designated individual for employees to go to should they have a complaint or an issue with a discipline procedure. In this situation, the ombudsman utilizes problem-solving approaches to resolve the issue. For example, at National Geographic Traveler Magazine an ombudsman handles employee complaints and issues and also customer complaints about travel companies.
“8.12 Investigation of Performance Issues” from Human Resources Management – 3rd Edition by Debra Patterson is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.
