Webinar Notes: Developing a Performance Improvement Plan (PIP)

Introduction

• Presenter: Ray McCall
• Webinar aligns with HR programs: Certificate IV, Diploma, Advanced Diploma of Human Resources Management.
• Focus: Performance Improvement Plan (PIP) within performance development and management.
• Goal: Provide insights for professional toolkit, HR business partnership perspective.

Overview of Performance Improvement Plans

• Definition: Document/tool identifying performance issues; sets clear expectations for improvement and consequences for unmet expectations.
• Purpose: Help employees understand skill gaps, provide clear expectations, and strategies for skill development.
• Nature: Not one-size-fits-all; unique to each employee’s needs and collaboratively developed.

Legal Context

• Examine recent legal decisions related to PIPs.
• Reasonable Management Action: Fair, transparent, just actions as per the Fair Work Act.
• Key Legal Cases:
  • Blagojevich v. AGL Macquarie: PIP deemed reasonable despite resulting employee depression; employer actions judged as reasonable management action.
  • Pessamenti v. Rotary International: Adverse action claim succeeded due to PIP's artificiality and changing goalposts.

Characteristics of Effective PIPs

• Document Performance Concerns: Clearly identify and address performance issues.
• Encourage Constructive Dialogue: Collaborative development with employee input.
• Solutions-Oriented: Detail agreed interventions and solutions for performance gaps.
• Support Tool: Provide clear, actionable steps with ongoing monitoring and review.
• Overall Goal: Retain employees, foster positive work culture, and minimize turnover.

What PIPs Should Not Be

• Not for Serious Misconduct: Not applicable in cases of serious misconduct.
• Not a Tick-Box Exercise: Should not be used as a step towards termination.
• Not for Personal Issues: Not designed to resolve personality conflicts.

PIP Process

1. Identify Performance Issues: Assess and analyze the problem's nature, seriousness, and duration.
2. Meet with Employee: Discuss issues and collaboratively draft PIP.
3. Monitoring and Review: Schedule regular check-ins and reviews.
4. Final Review: Evaluate if objectives have been met and determine next steps.

Fair Work Ombudsman Best Practice

• Template Use: Utilizes Fair Work Ombudsman’s recommended format.
• Elements of Template:
  • Details: Employee, manager, dates, review periods.
  • Performance Objectives: Specific, measurable, realistic.
  • Required Outcomes: Quantitative and qualitative expectations.
  • Strategies and Support: Define interventions and support mechanisms.
  • Responsibilities and Consequences: Roles and potential outcomes for unmet expectations.

Additional Resources

• Existing webinar recordings on performance management and development.
• Further reading and templates for deeper understanding.

Conclusion

• Summary of PIPs and their relevance in HR.
• Available resources for further development.
• Contact Information: Reach out via email or phone for further assistance.