Performance Improvement Plan is applicable to only confirmed employees and not those who are still  under the probation period.


a) First Stage: Development of PIP

Use this stage when performance levels have not improved following counseling, when the employee’s annual/KPI performance is not satisfactory, or when a performance objective is unsatisfactory during the period of assessment.


It is important that Supervisor/Manager should have counseled the employee and make him fully aware that this stage may place his employment in jeopardy if the performance is not corrected during the performance improvement process.


Step 1

Discuss and obtain approvals from the PM/VH and involve HR Business Partner.

Step 2

Prepare a PIP Template as per Annexure 1 to this policy that:

· Summarizes the unsatisfactory performance and why it is unsatisfactory (for example, measured against the standard). (Annexure 1, Para 1)

· Summarizes prior discussions with the employee (for example, counseling sessions, annual/KPI rating, and performance objective rating). (Annexure 1, Para 2 )

· Describes the placement of the employee on a Performance Improvement Plan, the plan’s process (for example, monitoring and regular meetings), and the plan’s timeframe not less than 30 days. (Annexure 1, Para 4 & 5)

· Describes specific examples of the support the employee will receive (for example, training, coaching, or counseling). (Annexure 1, Para 6 & 7)

· Describes the time in which feedback will be provided. (Annexure 1, Para 10)

· Description of how the outcome will be measured. (Annexure 1, Para 5)

· Timeline for measuring the outcome. (Annexure 1, Para 11)

· Describes the action that may be taken if the employee does not successfully improve performance. (Annexure 1, Para 11)

· Closes with a statement of support and signatures. (Annexure 1, Para 12)

Step 3

Give the employee a copy of the performance improvement plan. Place a copy of the signed document in the Company’s PIP file.



b) Second Stage: Feedback


Provide feedback to the employee throughout the performance improvement process so that the employee is aware of his/her progress through the various phases of the Performance Improvement Plan.



Step 1

Provide consistent, timely, and ongoing feedback to the employee as outlined in the PIP. Failure to provide regular feedback will result in an ineffective performance improvement process and may extend the process.  

Step 2

Provide the employee with a signed copy of the formal review. The employee should sign the document to acknowledge receipt. Place a copy of the signed document in the Company’s PIP file.

c) Third Stage: Achieved Performance Improvement


Use this process when the employee’s performance improves to the expected level.


Step 1

Prepare a letter to show the improvement in the employee’s performance and advising the employee that the acceptable level of performance must be sustained.

Step 2

Give the employee a copy of the letter. Place a copy of the signed document in the Company’s PIP file.

d) Fourth Stage: Recurrence of Unsatisfactory Performance


The employee should maintain the expected level of satisfactory performance. If the employee falls below the expected performance level, work with HR BP and PM/VH to determine whether it is appropriate to again place the employee on a Performance Improvement Plan.

e) Fifth Stage: Employee Fails the Performance Improvement Plan


It is expected that the employee will achieve the desired level of satisfactory performance as outlined in the Performance Improvement Plan. If the employee fails to meet the performance objectives outlined in the plan or fails to maintain the expected level of satisfactory performance then:


· A written extension of the current Performance Improvement Plan could be provided.

· He shall be terminated on the basis of continued poor performance. This step must be discussed in advance with the PM/VH and HR BP.

· The termination shall be with immediate effect without any notice period or compensation in lieu of notice period.

· The PIP period in such cases shall serve as the Notice Period