Poor employee performance may cause the end of business prosperity. On the one side, you can’t retain unproductive workers as it hinders business efficiency. On the other hand, it equals 33% of an employee’s annual salary to replace them, according to EBN. Thus, in any case, the budget is going to suffer.
In this article, we will discuss a possible solution that may help you to save your reputation, money, and an employee – a performance plan.
What Is a Performance Plan?
At its core, a performance plan isn’t associated with positive events since it usually follows an array of employee’s failures. Its ultimate purpose is to define the occurred problems or gaps and introduce measures on how to eliminate them.
With this in mind, we can define the performance plan as a document with set performance goals for a particular employee. It’s vital to note that it can be implemented at a department or organizational level.
A successful outcome implies that an employee/department/organization has managed to achieve the goals within a specified timeframe. Otherwise, the penalty measures take place.
Basically, performance plans foster personal and business development. To have a positive perspective, let’s elaborate on the objectives. The plans are implemented for the sake of:
Specifying job responsibilities
Clarifying goals to achieve
Defining the necessary skills and expertise
Setting up a career or performance development plan
How to Write a Performance Plan
Although it may seem rather complicated to make up a performance plan from scratch, in reality, it’s not. There are five steps for you to accomplish, and the job is done. Here they are:
Identifying the Areas for Improvement
First of all, you need to determine weak spots that need to be improved. In terms of an employee, they can be related either to their behavior or to their performance. However, both can take place at the same time.
Setting the Benchmark
Once you have identified the problem, it’s time to define the desired result. It must be clear and precise. For example, instead of stating “increase in sales,” you should write “a 20% increase in sales.” Measurable goals are always easier to qualify and assess.
Don’t let your employees take an ad hoc path. Guide them instead. Together, you can work out a set of suggestions that will result in efficiency and productivity. It’s always a good idea to provide recommendations tested in practice before.
Scheduling the Development
As soon as you define all the major areas for improvement and provide recommendations, you need to create a schedule according to which the results are going to be assessed. It must include the deadline, as well as frequent meetings in order to discuss the process with its struggles and first achievements.
The last step is to specify the consequences in case the employee fails to meet the set requirements. You need to provide their detailed description to ensure transparency and clarity.
Performance Plan Template
Performance plan templates may vary depending on the objectives. Nonetheless, the structure is the same. It can be divided into three parts.
The first one consists of the name of an authoritative person (usually a manager) and an employee with titles, as well as the date. Then, you are to state:
Reasons for making up the performance plan
Consequences in case of failure.
In the end, both parties should sign the document.
Performance Plan Example
As well as templates, there can be a wide variety of performance plan examples. Here, we will provide an example of the document in case of poor sales representative performance. It looks as follows:
Supervisor Name: Veronica Hopewell, Senior Sales Manager
Employee Name: Jeff Smith, Sales Manager (Team 2)
Date: December 7, 2020
Reasons: Due to the consistent failure to meet the sales quota, I am issuing this performance improvement plan. For the past two months, your sales results were 50% below the norm set for the department. In the previous month, you managed to fulfill only 30% of the set standard.
Expectations: You are to enhance your performance by at least 50% compared to the previous month and reach a minimum of 80% of the required goal. The goal is to be achieved within one month, starting from December 8, 2020, and ending on January 9, 2020. Further on, you are to complete 100% of the norm for the sales department.
Suggestions: You are to study a set of effective sales links provided in the document’s attachment. You can contact me within the timeframe to receive consultations and resolve complicated issues.
Schedule: I propose we meet every Friday at 9.00 am in my office, where you are to report on the progress. Our final meeting will take place on January 9, 2020.
Consequences: Failed to meet the set norm, you are to be immediately terminated from the position of a sales manager on January 9, 2020.
Creating Your Performance Plan
Are you ready to create performance plans that help your organization save costs and improve employee productivity? Lanteria’s suite of performance management tools can help you. Reach out to us for a consultation on how Lanteria HR can benefit your business.