In order to effectively address poor or
underperforming employees, a
company must have a comprehensive
Performance Improvement Plan (PIP) in
place. Without a PIP in place, any
purported action taken on the
employees would simply be a sham
and, naturally, will not be effective. PIP
involves documenting problems and
communicating those problems to
employees. The effectiveness of a PIP
relies heavily on documentation, which
could deter frivolous lawsuits and
complaints by employees against the
company. Recent Court decisions show
that non-compliance to the right
approach of dealing with nonperformer have resulted in costly
financial consequences to employers.