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 non-performer have resulted in costly financial
consequences to employers.