One-Stop HR Information Centre

Most employers do not know the proper ways of handling unconfirmed employees who performed below expectation. The under-performed unconfirmed employees will most probably be terminated at the end of their probation period, without going through the proper Performance Improvement Plan (PIP). This might put the company at risk in Industrial Relations (IR) proceeding.

It is therefore important to have a PIP, in order to assist an identified under-performed employee in improving his / her job performance or poor work habits in order to achieve the standards set for the position. The employers or managers must be made aware of their obligation to address poor performance by: 

• Identify and act on sub-standard performance as early as possible
• Provide a reasonable opportunity for the employee to improve
• Emphasize must be on helping the person to improve
• Provide on-going one-to-one performance counseling
• Focus on observed performance issues, not hearsay
• Focus on action plan for improvement with clear measurements

Meanwhile, the implications of continuing poor performance should be made clear to the employees, for example, downgrading, termination, etc.

Review meeting is a "must" process for PIP. There shall be at least three review meetings (hereinafter referred as "PIP meeting") to assist the under-performed employees to improve their performance.

Prior to the first PIP meeting, once the manager found his / her staff does not meet the job performance requirements, he / she shall have a review with the staff and subsequently require the staff to attend a meeting to discuss on PIP. A copy of the outcomes of the review process (pre-prepared by the manager) will be given to the employee for him / her to plan for the PIP meeting. Sufficient notice of at least 2 working days shall be given to the staff.

In the first PIP meeting, the following items must be fully discussed / clarified:

• PIP form
• Corrective action plan with due dates, measures and management support
• Additional on-the-job training, courses, reading, counseling, etc.

Once the above are discussed, a date for a follow-up meeting (second PIP meeting) shall be set to review the employee’s performance. The period between the meetings depends on the nature of the work performed, the period over which performance can be measured and the seriousness of the poor performance. It is recommended that the meetings shall be scheduled periodically within the probation period. The PIP form must be completed which a copy shall be given to the employee and the Human Resource Department respectively.

Regardless of whether the performance has improved, remained, or deteriorated, the follow-up meeting shall take place on the scheduled date. A form of Review of Progress against POP shall be completed a the outcome of this meeting. If performance has improved to an acceptable level, the review could be end there. If performance has not improved, the manager may indicate the possible outcome, including terminating the employment contract if the performance still does not improve by the next meeting. A letter to this effect shall be given to the staff, and all local regulations should be taken into consideration before issuing such letters. Thereafter, the next PIP meeting date shall be set. Again, the employee and the Human Resource Department shall be given a copy of the completed Review of Progress form.

The third PIP meeting, usually is the final PIP meeting. if the manager believes that the employee’s performance has not improved, a senior manager must chair the meeting. A member of the Human Resource Department may also be invited to attend. If the Chairperson finds that performance has improved to an acceptable level, this would mark an end to the review. Otherwise, a separate decision could be made.