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PIP_SOP

This Standard Operating Procedure (SOP) outlines the Performance Improvement Plan (PIP) program designed to assist underperforming employees in meeting job expectations while ensuring compliance with employment laws. It details the roles and responsibilities of involved parties, the PIP process, documentation requirements, and considerations for termination if necessary. The SOP emphasizes a structured and fair approach to performance management, including regular monitoring and support for employees.

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2 views

PIP_SOP

This Standard Operating Procedure (SOP) outlines the Performance Improvement Plan (PIP) program designed to assist underperforming employees in meeting job expectations while ensuring compliance with employment laws. It details the roles and responsibilities of involved parties, the PIP process, documentation requirements, and considerations for termination if necessary. The SOP emphasizes a structured and fair approach to performance management, including regular monitoring and support for employees.

Uploaded by

hanna.ariffin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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STANDARD OPERATING PROCEDURE (SOP)

Performance Improvement Plan (PIP) Program


Prepared by: [Your Company Name]

Effective Date: [Insert Date]

Version: 1.0

1. Purpose
This SOP outlines the procedures for implementing and managing the Performance
Improvement Plan (PIP) in compliance with employment laws and company policies. It
aims to support underperforming employees in meeting job expectations through a
structured, fair, and legally sound process.

2. Scope
This procedure applies to all permanent employees whose performance does not meet
expected standards after regular coaching and feedback.

3. Legal Considerations
- Adhere to the Employment Act 1955 (Malaysia) or relevant local law.
- Maintain non-discrimination, due process, and documentation throughout.
- Provide reasonable opportunity and support for improvement.
- Do not treat PIP as automatic grounds for termination.

4. Roles and Responsibilities


Role Responsibility

Line Manager Initiates PIP, monitors progress, provides


regular feedback.

HR Department Guides on policy, ensures legal compliance,


reviews documentation.

Employee Participates actively in the plan and strives


to meet expectations.

Senior Management Approves final decision on continuation or


termination post-PIP.

5. When to Use a PIP


- Consistent failure to meet performance standards despite feedback.
- After informal coaching or counseling fails.
- Not for misconduct (handled via disciplinary process).
- Objective performance shortfalls (e.g., KPIs not met, poor quality of work, low
productivity).

6. PIP Process Overview


Step 1: Pre-PIP Assessment

- Document prior coaching or warnings.


- Gather performance metrics and feedback.
- HR reviews for legal and procedural fairness.

Step 2: Draft PIP Document

- Specific performance deficiencies.


- Expected performance level (e.g., KPIs, quality targets).
- Timeline (typically 30–90 days).
- Support measures (training, mentoring, tools).
- Check-in schedule (weekly/bi-weekly).
- Consequences of not meeting expectations.

Step 3: PIP Discussion & Agreement

- Meeting with employee and HR.


- Present and explain PIP document.
- Allow response and sign acknowledgment.
- Provide a copy to the employee.

Step 4: Monitoring & Check-Ins

- Manager conducts regular reviews.


- Document progress and challenges.
- Adjust support measures if needed.

Step 5: Final Review

- Assess performance at end of PIP period.


- HR and manager jointly decide:

• Improvement: End PIP, reintegrate employee.


• Partial Improvement: Extend PIP once (max. 30 days).
• No Improvement: Proceed to termination with HR support.

7. Documentation Requirements
- Keep all PIP forms, meeting minutes, and communications.
- Ensure documents are dated, signed, and stored confidentially.
8. Sample PIP Timeline (60 Days)
Week Action

Week 1 Launch PIP, explain expectations

Week 2 1st review meeting

Week 4 Mid-point review

Week 6 Pre-final review

Week 8 Final evaluation and decision

9. Termination Consideration (If Applicable)


- Ensure termination is not a surprise.
- Provide evidence of fair process and support.
- Conduct final HR meeting with termination letter, final pay, and benefits info.

10. Review & Policy Update


This SOP shall be reviewed annually or as required by law or policy changes.

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