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<h2 align="center" style="text-align:center"><b style="mso-bidi-font-weight:
normal"><font face="Verdana, Arial, Helvetica, sans-serif">PERFORMANCE
IMPROVEMENT PROGRAM<br>
A New Name for an Old Practice</font></b></h2>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif">We often
get a question from clients that goes something like this:<span style="mso-spacerun: yes">
</span>I want to terminate one of my employees.<span style="mso-spacerun: yes">
</span>What�s the process to do it legally?<span style="mso-spacerun: yes"> </span>Usually
it�s the wrong question to ask.<span style="mso-spacerun: yes"> </span>The
right question should be, I�m having problems with one of my employees.<span style="mso-spacerun: yes">
</span>How can I resolve that problem?�</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif">Most of
us are aware of the 3-step process known as progressive discipline.<span style="mso-spacerun: yes">
</span>For most supervisors it means laying the groundwork leading to
termination.<span style="mso-spacerun: yes"> </span>It is sometimes
referred to as one verbal, two written and out!<span style="mso-spacerun: yes">
</span>In practice, it starts with 1)<span style="mso-spacerun: yes"> </span>a
verbal warning, followed by 2)<span style="mso-spacerun: yes"> </span>a
written warning, and 3)<span style="mso-spacerun: yes"> </span>a written
probation, followed by termination.</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif">There
are many problems with the attitude or motivation behind that approach.<span style="mso-spacerun: yes">
</span>The main problem is that it starts with the presumption of terminating
the employee.<span style="mso-spacerun: yes"> </span></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif">Today
this process is more generally known as a Performance Improvement Program (PIP).<span style="mso-spacerun: yes">
</span>Although the functions are almost identical, there is a world of
difference.<span style="mso-spacerun: yes"> </span>First, a PIP starts
with recognizing that a specific employee is having difficulty performing their
job.<span style="mso-spacerun: yes"> </span>You, as the supervisor, must
start with the approach that you want to resolve that problem, not terminate the
offender.<span style="mso-spacerun: yes"> </span>You have an investment in
this employee, a real dollar measurable investment.<span style="mso-spacerun: yes">
</span>This is one of the people with whom you have chosen to work.<span style="mso-spacerun: yes">
</span>If you can help him or her make the adjustment, I can guarantee you that
it will be far more economical than recruiting and training all over again
and/or facing the potential lawsuit.<span style="mso-spacerun: yes"> </span>Now,
the 3-step process:</font></p>
<p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in;mso-list:l2 level1 lfo1;
tab-stops:list .25in"><font face="Verdana, Arial, Helvetica, sans-serif">1.<span style="font:7.0pt "Times New Roman"">
</span>Verbal.<span style="mso-spacerun: yes"> </span>Identify clearly in
your mind:<span style="mso-spacerun: yes"> </span>A)<span style="mso-spacerun: yes">
</span>what is he/she not doing that they should be, and/or B)<span style="mso-spacerun: yes">
</span>what is he/she doing that they should not be?, C)<span style="mso-spacerun: yes">
</span>what behavior problems must be addressed?</font></p>
<p class="MsoNormal" style="margin-left:.25in"><font face="Verdana, Arial, Helvetica, sans-serif">Be
very clear in your mind and in your words what the problem is.<span style="mso-spacerun: yes">
</span>It must be job related.<span style="mso-spacerun: yes"> </span>What
needs to be done?<span style="mso-spacerun: yes"> </span>Should he/she
have known this?<span style="mso-spacerun: yes"> </span>If the employee
needs to learn something, when and how can they find it?<span style="mso-spacerun: yes">
</span>Is this something this person can do?<span style="mso-spacerun: yes">
</span>If, in this analysis, it begins to look more like a personality conflict,
or that you found someone you want to bring in to the company and you need that
spot, then reexamine the whole issue.<span style="mso-spacerun:
yes"> </span>Those are the kinds of actions that can lead to
misunderstandings, bad employee relations and lawsuits.<span style="mso-spacerun: yes">
</span>When you get to this point, you will know what to say to the employee.<span style="mso-spacerun: yes">
</span>Tell him/her what they need to do or stop doing.<span style="mso-spacerun: yes">
</span>Help him/her do so, if possible.<span style="mso-spacerun: yes"> </span>Write
in <u>your personal notes</u> (not the employee�s personnel file) the date and
content of that discussion.<span style="mso-spacerun: yes"> </span>Remember
you <u>want</u> the employee to succeed, you <u>want</u> him/her to do a good
job.</font></p>
<p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in;mso-list:l2 level1 lfo1;
tab-stops:list .25in"><font face="Verdana, Arial, Helvetica, sans-serif">2.<span style="font:7.0pt "Times New Roman"">
</span>After a reasonable time, if you see that the employee is not responding,
you then follow it up with a written notice.<span style="mso-spacerun: yes">
</span>This is not intended to be a strike two on the employee.<span style="mso-spacerun: yes">
</span>It is a benign action bringing him/her to focus on the problem.<span style="mso-spacerun: yes">
</span>Yes, it increases the pressure but its primary purpose is to improve the
performance.<span style="mso-spacerun: yes"> </span>However, you need to
state, even if only as a general disclaimer, that among the options to be
considered if the PIP is unsuccessful is termination of employment.</font></p>
<p class="MsoNormal" style="margin-left:.25in;text-indent:-.25in;mso-list:l2 level1 lfo1;
tab-stops:list .25in"><font face="Verdana, Arial, Helvetica, sans-serif">3.<span style="font:7.0pt "Times New Roman"">
</span>The last step is a written probation.<span style="mso-spacerun: yes">
</span>This occurs in the event that little or no improvement is evident.<span style="mso-spacerun: yes">
</span>You write up a probation letter stating the issue, indicating the date of
the verbal notification, the date of the written notice and the current
indicator of the failure to date.<span style="mso-spacerun: yes"> </span>The
probation should normally be for 30 days.<span style="mso-spacerun: yes"> </span>It
should call for a complete concentration on the problem.<span style="mso-spacerun: yes">
</span>State that if at any time during this probation it becomes evident that
this process is fruitless, the probation will end and termination will follow.<span style="mso-spacerun: yes">
</span>You still want to encourage success.<span style="mso-spacerun: yes">
</span>It�s a fine line, but if it succeeds, you will have a valuable
employee.<span style="mso-spacerun: yes"> </span>If it fails, you can take
comfort in the fact that you truly tried to help this individual.<span style="mso-spacerun: yes">
</span>Further, if this leads to a discrimination charge or a court case, you
can demonstrate that the job was not being performed adequately and that the
individual was unable or unwilling to do so after documented opportunities.<span style="mso-spacerun: yes">
</span>The key to this is your motivation, your goal behind the actions.<span style="mso-spacerun: yes">
</span>It should not be 3 steps to termination (progressive discipline) but
success through communication (Performance Improvement Program).<span style="mso-spacerun: yes"> </span></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif">(For
examples of the notices, see our website, under HR University On-line,
Terminating Employment, Part I.)</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif">Bill
Cook<br>
President<br>
HRA</font></p>
<hr width="75%">
<h3><font face="Verdana, Arial, Helvetica, sans-serif"><b><u>Q & A</u></b></font></h3>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif">Question:</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif"><b><u>Q:</u></b>
One of my employees had an emergency injury and she and the company were told by
the emergency room doctor that she was okay to return to work.<span style="mso-spacerun: yes">
</span>The employee says it still hurts and wanted to go to her own doctor.<span style="mso-spacerun: yes">
</span>After three days she still has not been to her doctor.<span style="mso-spacerun: yes">
</span>We have directed her to return to work.<span style="mso-spacerun: yes">
</span>Can�t we just terminate her?</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif"><b><u>A:</u></b>
Yes.<span style="mso-spacerun: yes"> </span>It would be best if your
employee handbook (policy manual) had a statement covering unexcused absences.<span style="mso-spacerun: yes">
</span>If it does, follow it.<span style="mso-spacerun: yes"> </span>Otherwise
she is on an extended absence and cannot produce an acceptable reason.<span style="mso-spacerun: yes">
</span>You can terminate her, but you should inform her immediately.</font></p>
<hr width="75%">
<div align="center">
<table border="0" width="101%" height="376">
<tr>
<td width="100%" height="370">
<p align="left"><b><u><font size="4">Hitchhiking on the Information
Highway</font></u></b></p>
<p align="left"><b><font size="4" color="#FF0000">Dateline: July 2001</font></b></p>
<table border="0" width="42%">
<tr>
<td width="73%">
<p align="left"><b>Minimum Wage:</b></p>
</td>
<center>
<td width="91%">$5.15/hr.</td>
</center>
</tr>
</table>
<table border="0" width="100%">
<tr>
<td width="26%" valign="top"><b>Average Income:</b></td>
<td width="40%">
<table border="0" width="100%">
<tr>
<td width="100%">
<p align="center"><b>Hourly</b></td>
</tr>
<tr>
<td width="100%">
<table border="0" width="100%">
<tr>
<td width="17%">
<p align="center"><b><u>Jan.</u></b><br>
$14.02</td>
<td width="17%">
<p align="center"><b><u>Feb.</u></b><br>
$14.10</td>
<td width="17%">
<p align="center"><b><u>Mar.</u></b><br>
$14.17</td>
<td width="17%">
<p align="center"><u><b>Apr.</b></u><br>
$14.22</td>
<td width="17%">
<p align="center"><b><u>May</u></b><br>
$14.26</td>
<td width="17%">
<p align="center"><u><b>June</b></u><br>
$14.29</td>
</tr>
</table>
</td>
</tr>
</table>
</td>
<td width="34%">
<table border="0" width="100%" height="78">
<tr>
<td width="100%" height="40">
<p align="center"><b><u>Family of<br>
Four</u></b></td>
</tr>
<tr>
<td width="100%" height="30">
<p align="center">$59,900 (annual)</td>
</tr>
</table>
</td>
</tr>
<tr>
<td width="26%" bgcolor="#C0C0C0"><b>Poverty Level:</b></td>
<td width="40%" bgcolor="#C0C0C0"> </td>
<td width="34%" bgcolor="#C0C0C0">
<p align="center">$17,650 (annual)</td>
</tr>
<tr>
<td width="26%"></td>
<td width="40%"></td>
<td width="34%"></td>
</tr>
</table>
<table border="0" width="58%" bgcolor="#C0C0C0">
<tr>
<td width="25%" valign="top"><b>Gas Prices:<br>
</b><i>Regular</i></td>
<td width="25%">
<p align="center"><b>National Avg.<br>
<u>May 15</u></b><br>
$1.76/gal.</td>
<td width="25%">
<p align="center"><b>National Avg.<br>
<u>June 15</u></b><br>
$1.73/gal.</td>
<td width="25%">
<p align="center"><b>National Avg.<br>
<u>July 15</u></b><br>
$1.43/gal.</td>
</tr>
</table>
<table border="0" width="79%">
<tr>
<td width="50%">
<p align="left"><b>IRS Mileage Allowance (1-01-01):</b></p>
</td>
<center>
<td width="50%">34.5 cents per mile</td>
</center>
</tr>
</table>
<table border="0" width="54%" bgcolor="#C0C0C0">
<tr>
<td width="32%">
<p align="left"><b>Postage:</b></p>
</td>
<center>
<td width="68%"> </td>
</center>
</tr>
<tr>
<td width="32%">1 oz.</td>
<td width="68%">.34</td>
</tr>
<tr>
<td width="32%">Each additional ounce</td>
<td width="68%">.23*</td>
</tr>
<tr>
<td width="32%"><i>Postcards</i></td>
<td width="68%">.21*</td>
</tr>
<tr>
<td width="32%"> </td>
<td width="68%"><i>* Postal Rate changes effective July 1, 2001</i></td>
</tr>
</table>
<table border="0" width="38%">
<tr>
<td width="100%"><b>Where your federal tax dollar goes in 2001:</b></td>
</tr>
</table>
<table border="0" width="34%">
<tr>
<td width="67%">Social Security</td>
<td width="33%">
<p align="right">23%</td>
</tr>
<tr>
<td width="67%">Discretionary</td>
<td width="33%">
<p align="right">19%</td>
</tr>
<tr>
<td width="67%">Defense</td>
<td width="33%">
<p align="right">16%</td>
</tr>
<tr>
<td width="67%">Medicare (over 65 years of age)</td>
<td width="33%">
<p align="right">13%</td>
</tr>
<tr>
<td width="67%">Other</td>
<td width="33%">
<p align="right">11%</td>
</tr>
<tr>
<td width="67%">Interest on National Debt</td>
<td width="33%">
<p align="right">11%</td>
</tr>
<tr>
<td width="67%">Medicaid</td>
<td width="33%">
<p align="right">7%</td>
</tr>
<tr>
<td width="67%"></td>
<td width="33%">
<p align="right"><b>100%</b></td>
</tr>
</table>
<table border="0" width="34%" bgcolor="#C0C0C0">
<tr>
<td width="100%"><b>Where Uncle Sam gets his money in 2001:</b></td>
</tr>
</table>
<table border="0" width="34%" bgcolor="#C0C0C0">
<tr>
<td width="61%">Individual income tax</td>
<td width="39%">
<p align="right">50%</td>
</tr>
<tr>
<td width="61%">Payroll taxes</td>
<td width="39%">
<p align="right">32%</td>
</tr>
<tr>
<td width="61%">Corporate taxes</td>
<td width="39%">
<p align="right">10%</td>
</tr>
<tr>
<td width="61%">Other</td>
<td width="39%">
<p align="right">8%</td>
</tr>
<tr>
<td width="61%"> </td>
<td width="39%">
<p align="right"><b>100%</b></td>
</tr>
</table>
<table border="0" width="31%">
<tr>
<td width="25%">
<p align="left"><b><u>Population:</u></b></p>
</td>
<center>
<td width="75%"></td>
</center>
</tr>
<tr>
<td width="25%"><b>World</b></td>
<td width="75%">
<p align="center">6 billion</td>
</tr>
<tr>
<td width="25%"><b>U.S.</b></td>
<td width="75%">
<p align="center">282 million</td>
</tr>
</table>
<table border="1" width="77%" bgcolor="#C0C0C0">
<tr>
<td width="48%">
<p align="left"> </p>
</td>
<center>
<td width="14%" align="center"><b><u>Jan.</u></b></td>
<td width="14%" align="center"><b><u>Feb.</u></b></td>
<td width="14%" align="center"><b><u>Mar.</u></b></td>
<td width="14%" align="center"><b><u>Apr.</u></b></td>
<td width="14%" align="center"><b><u>May</u></b></td>
<td width="14%" align="center"><u><b>June</b></u></td>
</center>
</tr>
<tr>
<td width="48%">U.S. Civilian Workforce</td>
<td width="14%" align="center">141,955,000</td>
<td width="14%" align="center">141,751,000</td>
<td width="14%" align="center">141,868,000</td>
<td width="14%" align="center">141,757,000</td>
<td width="14%" align="center">141,272,000</td>
<td width="14%" align="center">141.354,000</td>
</tr>
<tr>
<td width="48%">Number Unemployed</td>
<td width="14%" align="center">5,950,000</td>
<td width="14%" align="center">5,936,000</td>
<td width="14%" align="center">6,088,000</td>
<td width="14%" align="center">6,402,000</td>
<td width="14%" align="center">6,169,000</td>
<td width="14%" align="center">6,422,000</td>
</tr>
<tr>
<td width="48%">Unemployment Rate</td>
<td width="14%" align="center">4.2%</td>
<td width="14%" align="center">4.2%</td>
<td width="14%" align="center">4.3%</td>
<td width="14%" align="center">4.5%</td>
<td width="14%" align="center">4.4%</td>
<td width="14%" align="center">4.5%</td>
</tr>
<tr>
<td width="48%">Number Placed in Jobs (net)</td>
<td width="14%" align="center">224,000</td>
<td width="14%" align="center">135,000</td>
<td width="14%" align="center"> </td>
<td width="14%" align="center"> </td>
<td width="14%" align="center"> </td>
<td width="14%" align="center"> </td>
</tr>
</table>
<table border="0" width="77%" bgcolor="#C0C0C0">
<tr>
<td width="50%"><b>Average Cost of replacing one employee:</b></td>
<td width="50%">$36,000</td>
</tr>
</table>
<table border="0" width="85%">
<tr>
<td width="15%">
<p align="left"><b>Productivity Rates (2000)</b></p>
</td>
<center>
<td width="14%" align="center" bgcolor="#0000FF"><b><u><font color="#FFFFFF">1st
Qtr.</font></u></b></td>
<td width="14%" align="center" bgcolor="#0000FF"><b><u><font color="#FFFFFF">2nd
Qtr.</font></u></b></td>
<td width="14%" align="center" bgcolor="#0000FF"><b><u><font color="#FFFFFF">3rd
Qtr.</font></u></b></td>
<td width="14%" align="center" bgcolor="#0000FF"><b><u><font color="#FFFFFF">4th
Qtr.</font></u></b></td>
<td width="14%" align="center"><b><u>1st Qtr.<br>
2001</u></b></td>
<td width="15%" align="center"><b><u>2nd Qtr.<br>
2001</u></b></td>
</center>
</tr>
<tr>
<td width="15%"></td>
<td width="14%" align="center" bgcolor="#0000FF"><font color="#FFFFFF">2.1%</font></td>
<td width="14%" align="center" bgcolor="#0000FF"><font color="#FFFFFF">2.6%</font></td>
<td width="14%" align="center" bgcolor="#0000FF"><font color="#FFFFFF">3.0%</font></td>
<td width="14%" align="center" bgcolor="#0000FF"><font color="#FFFFFF">2.2%</font></td>
<td width="14%" align="center">2.1%</td>
<td width="15%" align="center">unavailable</td>
</tr>
</table>
<table border="0" width="72%" bgcolor="#C0C0C0">
<tr>
<td width="25%">
<p align="left"><b>Absentee Rates (annualized)</b></p>
</td>
<center>
<td width="19%" align="center"><b><u>1997</u></b></td>
<td width="20%" align="center"><b><u>1998</u></b></td>
<td width="20%" align="center"><b><u>1999</u></b></td>
<td width="20%" align="center"><b><u>2000</u></b></td>
</center>
</tr>
<tr>
<td width="25%"> </td>
<td width="19%" align="center">1.5%</td>
<td width="20%" align="center">1.6%</td>
<td width="20%" align="center">1.7%</td>
<td width="20%" align="center">1.7%</td>
</tr>
</table>
</td>
</tr>
</table>
</div>
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