Handling Underperformance Without Formal PIPs

Not all performance issues require formal intervention. In many cases, underperformance can be addressed effectively through early identification, structured conversations, and targeted support, without initiating a Performance Improvement Plan (PIP).

This article explains how organisations can manage underperformance proactively and constructively, while preserving trust, engagement, and productivity.

Understanding Underperformance in Context

Underperformance does not always indicate low capability or lack of effort. It may arise due to:

• Role changes or unclear expectations

• Skill gaps caused by business or technology shifts

• Workload imbalance or process inefficiencies

• Limited feedback or delayed course correction

Treating every performance dip as a disciplinary issue often escalates problems unnecessarily.

Why Avoid Jumping Directly to PIPs

Formal PIPs are structured and documented interventions. While useful, they should be used only when informal measures have failed.

Early-stage interventions help:

• Resolve issues faster

• Reduce anxiety and defensiveness

• Preserve employee-manager relationships

• Avoid unnecessary documentation and escalation

Informal Approaches to Managing Underperformance

1. Clarifying Expectations

Many performance issues stem from unclear or shifting expectations. Managers should reconfirm:

• Role priorities

• Output standards

• Timelines and dependencies

2. Regular Performance Check-ins

Short, frequent conversations allow managers to:

• Identify issues early

• Offer guidance in real time

• Adjust goals if required

These discussions should be factual and forward-looking.

3. Targeted Skill Support

When gaps are capability-related, focused support is more effective than formal correction.
Examples include:

• On-the-job coaching

• Peer mentoring

• Short training interventions

4. Workload and Process Review

Underperformance may reflect system issues, not individual failure.
Managers should review:

• Task allocation

• Process bottlenecks

• Dependency delays

Correcting these often improves performance without further action.

Sample View: Informal Performance Support Options

Checklist: Before Escalating to a Formal PIP

☐ Performance expectations were recently clarified
☐ Regular feedback has been provided
☐ Skill gaps were identified and addressed
☐ Workload and process constraints were reviewed
☐ Employee response and effort were observed over time

If most of these are unchecked, a PIP may be premature.

Role of HR in Informal Performance Management

HR supports informal performance handling by:

• Guiding managers on early interventions

• Encouraging documentation of key conversations

• Preventing premature escalation

• Ensuring fairness and consistency

HR’s role is to enable resolution, not accelerate formality.

When Informal Methods Are No Longer Enough

Formal action may be required when:

• Performance gaps persist despite support

• Expectations are clear and documented

• Capability is demonstrated but effort remains low

• Business impact becomes significant

At this stage, a structured PIP provides clarity and fairness.

Key Takeaway

Effective performance management does not begin with formal plans. Most underperformance can be resolved through early, structured, and human conversations. Formal PIPs should be a considered step, not a default reaction.