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Glossary Terms
Glossary of Human Resources Management and Employee Benefit Terms
Table of contents

Performance improvement

Performance improvement is a method used by organizations to elevate employee performance during a quarter. Here, the employers conduct a formal meeting to discuss performance improvement goals with the employees.

What is performance improvement?

Performance improvement is a systematic approach to analyze performance gaps and develop strategies to enhance individual or organizational effectiveness. It involves identifying areas of weakness, setting achievable goals, implementing changes, and monitoring progress.

What are employee performance improvement strategies?

Strategies to improve performance can be proactive or reactive, depending on the situation. They aim to build confidence, sharpen skills, and promote accountability.

  • Set clear goals with measurable outcomes
  • Offer regular, constructive feedback
  • Provide training and upskilling resources
  • Align responsibilities with individual strengths
  • Monitor progress with weekly or monthly check-ins
  • Reward progress, not just end results
  • Create mentorship or peer support structures
  • Encourage autonomy and decision-making

Why is performance improvement important?

Performance improvement matters for several reasons:

  • Improved productivity: Helps optimize workflows, remove inefficiencies, and boost individual and team output.

  • Enhanced employee engagement: Offers growth opportunities, making employees more motivated and involved.

  • Better morale: Seeing progress boosts satisfaction, encouraging ownership and higher contribution.

  • Cost savings: Reduces waste, errors, and overhead by streamlining operations and resources.

  • Higher retention: Growth paths increase loyalty and reduce hiring and training costs.

  • Adaptability: Helps teams adjust to market shifts with new strategies and improved processes.

  • More innovation: A supportive environment inspires fresh ideas and creative problem-solving.

  • Stronger leadership: Equips leaders to coach and motivate teams for higher performance.

  • Culture of improvement: Fosters a mindset where teams constantly seek ways to improve.

  • Goal alignment: Ensures team efforts support organizational goals and business outcomes.
  • Staying competitive: Encourages adoption of new tools and practices to stay ahead of rivals.

Who is responsible for employee performance improvement?

Both managers and HR teams play a role, but employees also share responsibility. It’s a collaborative effort with shared accountability.

  • Managers: Identify issues, provide support, and set expectations
  • HR: Offer tools, training, and legal guidance
  • Employees: Engage in feedback, follow through on goals
  • Mentors or team leads: Support informal growth and coaching

When should you start a performance improvement process?

Start as soon as consistent underperformance is observed—don’t wait until it becomes a bigger problem. Early intervention helps reduce stress for everyone involved.

  • After repeated missed deadlines or poor outcomes
  • When feedback isn’t resulting in change
  • If attitude or behavior affects the team
  • During mid-year or annual performance reviews

Where should performance improvement actions be documented?

Proper documentation ensures transparency and consistency. It also protects the organization legally if further action is required.

  • In formal PIP (Performance Improvement Plan) documents
  • Employee review or appraisal systems
  • Emails or written feedback summaries
  • HR records and meeting notes

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

How to improve employee performance effectively?

Improving employee performance means offering clarity, support, and room to grow. Tailor efforts to each individual while setting fair expectations.

  • Identify root causes—lack of skill, motivation, or clarity
  • Create a specific plan with timelines and targets
  • Offer coaching, mentoring, or external training
  • Set weekly or monthly check-ins to track progress
  • Acknowledge improvements and adjust as needed
  • Be honest but empathetic in all feedback
  • Remove roadblocks or internal friction limiting output

What are employee performance improvement examples?

Examples help clarify what improvement looks like in action. These range from minor course corrections to structured plans.

An employee who repeatedly misses deadlines may be enrolled in a time management training program and given a project plan template. Another who lacks technical skills might be assigned a mentor for on-the-job learning. In sales, low-converting reps may receive pitch coaching or role-playing exercises to improve communication and closing techniques.

What is the underperforming employee performance improvement process?

The performance improvement process for underperforming employees is usually formal and structured. It outlines the issue, sets goals, and offers support to meet those goals within a defined period.

  • Start with a clear, honest feedback discussion
  • Draft a PIP with timelines, goals, and responsibilities
  • Provide training, mentorship, or tools to support success
  • Conduct regular check-ins to review progress
  • Document all steps for transparency and legal protection

What are employee performance areas which need improvement?

Some areas show up frequently across roles and departments. Knowing them helps managers give more targeted feedback.

  • Time management and meeting deadlines
  • Communication—verbal, written, or cross-functional
  • Attention to detail and quality control
  • Adaptability to change or feedback
  • Initiative and accountability
  • Collaboration and conflict resolution

What are employee performance improvement suggestions?

Sometimes all it takes is a few helpful suggestions to turn performance around. These should be practical, respectful, and easy to act on.

  • Break large tasks into smaller, manageable parts

  • Ask for feedback after completing key tasks

  • Prioritize tasks with a to-do list or planner

  • Attend team huddles or skill-building workshops

  • Clarify doubts immediately rather than hesitating

What are the different types of employee performance improvement?

Improvement can be formal or informal, reactive or proactive. Understanding the types helps tailor the approach.

  • Performance Improvement Plans (PIPs): Formal documents with timelines, goals, and accountability
  • Coaching: One-on-one guidance, often informal and ongoing
  • Skill-based training: Focused on technical or role-specific gaps
  • Behavioral coaching: Targeted at attitude, soft skills, or teamwork
  • Mentoring programs: Peer or senior mentorship to support growth
  • Recognition-led improvement: Uses praise and rewards to reinforce good habits

What is a performance improvement email to employee?

A performance improvement email is a formal communication that outlines observed issues, expectations moving forward, and next steps. It should be clear, respectful, and action-focused.

  • Summarize the performance concerns
  • Share expectations and timelines
  • Offer resources or support available
  • Set the tone for collaboration, not punishment
  • Mention follow-up meetings or check-ins
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