Many managers dread the performance improvement process, and would rather terminate an employee than implement a performance improvement plan (PIP). However, provided that employees are motivated and managers approach the process with the right attitude, PIPs are cheaper and more effective than terminating employees and have the best chance of getting performance back on track.
The expenses of recruiting and training another employee are significant. Given the high cost of employee turnover, termination should not be the first solution to employee underperformance. An effective performance improvement plan can help organizations address underperformance without incurring high turnover costs.
This tool will help you compare the cost of terminating and replacing employees to the cost of an effective performance improvement program. Use it to persuade your stakeholders that a performance improvement program makes sense for your organization.