To effectively address poor or underperforming employees, a
company must have a comprehensive Performance Improvement Plan (PIP) in place.
Without a PIP in place, any purported action taken on the employees would
simply be a sham and, naturally, will not be effective. PIP involves
documenting problems and communicating those problems to employees. The
effectiveness of a PIP relies heavily on documentation, which could deter
frivolous lawsuits and complaints by employees against the company. Recent
Court decisions show that non-compliance to the right approach of dealing with
non-performer have resulted in costly financial consequences to employers.