Why Performance Improvement Plans don't Work for Millennials

Feedback is a gift, but growth is intentional. The goal for Performance Improvement Plans (PIPs) is to improve employee workflow. Performance plans create a negative working culture and don't help millennials improve their work; it makes them want to quit their jobs. Companies are losing an average 30 billion dollars annually on Millennial retention. Here are the reasons why PIPs fails everyone:  

Millennials don’t know that they are in danger

Most managers are concerned with keeping up with the company standards.  According to the Balance “Effective managers discuss both positive performance and areas for improvement regularly, even daily or weekly.” Managers create the habit of negating communication with employees. If daily and weekly communication is implemented then an employee can succeed.


Managers don’t have enough time

Let’s face it managers have several hats to wear. If a system for giving constructive feedback isn’t in place by a company it will not be given properly. The how and when managers should help millennials improve will simply be lost in the track of balance sheets and daily recaps.  

Not clear on why employee has poor performance

According to SHRM, there are several reasons why a millennial doesn’t have clarity on their performance.

  1. Employee didn’t have proper training when hired by the company

  2. Expectations were not clear

  3. Roadblocks for success were not fully examined

  4. Employee didn’t know what tools are necessary for improvement

How can managers improve the performance of their Millennials? Create effective feedback loops.

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