The All Aboard Newsletter

Hey everyone, and welcome back to another weekly edition of the All Aboard Newsletter!

This week, we’re talking about something that we all deal with eventually: A struggling employee on our team.

No matter the role, whether it be a sales producer, customer service person, or an admin, everyone has goals and standards (or at least they should).

But what happens when those standards aren’t being met? How do we address it effectively without falling into the trap of micromanaging?

Should we fire fast? Or is there a shot at getting them back on track?

What if I told you that 70% of the time someone starts to fall below standards, we get them back on track? Well, I’m going to tell you how we do it.

It all starts and ends with the Performance Improvement Plan (PIP).

As always, the video will have MORE information and MORE tips than in the written portion, so if you’re looking for the most out of this newsletter, check out the video!

Lets get into it!

Get Struggling Producers back on track with PIPs

If the embedded link doesn’t work, you can access the video here: Click Me

For the best experience and most information, I highly suggest you click the video!

Why Use Performance Improvement Plans (PIPs)?

Its completely normal to feel frustration, impatience, anger, or hopelessness when a person on your team isn’t performing up to par.

Unfortunately, the natural reaction for many of us is to micromanage our teams to drive more results. As entrepreneurs, its normal to want to feel “in control” of your environment.

After all, you’ve been able to make things happen throughout your career. Thats why you’re in your current position. That’s why you’ve chosen to work for yourself.

But latching on and micromanaging is counter-productive. It only leads to more frustration for the leader AND the struggling employee.

So what do we do instead?

We refer back to our goals and standards, and we do so in a structured way. This is where the PIP comes in handy.

A PIP provides a structured and standardized process to help a underperforming employee get back on track.

Hiring is expensive. Training is expensive. And when hire a new employee, we’re not 100% sure they’re going to work out (see last week’s video).

It is cheaper, faster, and better for culture to get an existing employee who is not hitting goals back on track than it is to hire and train someone new. I also believe its easier to save an employee than replace them.

Many people think that “this generation doesn’t want to work” or “this generation just can’t handle the phones.”

With all due respect, thats horseshit. People say that about every generation, including yours (however old you are), and if you believe that, you’re doing yourself a disservice. People DO want to work, and they DO want to make money, but people cannot succeed if they do not know the goal, have a roadmap to hit that goal, or the help and resources to do it.

Some people have poor work ethic, true. But thats not a generational thing. You hired these people for a reason, so lets tap into that potential.

We’re the leaders, so lets lead them.

What PIPs Are Not

Let’s start by clearing up some misconceptions about PIPs.

1. They are not an excuse to fire someone.

   
   Employees often think that being placed on a PIP means they’re about to be fired. That the PIP is just a formality to check a box in HR before we’re “allowed” to fire them legally.

   But that is rarely the case. At Peachy Insurance and Next Call Club we make it clear that a PIP is a tool for improvement, not an professional death sentence. If we didn’t want someone here, we’d simply let them go.

   We hire in at-will states. We don’t need a reason, but its better for everyone and our culture if we give people a chance to correct their habits and performance.

   NOTE: This is not legal advice - Always check with your state’s labor laws, or the state the employee works in. I use a PEO that helps me stay compliant with state laws (I’m remote and in something like 25 states now). Let me know if you want an intro for help on this.

2. They are not one-sided.

   
   A PIP should be a two-way street. Ultimately, we have a relationship with our employees and they have a relationship with us. It takes two to tango in a relationship. So why would a PIP be a one-sided ultimatum?

   We can’t expect improvement if we don’t understand what’s preventing the employee from meeting their goals. It’s essential to have a conversation about what they need to be successful and what habits they need to build or break.

3. They are not an excuse to micromanage.

   
   Micromanaging only makes things worse. Sometimes, when I’m stressed and lacking self-control, I’ll start to look at things more closely than normal. All it does is piss me off. Why? Because I’m looking for problems.

   The mind finds what its looking for.

   A PIP is about setting clear expectations and providing support to help employees meet them, not about nitpicking every little action. If we help them see what they need to do to be successful, their mind can find what it is they’re supposed to be looking for.

So now that we know what PIPs are NOT, lets look at what they are…..

What PIPs Are:

1. A reality check.
   A PIP provides an opportunity to assess what’s truly happening and bring both parties (employee and employer) to the table for a serious conversation.

   Sometimes the problem is not as simple as the employee not trying hard enough. Sometimes it is.

   A collaborative conversation can reveal obstacles we weren’t aware of OR give them a chance to wake up and admit to themselves they’re not giving it their all.

   This mutual understanding sets the stage for improvement. The PIP is a reality check. There is something about putting expectations in writing that makes them get taken more seriously.

   Try it for yourself. If you have someone who you’ve been asking to do xyz or stop doing xyz and you’ve had to ask multiple times, send them an email in writing asking them to respond and acknowledge your email. The entire vibe is different right?

   We don’t want to scare people. But sometimes we do need them to wake up, and sometimes, WE need to wake up and swallow some hard truths. Maybe we have expectations that are not realistic given the support and resources the team have and WE are the ones that need to change.

2. An opportunity to set boundaries.

   
   A PIP sets clear boundaries for behavior and performance.

   If an employee is consistently late or not meeting sales targets, the PIP outlines what needs to change and establishes consequences for failure to improve.

   It also gives the employee an opportunity to speak freely to us, the leaders, on what they need help with. Perhaps we’re bogging a salesperson down with service work and they don’t have the time to get to calls. Maybe we’re asking service to take more calls, but they’re stuck doing a ton of rewrites.

   I’ve experienced this first hand. I was changing goals without understanding the team’s day to day challenges. Learn from my mistake: Before you change something, seek to understand it first.

   Boundaries are important. Boundaries are healthy. We all need them.

3. A chance to enhance your culture.

   
   By holding everyone to the same high standards, a PIP reinforces the importance of accountability within your agency.

   It shows your team that you care about helping people improve, not just punishing mistakes.

   It can also foster a culture of development and growth, as employees see that getting on a PIP doesn’t mean the end of their career—it means a chance to reset, and get back on a growth trajectory.

   When we let poor performers continue to perform poorly, everyone else has to pick up their slack. This leads to resentment, slipping standards, and lower morale for everyone. Everyone knows culture is better when you’re winning .vs. when you’re losing.

How to Present a PIP Effectively

Understanding what PIPs are and aren’t is valuable. So is knowing how and when to use them.

However, the most important aspect of ensuring the success of a PIP with a struggling is how you roll the performance plan out. But I’m going to give you the 5 steps and make it easy. Here is how you do it:

1. Set the tone.
   Start the conversation by being direct but positive. Let the employee know that you want them to succeed, and this plan is a tool to help them improve, not a prelude to termination. We tell people point blank: “We want you here, and we know you can do this or we wouldn’t even bother with the PIP, we’d just move on.”

2. Be collaborative.
   Work with the employee to understand what they need from you. This should be a two-way conversation where you provide support but also ask them to step up in areas they’re falling short. If someone wants extra help, training, or resources during the PIP, so long as they are reasonable, we’ll do it. Some examples are more training, helping process binds, and doing administrative work temporarily while they focus on improving. I’m willing to invest in them to get them back on track, and so should you if you feel like their work ethic and culture fit makes sense.

3. Create a roadmap for success.
   Clearly outline the steps they need to take to improve, whether it’s working extra hours, attending additional training, or making more calls. Make sure they understand exactly how to achieve success. If they don’t know the goal, how can we expect them to hit the goal?

4. Set a timeline.
   A PIP can be anywhere from 30 to 90 days. Make sure there’s a clear timeline for milestones and goals. I recommend checking in weekly and setting “hard outs” of the PIP that lead to termination if people are not on pace for goals. If you decide to do a 90 day pip and they’re not on pace at day 45 and can’t make up the gap, rip off the band-aid.

5. Do weekly check-ins.
   Don’t wait until the end of the timeline to check progress. Schedule weekly check-ins to see if they’re on track. This helps you catch problems early without micromanaging, and helps ensure success.

Often, people underperform because they’re in the wrong role for their personality type. Thats where this week’s sponsor comes in…..

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I am a firm believer that anyone can be successful with the right guidance and work ethic, but that doesn’t necessarily mean they’ll be happy.

There have been more employees I could count that were amazing at sales but absolutely hated it.

Job satisfaction is correlated with job performance, and if someone is in the wrong role, they’re not going to live up to their potential (in most cases).

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The Habit Loop

One of the key elements to a successful PIP is building new habits and/or breaking old ones. Habits compose of three portions: Cue, Routine, Reward. This cycle plays a significant role in breaking bad habits or building better ones. By using a PIP to establish new, productive habits, you’re setting the employee up for long-term success.

There is a graphic of the habit loop in the video to help you get a visual representation of what this looks like and hear more about what I have to say on habits as it pertains to PIPs.

Safeguards and Next Steps

At Peachy Insurance, we use the 12-month rule when it comes to PIPs. This rule states that an employee cannot go on a PIP more than once within 12 months. If someone becomes eligible for a PIP for a 2nd time in a 12 month period, we terminate employment.

This helps prevent the cycle of low performance, followed by a PIP, higher performance, then a drop back down again once the extra accountability is gone. We only want to offer PIPs to employees who are truly engaged in the process and willing to change.

Something to keep in mind is the “reward” portion of the habit loop. When someone gets off a PIP, it’s a huge win. Consider a small reward (nothing substantial) as a result of getting of the PIP. Even if its a short, hand written note telling them you’re proud of them, it can go a really long way.

Additional Thoughts

Performance Plans are a tool in your toolbox. They’re about helping people grow, develop, and live up to their potential. They are a tool to help build a better team and protect your culture by adding in an extra layer of accountability.

We can work with someone who is trying and failing. That is a person who is perfect for a well structured PIP.

We cannot work with someone who has all the ability in the world, but has no work ethic. We have no time for patience for that.

So, If you’re looking to implement PIPs in your agency and want our PIP template shoot me an email. I’m happy to help and share our template.

Thank you so much for reading.

If you have questions or feedback, I’d love to hear from you!

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