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Outsourcing operations hinge on service quality, consistency, and delivery. To ensure success, business process outsourcing (BPO) companies must proactively maintain and enhance employee performance.
A robust action plan to help employees improve performance and address issues is essential to sustaining service excellence and competitive advantage. This article explores how BPO firms can effectively leverage performance improvement plans (PIPs) to achieve operational success and long-term growth.
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Fundamentals of performance improvement plans in BPO
Understanding the fundamentals of PIPs is critical to developing and implementing practical action plans. Below, we define PIPs in the BPO context, their importance, and the essential factors that comprise them.
What is a BPO performance improvement plan?
First, what is BPO? It is a strategy where a service provider runs particular business processes on behalf of an organization.
On the other hand, a PIP is a document and process typically used by managers to help employees struggling to meet expectations. PIPs are also ideal for training employees seeking to move vertically or laterally in an organization.
Satisfying clients and meeting targets are critical in the BPO sector. A PIP helps ensure that all outsourcing team members perform well toward their goals.
Why are PIPs important in BPO?
BPO companies help clients keep their businesses running smoothly by consistently providing high-quality service. Among the benefits of a performance improvement plan is having a documented strategy to address problems before they become severe and affect service delivery.
For example, if a BPO employee is falling short of meeting the weekly quota, a PIP can help solve the problem. With a tailored plan, the manager can guide them in boosting their efficiency and productivity. It might include providing additional coaching sessions or setting smaller, more manageable goals.
Instead of terminating the employee and looking for a replacement, the company gives them a chance to step up and improve with clear guidelines and support. This saves time and money that would otherwise be spent on recruitment and training. Moreover, the employee feels valued by the company and is more likely to improve.
What are the essential elements of an effective PIP?
Every PIP is unique to each employee. BPO managers must customize these plans to target improvements. Regardless, every performance improvement plan template includes most, if not all, of the following elements:
- Clarity. The plan must clearly state areas to improve and success metrics. Make sure the employee understands the goals well.
- Time frame. How much time does the employee have? The plan should set a realistic period for meeting the goals.
- Support. What support does the company provide? The plan must mention whether more training or frequent feedback is necessary to help the employee improve.
- Check-ins. The manager and employee must regularly discuss progress and make any necessary adjustments to the plan. This ensures close guidance and shows employees that their progress matters.
- Outcomes. What happens if the employee fails to meet the set goals within the time frame? The plan should also clearly outline the outcomes.
Identifying performance issues in BPO teams
BPO performance improvement plans enhance employees’ poor work quality, but why do they have subpar performance in the first place? It stems from various reasons, including disengagement.
A 2023 Gallup report stated that disengaged employees cost companies $8.8 trillion worldwide. In the BPO sector, this lack of engagement might lead to less work, poor customer service, and dissatisfied clients.
Spotting issues early is critical to keep the team productive and effective. Once they are identified, managers can then develop PIPs to address the problems.
Techniques for monitoring and identifying underperformance
Sometimes, signs of underperformance in BPO teams are challenging to spot. Follow these techniques for more effective identification and monitoring:
- Conducting regular reviews. Conduct consistent reviews to detect any decline in work quality quickly. The frequency of reviews varies based on the nature of the work. Weekly reviews are great for fast-paced environments, while monthly reviews are for established roles.
- Gathering feedback. Ask managers and clients about each team member’s performance. Their feedback can provide early signs of performance issues between reviews. Valuable feedback is relevant, objective, and constructive.
- Monitoring key performance indicators (KPIs). Look at the numbers. Figures such as call times and customer satisfaction reveal potential issues that might not be apparent through other means. Shorter call times and improved customer satisfaction suggest the employee has become more efficient.
- Performing surveys. Anonymous feedback about workplace experiences is valuable in revealing potential issues that are harder to spot. The surveys should feature Likert scale questions that yield quantifiable data and open-ended questions that allow employees to provide detailed feedback in their own words.
Early detection of underperformance is crucial to prompt implementation of effective PIPs. The earlier companies make the employee performance improvement plan, the better the chances of solving the problems.
Common performance challenges in BPO teams
Identifying underperformance is just one step of the PIP process; determining its causes is another. Managers must understand the reasons behind non-satisfactory results to develop an effective action plan.
Usually, employees struggle due to unclear role expectations. Job description confusion might prevent them from doing their work well. Insufficient training might also be a factor if employees are not skilled enough to accomplish their tasks.
Additionally, when feedback is rare or unhelpful, employees might not know what they need to improve or reinforce. A poor office environment and personal issues might also significantly affect performance.
Note that these performance issues don’t just affect their work. They might also lead to increased turnovers, contributing to the sector’s high average rates, among other BPO challenges.
Setting clear and achievable objectives in PIPs
When creating a BPO performance improvement plan, setting clear and realistic goals for the employee is essential. These goals should be straightforward and relevant to the areas where the employee needs to improve.
Each goal should have a specific target that both the employee and their manager can check. It helps keep the employee motivated because they can see their progress.
In addition, each goal should have a clear deadline. This keeps the employees focused as they work toward improvement in a timely manner.
Goals also need to be realistic and attainable based on the employees’ skills and resources. If goals are ambitious, employees might get frustrated and give up.
For instance, if a team member’s performance has hit rock bottom, reaching acceptable performance levels is more plausible than outperforming the entire team.
Furthermore, managers should create measurable objectives. A goal such as “improve teamwork skills” lacks direction, making it nearly impossible to determine progress.
If an employee struggles with teamwork, a good goal would be to let them lead two team meetings monthly. This objective is clear, quantifiable, and directly addresses the employee’s performance issues.
Addressing underperformance: Strategies and solutions
Once clear and achievable objectives are set in a PIP, the next step is addressing the issues. Managers can combine supportive strategies and practical solutions to help employees meet their goals:
- Understand the root cause. Identify why the employee is underperforming. It can be due to a lack of skills, unclear job expectations, or personal issues. Understanding the root cause is crucial for addressing it effectively.
- Provide resources. Ensure the employees have what they need to improve. Provide training, tools, or access to a reliable mentor. Tailor the support to address their specific needs directly.
- Give regular feedback. Maintain regular communication with the employee. Use these discussions to provide feedback, track progress, and offer guidance. Keeping feedback constructive and supportive is key.
- Adjust goals as needed. Be prepared to adjust the goals in the PIP if necessary. If the original objectives prove challenging or circumstances change, revising them can keep them achievable and maintain employee motivation.
- Create a supportive atmosphere. Companies lose around $1 trillion yearly in lost productivity due to anxiety and depression. PIPs might exacerbate these mental health issues by increasing stress levels and pressure to perform. Mitigating this risk requires an empathetic approach that ensures the PIP becomes a tool for support and growth.
- Evaluate the results. At the end of the PIP period, assess the overall effectiveness of the improvement efforts. Look at how the employee’s performance has changed and affected the team and company outcomes. Use this evaluation to refine future PIPs and other management strategies.
The bottom line
Performance improvement plans are vital in the fast-paced and ever-changing BPO sector. They help outsourcing teams meet and exceed performance goals, elevating operations’ effectiveness.
Integrating the practices discussed in this article is essential to tackling performance challenges proactively. Remember, PIPs are not just corrective measures—they are foundations for a more engaged and productive workforce.
Let’s connect if you want to embrace comprehensive performance strategies. Unity Communications offers a wealth of resources to help your business grow.
