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A Performance Improvement Plan helps managers and employees address work performance issues in a structured, documented way. When an employee isn't meeting job expectations in Indonesian companies, this plan creates clear goals, timelines, and specific steps for improvement, aligned with Indonesia's Manpower Law No. 13/2003.

The plan typically runs for 30-90 days and includes regular check-ins, training support, and measurable targets. It serves as both a development tool and a legal safeguard, showing that the company made good-faith efforts to help the employee succeed before considering more serious actions like termination - an important consideration under Indonesian labor regulations.

Start a Performance Improvement Plan when an employee shows a consistent pattern of underperformance or behavioral issues that impact their work quality. Common triggers include missed deadlines, poor quality output, attendance problems, or failure to meet key performance indicators - especially after verbal feedback hasn't led to change.

Under Indonesian labor laws, implementing this plan early helps protect both employer and employee interests. It provides a documented path to improvement before considering termination, which is strictly regulated in Indonesia. The plan becomes particularly valuable when performance issues might affect team dynamics, customer relationships, or company compliance requirements.

• Basic 30-Day Plan: Focuses on specific performance metrics and weekly check-ins, commonly used for sales teams or customer service roles
• Behavioral Improvement Plan: Addresses conduct issues, attitude problems, or workplace relationship concerns while following Indonesian labor guidelines
• Skills Development PIP: Emphasizes training needs and capability building, often including mentorship components
• Compliance-Based Plan: Targets regulatory or safety protocol adherence, particularly important in manufacturing or financial sectors
• Progressive Improvement Plan: Features graduated milestones over 60-90 days, commonly used for management positions

• HR Managers: Draft and oversee Performance Improvement Plans, ensuring compliance with Indonesian labor laws and company policies
• Direct Supervisors: Identify performance issues, set improvement targets, and conduct regular progress meetings
• Employees: Must acknowledge, follow, and meet the plan's objectives within specified timeframes
• Department Heads: Review and approve plans, especially for critical roles or senior staff members
• Union Representatives: May participate in plan development when required by collective labor agreements
• Legal Department: Reviews plans to ensure alignment with Indonesian employment regulations and minimize legal risks

• Performance Data: Collect specific examples of performance issues, including dates, incidents, and previous feedback given
• Job Description: Review current role requirements and expected performance standards
• Goals and Metrics: Define clear, measurable improvement targets aligned with Indonesian workplace standards
• Timeline Planning: Set realistic deadlines for each improvement milestone, typically 30-90 days
• Support Resources: List available training, mentoring, or tools to help achieve goals
• Documentation Check: Ensure all forms comply with Indonesian labor laws and company policies
• Meeting Schedule: Plan regular progress review sessions with specific dates and attendees

• Employee Details: Full name, position, department, and employment ID as required by Indonesian labor records
• Performance Issues: Specific documented concerns with dates and examples
• Improvement Targets: Clear, measurable goals aligned with job description and company standards
• Timeline Section: Start date, milestone dates, and completion date within reasonable timeframes
• Support Measures: Detailed training, resources, and assistance to be provided
• Progress Review: Schedule of check-ins and evaluation criteria
• Consequences Statement: Potential outcomes if goals aren't met, compliant with Law No. 13/2003
• Acknowledgment Block: Signatures from employee, supervisor, and HR representative

A Performance Improvement Plan differs significantly from a Performance Review Document in both purpose and application. While they're related to employee performance, they serve distinct functions in Indonesian workplace management.

• Purpose and Timing: PIPs are remedial tools used when performance issues arise, while Performance Reviews are regular evaluations of all employees, typically conducted annually or semi-annually
• Legal Weight: PIPs carry stronger legal implications under Indonesian labor law, often serving as documentation before disciplinary actions, while Performance Reviews primarily focus on career development and compensation decisions
• Structure: PIPs include specific improvement targets, deadlines, and consequences, whereas Performance Reviews broadly assess past achievements and set future goals
• Duration: PIPs have defined timeframes (usually 30-90 days) with regular check-ins, while Performance Reviews are point-in-time assessments with longer-term development plans