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The first step in any effort to improve employee performance is counseling or coaching. Counseling or coaching is part of the day-to-day interaction between a supervisor and an employee who reports to her, or an HR professional and line managers.

Coaching often provides positive feedback about employee contributions. At the same time, regular coaching brings performance issues to an employee's attention when they are minor, and assists the employee to correct them.

The goal of performance coaching is not to make the employee feel badly, nor to show how much the HR professional or supervisor knows. The goal of coaching is to work with the employee to solve performance problems and improve the work of the employee, the team, and the department.

Employees who respond positively to coaching and improve their performance can become valued contributors to the success of the business.

Employees who fail to improve will find themselves placed on a formal performance improvement plan, known as a PIP.

Employees who fail to improve when on the PIP are likely to find their employment terminated.

Second Example of Performance Coaching

In a second example of the use of performance coaching, managers can use performance coaching to help employees who are effective contributors improve and become even more effective contributors. Done well, coaching can help any employee continuously improve their skills, experience, and ability to contribute.

In my experience, the time managers spend in performance coaching with their best, most contributing employees, is time well spent. It is more likely to produce increasing results for the organization.

It is ironic that many managers find that they spend the majority of their time with their troubled, or under performing employees, when the most significant value of their time and energy investment comes from the opposite priority.

It is an effective tool for managers to deploy in their efforts to help employees succeed, and especially, help employees increase their skills and their potential opportunities for promotion or lateral moves to more interesting positions.