I have an employee who is disengaged. He joined the organization four months ago and has yet to complete a project. He does not interact with the team, doesn't ask questions and, it seems, doesn't work too hard. It's frustrating for the entire team, and it's an important role that is critical to our business. So what is my next step with this employee? A performance improvement plan (PIP).

In this issue of Promotional Consultant Today, learn how to develop a performance improvement plan and utilize this tool to help employees get back on track or determine if the employee is not the right fit for your team.

In her article, "How to Create an Employee Performance Improvement Plan," author Nicole Fallon Taylor describes a good PIP as one that includes these four elements:

1. The performance deficiencies. If you've reached a point where you feel a PIP is necessary, it's likely that you've already given plenty of informal feedback to your employee about what he or she is doing wrong. It's important that this feedback is documented and that the employee has been given ample time to improve, according to Taylor. You may also consider getting objective feedback from other managers and leaders on the effectiveness and engagement of this employee.

According to Taylor's article, PIPs should never be used to address behavioral issues like poor attendance or inappropriate communications. Only document issues related to skills or knowledge the employee is lacking, or specific job functions he or she is not completing properly on a regular basis. Only state the facts of what the employee has not delivered, such as "Reports are due at 10 am on Monday and on X date, you did not submit a report."

2. Measurable improvement expectations. Once you've stated the employee's performance problems, you should work with the employee to develop a plan of action that encompasses training (if necessary) and clear benchmarks to meet. Decide what tasks should be accomplished and how to best measure them. Be sure to create the plan with the employee. This creates a sense of commitment on the employee's part. Also identify any internal resources available to assist the employee in meeting his or her performance goals (training programs, mentoring, etc.).

3. A reasonable, appropriate time frame for the employee to improve his or her performance. Most PIPs are measured in increments between 30 and 90 days, according to Taylor's article. The appropriate time frame to make the agreed-upon improvements depends on the employee's job duties and the nature of your business. Be fair and reasonable in determining the timeframe; after all, the goal is to help the employee to improve his or her behavior. Also, agree to specific times to check in on the employee's progress before the completion date. And most important, as a manager, stick to your end of the plan. Make it a priority to touch base with the employee and provide any resources needed.

4. Detailed consequences of continued underperformance. In this section of the PIP, clearly communicate the consequences of what will happen if expectations are not met. Will the employee be demoted? Temporarily suspended? Terminated?

Communicate to your employee that the goal is to invest this time and resources so he or she can be successful. This is the goal. However, he or she needs to be clear about the consequences if improvement does not happen.

As Taylor says, it's critical to document absolutely everything, every step of the way, and get the employee to sign off on the plan in case the end result is termination. Also, check with your human resources department to ensure that the PIP meets company policy.

Source: Nicole Fallon Taylor is the managing editor of Business News Daily, a resource for small businesses, entrepreneurs and job seekers. She started freelancing for BND during her time at New York University but took a break from business journalism when she graduated and spent a year managing a food and cooking website. She has been on staff full time at BND since July 2013.