Performance Watch
Definition
Count of employees currently on a formal Performance Improvement Plan (PIP) or equivalent performance-bar process. Leading indicator for `hr.terminations` — most PIPs that do not resolve with measurable improvement convert to involuntary exits within one quarter. Common pitfall: confusing PIPs with informal coaching — only employees on a written, time-bound plan with defined exit criteria should be counted here. Informal "we need to talk" relationships belong in the at-risk count, not this number.
Why it matters
Leading indicator for `hr.terminations` and a read on management discipline — managers who avoid PIPs accumulate B-players, managers who over-use them are training-out coachable performers. The trend matters more than the snapshot.
How it's calculated
Count of active employees on a written, time-bound Performance Improvement Plan with explicit success criteria and an end date (typically 30/60/90 days). Excludes informal coaching relationships and probationary new hires unless the new-hire is on a formal extension PIP. How to interpret it
A sustained PIP count of ~1–3% of headcount typically reflects healthy performance management; near-zero suggests management avoidance; >5% sustained suggests either hiring-quality issues or unrealistic performance bars (industry folk-wisdom, not citation-grade). PIP-to-termination conversion rate (tracked privately) usually settles in the 60–80% range when the program is well-run.
Source
imboard Editorial
Stage relevance
Typically owned by
Related KPIs
Count of company-initiated employee separations during the period — performance-management exits, layoffs, redundancies, and for-cause terminations. The numerator of `hr.involuntary_turnover_rate` and the inverse of `hr.voluntary_exits` on the attrition page. Common pitfall: bundling layoff events (often one-time, board-known) with normal performance-management churn (steady-state, manager-driven). Best practice is to break out layoffs in `hr.talent_challenges` narrative and reserve this number for the recurring stream.
Annualized rate of company-initiated separations as a percentage of average headcount. Complement to `hr.voluntary_turnover_rate`; together they form the total turnover picture per the Mercer US Turnover Survey methodology. Common pitfall: lumping one-time RIFs into the steady-state rate, which makes the trend unreadable. Best practice is to report steady-state involuntary turnover and call out any RIF events separately in `hr.board_actions` with the headcount delta.
Count of employees actively flagged as flight risk by managers, based on engagement signals (skip-level surveys, manager 1:1s, counter-offer activity, tenure-curve risk). A leading indicator that complements the lagging `hr.voluntary_exits` number. Common pitfall: stale flags that never get cleared — at-risk lists tend to drift toward "every senior IC ever" without manager discipline. Best practice is a quarterly refresh with explicit add/remove notes and an action attached to each flag.
Narrative on key hiring difficulties, attrition concerns, comp-market pressure, and market-driven talent risks that the board should weigh in on or be aware of. The "watch this" companion to `hr.talent_highlights`. Common pitfall: sanitizing this section to avoid uncomfortable conversations — but talent challenges are precisely where boards add the most value (warm intros, comp benchmarking, executive search). Best practice is to name the specific role, team, or risk and the ask explicitly.
Track these KPIs with your board
I'mBoard helps startup CEOs report the metrics that matter, track resolutions, and run better board meetings.