No one likes to hear that their work isn’t meeting expectations. It’s uncomfortable and stressful, and it feels like a firing warning. But a Performance Improvement Plan (PIP) isn’t just about telling you what’s not working – it’s a structured opportunity for you to get back on track and enhance your employee performance.
Companies use PIPs as part of their performance improvement process to help employees succeed rather than fire them. When done right, a PIP provides a clear roadmap for improvement with specific steps, expectations, and timelines. It’s meant to bridge the gap between your current performance and what’s needed for success in your role.
A PIP isn’t about punishment—it’s about support. Employers don’t want to lose good team members if they can help them improve. Instead, it’s a structured conversation between employer and employee where both parties know the challenges and work towards realistic solutions. Managers use these in a fast-paced work environment to clarify performance expectations.
If you’re struggling with deadlines, sales targets, or new responsibilities, a Performance Improvement Plan lays out clear expectations and gives you a fair opportunity to improve. It may feel overwhelming initially, but it’s also a chance to show your skills, get the support you need, and prove your commitment to the job. When handled correctly, a PIP can help you turn things around and move forward in your career.
Although a PIP can seem terrifying, it’s also an opportunity to prove yourself, get extra help, and show you’re committed to the role. It can be a career-saver, not a career-ender, when done right.
1. Performance improvement plan definition
A Performance Improvement Plan is a written plan that explains what needs to be improved, what is expected of you, and how long you have to make those changes. Simply put, it’s a clear, step-by-step guide designed to help you improve your work in a fair and structured way.
Unlike casual feedback or an informal chat with your manager, a PIP is more structured—it includes written goals, deadlines, and checkpoints to track progress.
For example, if you struggle to meet deadlines, a PIP might set specific goals like reducing project turnaround times by 20% in the next three months. If you’re not hitting sales quotas, the plan might include extra training, weekly check-ins, and specific sales targets to hit.
A well-designed PIP will include:
- A clear description of the performance issues.
- Specific, measurable goals you need to meet.
- A timeline for improvement (30, 60, or 90 days).
- Regular check-ins.
- A plan for additional support like training or mentorship.
- The employee’s job description sets clear expectations.
Incorporating the employee's input during the PIP process is crucial as it fosters a positive environment and leads to more effective planning.
It’s not meant to feel like a disciplinary action but a structured opportunity for the employee to succeed. Managers have a big role in ensuring the PIP is realistic, fair, and supportive. Employees need to engage fully and make an effort to improve.
A PIP isn’t an automatic termination process—many employees complete their plans and thrive in their roles. But it’s also a way for companies to document performance concerns and take action if improvements aren’t made.
Suppose an employee’s performance doesn’t improve after the plan. The company may need to explore other options, including reassignment or, in some cases, termination.
A Performance Improvement Plan is about fairness, clarity, and giving employees a real chance to succeed. It benefits employees and employers, resulting in bigger teams, better productivity, and a healthier work environment.
2. When to use a PIP
A Performance Improvement Plan isn’t something companies slap on employees for minor mistakes. It’s used when an underperforming employee has ongoing performance issues that need structured support and clear expectations to improve the employee's performance. The goal isn’t to punish employees but to give them a fair chance to improve while ensuring clear expectations.
Here are some common situations when a PIP makes sense:
- Consistent Low Performance Over Time. A PIP can formalize the support process if an employee has struggled for months and feedback hasn’t helped. It outlines where improvement is needed and sets clear, specific, measurable goals to track progress.
- Not Meeting KPIs or Goals KPIs exist for a reason—they show if an employee is meeting expectations. If an employee misses their targets after previous discussions, a PIP provides a structured way to address the issue and get them back on track.
- Repeated Mistakes or Poor Quality Work. Everyone makes mistakes, but if an employee’s performance is below standard even after feedback and training, it may be a deeper issue that a PIP can help fix.
- Struggling in a New Role or Responsibilities Sometimes. An employee is promoted or given new tasks but can’t adjust. Instead of assuming they’re not a good fit, a PIP can provide extra support, training, and a clear roadmap to success.
- Frequently Missed Deadlines. A PIP can set specific and measurable time management and accountability goals if an employee regularly misses deadlines and impacts the team.
- Communication or Collaboration Issues. If an employee struggles to communicate with colleagues or team members, a PIP can outline what needs to change and how progress will be measured.
A PIP is most effective as a support tool, not a warning sign for termination. When done right, it gives employees a fair chance to improve while keeping everything transparent for both parties.
3. PIP scenarios
Let's examine a few real-life scenarios where a performance improvement strategy could be applied to see how it works in practice.
Sales reps not meeting targets
Situation: John has not met his monthly targets for the past four months, and his numbers are 30% off.
PIP Approach: His manager sets specific and measurable goals, such as increasing his closed deals by 10% per month for the next 3 months.
These goals are designed to address deficiencies in the employee's performance. He has to attend additional sales training and have weekly check-ins to discuss his strategy and challenges.
Expected Outcome: With support, John will improve his approach and meet his new goals and long-term performance.
Software developer writing poor code
Situation: Lisa has been submitting code with errors, causing delays for the whole team. The QA team has flagged her multiple times.
PIP Approach: In the next two months, Lisa plans to attend coding workshops, have her work reviewed by a senior developer, and reduce errors by at least 50%. Providing proper tools and resources is crucial for Lisa to improve her coding skills.
Expected Outcome: With focused mentorship and attention to detail, Lisa will improve her work and gain confidence in her skills.
Customer support rep getting negative feedback
Situation: Mike has received multiple customer complaints about his tone and response time. His performance is affecting customer satisfaction ratings.
PIP Approach: His plan is customer service training, setting response time targets, and weekly performance evaluations. He wants to improve customer feedback ratings from 3.5 to 4.5 stars in 60 days.
Expected Outcome: Mike will learn better communication strategies and provide a better customer experience, ultimately customer retention.
The marketing coordinator is missing deadlines
Situation: Sarah misses campaign launch deadlines and delays the whole team.
PIP Approach: Sarah’s PIP has specific and measurable milestones, such as completing 90% of tasks on time for the next 3 months and using project management tools to track her progress.
Expected Outcome: With structured support and better time management, Sarah will improve her efficiency and meet deadlines.
4. Purpose and benefits
A Performance Improvement Plan isn’t just a formality—it’s a tool that helps employees and managers work together to improve performance. It provides structure, clarity, and an opportunity to improve rather than making employees feel like they’re about to lose their jobs.
At its core, a PIP serves two main purposes:
- To help employees succeed by identifying areas for improvement and a clear path forward.
- To provide a fair and transparent process for tracking employees’ progress, so expectations are clear and measurable.
When done correctly, a PIP can help struggling employees by outlining specific and measurable milestones that help them improve their performance in a realistic timeframe.
Benefits for employees:
- Clarity and Direction: A PIP outlines exactly what’s expected and how an employee needs to improve, so there is no confusion about what needs to be done.
- Support and Guidance: Employees get direct feedback, additional training, or mentoring to help them succeed.
- A Second Chance: Instead of being fired for poor performance, employees can fix issues and show progress.
- Career Growth: Completing a PIP can strengthen an employee’s skills and confidence and improve their performance in the long run.
- Tracking Progress: Regular check-ins and feedback help track progress and ensure they are on the right path.
Monitoring the employees' progress during the PIP is crucial to keeping them motivated and ensuring they meet their goals.
Benefits for employers:
- Improved Performance: A well-structured performance efficiency enhancement often leads to noticeable improvements for both the employee and the company.
- Better Communication: PIPs create structured conversations between managers and employees so both are aligned on expectations.
- Fair and Documented Process: If an employee continues to underperform despite supporting the PIP documents, the company should have given them a fair chance before taking further action.
- Stronger Team Efficiency: When employees improve, the team benefits from increased productivity and smoother workflows.
A PIP isn’t about punishment—it’s about opportunity. In the best-case scenario, the employee meets their goals and becomes a stronger contributor to the team.
5. Roles and responsibilities
A performance improvement plan involves more than just the employee—it’s a team effort. Several people play key roles in making the process fair, supportive, and effective.
The Employee
The employees' current performance is what’s being addressed, so they play the most critical role in the process. Their responsibilities are:
- Acknowledge the PIP and understand the areas in which they need to improve.
- Work towards the goals in the plan.
- Ask for help or clarification when needed.* Their progress and be proactive in making changes.
Success in a PIP mostly depends on the employee meeting specific and measurable objectives and showing visible improvements.
The Manager
A manager guides the employee through the performance efficiency enhancement. Their responsibilities are:
- Clearly outline the performance issues and set realistic goals.
- Provide necessary resources, support, or training to help the employee advance.
- Regular check-ins to discuss the worker’s progress and adjust the plan if needed.
- Give constructive feedback while keeping the process fair and transparent.
- Document progress during the PIP execution to ensure transparency and accountability.
A good manager views a PIP as an opportunity to help an employee grow rather than just a way to fire someone.
The HR Department
HR is responsible for ensuring PIPs are fair, compliant, and documented. Their responsibilities are:
- Ensure PIPs are implemented consistently across the company.
- Guide the manager and employee through the process.
- Mediate if misunderstandings arise.
- Keep records of the PIP for future reference.
HR also ensures that the performance growth strategy is conducted professionally and that the employee has a fair chance to improve.
6. Steps to implement a PIP
A Performance Improvement Plan is not about punishment—it’s a clear and fair way to help employees improve. The process should focus on fixing performance shortcomings while giving the employees the support they need. Here’s how to do it in three simple steps:
Identify performance deficiencies
Before creating a performance improvement plan, managers must understand the exact problems with the employee’s performance. Is the employee missing deadlines? Struggling with sales? Having trouble with teamwork? The more specific the issue, the easier it is to fix. A vague plan won’t help—precise details make all the difference.
Set clear goals and expectations
After identifying the problem, the next step is setting specific and measurable objectives. For example, if an employee’s sales numbers are too low, the goal might be to increase sales by 20% in 60 days.
If deadlines are an issue, they may need to complete 90% of the tasks on time over the next three months. A well-structured PIP process ensures that the manager and the employee know exactly what success looks like.
Develop a customized plan
Every performance improvement plan should be designed to fit the employee’s needs. This might include extra training, mentoring, or hands-on coaching.
If an employee struggles with technical skills, a training session can help. If teamwork is a problem, regular check-ins might be the solution. Giving the right tools and support increases the chances of an employee’s performance improving and prevents future performance deficiencies.
A PIP is a second chance. When done correctly, it helps employees succeed while meeting company expectations.
7. Tips for an effective PIP
A Performance Improvement Plan should be a tool for growth, not a punishment. It helps employees understand expectations, improve their skills, and get back on track.
Many companies use performance management software to track employee progress and ensure the structure and effectiveness of their Performance Improvement Plans (PIPs) is structured and effective. Here are some key tips to make an improvement plan successful:
Set realistic goals
A performance improvement plan should set challenging but achievable goals. If expectations are unrealistic, the employee’s performance won’t improve—it will only lead to frustration. Ensure goals are within reach based on the employee’s role and workload.
A personal development plan can be integrated into a PIP to help employees gain new skills and advance in their careers.
Use data-driven metrics and measurable objectives
Every goal in the improvement plan should be specific and measurable. Instead of saying, "Improve sales," set a target like "Increase sales by 15% in the next two months."
A good performance review software helps managers document feedback, set measurable goals, and monitor improvements throughout the PIP process, ensuring that progress is tracked objectively.
Communicate clearly
Transparency is key. Clearly explain performance deficiencies, expectations, and consequences if improvements aren’t made. Everything should be documented so there’s no confusion about what success looks like.
Regular employee check-ins are essential during a PIP as they provide opportunities to discuss progress, challenges, and any additional support needed.
Stay supportive, not punitive
A PIP shouldn’t feel like a warning letter—it should be a structured way to help an employee grow. Managers should provide guidance, training, or mentorship rather than just pointing out problems.
Integrating people development software into a performance improvement plan allows businesses to provide employees with training, mentorship, and skill-building resources.
Encourage employee participation
A performance improvement plan works best when employees have a say in it. Let them discuss concerns, suggest solutions, and take ownership of their progress.
While a PIP focuses on improving an employee’s current performance, it can also align with personal development goals for work examples, helping them grow beyond their immediate role.
Review and adjust if necessary
Not every employee improves at the same pace. Adjust the improvement plan if someone is making an effort but needs more time or different support. The goal is progress, not perfection. Employees in leadership roles can use a personal leadership development plan within their PIP to refine decision-making, communication, and team management skills.
A PIP isn’t just about fixing problems—it can also support leadership development goals, helping employees prepare for future leadership roles.
A well-executed PIP can turn performance issues into opportunities for growth, helping both the employee and the company move forward.
Conclusion
A Performance Improvement Plan (PIP) isn’t just about fixing problems—it’s about giving employees a real chance to succeed. When done right, it provides clear expectations, support, and measurable goals to help improve an employee’s performance in a structured way. Instead of being a warning, a PIP should be seen as an opportunity for growth, skill building, and long-term success.
Both employees and managers can benefit from the process by setting realistic goals, openly communicating, and providing the right resources. In the end, a well-done PIP strengthens teams and increases productivity, creating a healthier workplace where employees feel valued and supported.
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