PIPs, or performance improvement plans, are often considered the kiss of death for the employees who receive them. Rather than supporting improvement, they often serve as a countdown to termination.
But not all PIPs are created equal and they don’t always signal a layoff. When framed correctly, they can be a force for positive change.
In this guide, we’ll teach you how to create an improvement plan that helps employees succeed, instead of scaring them straight.
What is a PIP in HR?
A performance improvement plan, or PIP, is a document detailing areas where an employee is struggling to perform and the specific steps they need to take to improve. A PIP form may include a list of improvements for the employee and a timeline for when they need to be made in order to avoid termination.
When to use a PIP for employees
Dealing with an underperforming employee is no one’s idea of a good time. If you’ve already tried providing feedback during your weekly check-ins and it still isn’t getting better, it may be time for a performance improvement plan.
But remember, no one likes to be blindsided. A PIP should NEVER be the first time the employee is hearing that their performance needs improvement.
You may want to consider introducing a PIP when an employee is:
- Struggling to meet sales or performance goals
- Turning in low-quality work
- Frequently missing deadlines
- Receiving negative feedback from clients, customers, or colleagues
- Frequently arriving late or missing work
In the age of quiet quitting, you’ll also want to make sure the employee is actually interested in improving. If they seem completely checked out, not even a PIP will change their mind – or habits.
Do not use a PIP for issues like:
- Insubordination
- Inappropriate behavior
- Harassment
These more serious behaviors typically call for disciplinary action or sending an official employee termination letter.
Pros and cons of a typical PIP process
According to a Gallup study, companies that implement employee PIPs effectively can see a 30% increase in employee engagement and a 20% uplift in productivity.
But according to experts, instead of helping the employee improve, the majority of PIPs fall flat because they fail to address broader institutional issues. Here’s an overview of both the benefits and drawbacks of a standard PIP process.
How to write a PIP (+ sample text)
A poorly executed PIP can backfire. For disillusioned team members, these "Paid Interviewing Periods" allow them to funnel all their energy into finding a new role.
As managers and HR professionals, it’s time to do better. If you’re ready to shore up poor performance, minus the demotion threats and scare tactics, the following strategies can help.
1. Compare performance with job requirements
A PIP should be an objective measure of performance. Before you consider implementing one, you need a clear rationale and hard data to back it up.
“I actually survived a PIP that was unwarranted using the above strategies ‘show me concrete proof’ and they weren’t able to. Within a couple months the manager was let go because of not doing their job,” one Reddit user shares.
Don’t just focus on the employee’s latest performance evaluation. Take a long, hard look at their training history and onboarding experience. In many cases, there may be an underlying skills or training gap behind the issue.
Do:
- Review the employee’s job description, specific goals, metrics and targets
- Review recent performance review(s)
- Collect evidence of performance issues, including previous warnings, past performance reviews, recorded absences, poor quality work, records of client complaints, etc.
- Check with their manager(s) and look for gaps in training or support
Don’t:
- Assume all issues are the employee’s fault or that they want to do a bad job
- Move forward with the PIP if you discover a significant gap in training or support (in that case, start with retraining)
- Forget to consider accommodations for disabilities, mental health issues, family emergencies, and other personal barriers to performance
- Move forward with the PIP if their manager seems to actively want them gone
- Make it personal
Sample text for managers
Reason for PIP: [Employee's Name] has consistently failed to meet performance expectations in key areas, impacting team efficiency and overall productivity. Despite previous feedback and support, performance issues remain unresolved, necessitating a structured improvement plan.
💡Learn how clear expectations can help you attract candidates worth keeping. Refine your position requirements with these job requirement examples and best practices.
2. Get clear on what needs to happen
After you’ve identified the problem, help your team member get back on track with measurable goals.
“To me, PIPs help you to give an employee [a] very clear and direct way of putting them on a path back towards being a good worker,” one employer explained on Reddit. “For example, one employee showed up to work consistently late…We put him on a PIP. He recognized that his job was in jeopardy and changed his behavior. He's now been with my company for around 5 years.”
The secret sauce for this kind of win? Setting goals you can track.
Do:
- Create specific examples of performance goals to fill in the skills gap between performance and targets
- Make sure goals are time-bound (usually 30, 60, or 90-day timeframes)
- Ensure that the goals are realistic and achievable
- Decide how you’ll support the employee in achieving these goals
Don’t:
- Set vague goals like “be more punctual”
- Set unrealistic goals or goals that the employee would need more than the allotted timeframe to achieve
- Position goals around personality, like “be more outgoing”
- Set goals without clear support and action steps to back each one up
- Set too many goals (aim for 2-3 of the most important issues to keep the employee from feeling discouraged)
Sample text for managers
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3. Draft the PIP
After you’ve identified the core areas for improvement and progress milestones, it’s time to put it all together in an official PIP form.
A complete employee PIP should include:
- Employee’s name and title
- Specific performance issues
- Goals for improvement
- Measurable results
- Training and resources they will complete/use to improve
- Target dates for each goal
- Target dates to complete the entire PIP (30, 60, or 90 days)
When creating this document, consider it a first draft – not a final plan. Instead of trying to do it alone, ask your HR professionals and any relevant supervisors to review the plan. And don’t forget to include dates for regular check-ins with the employee. (More on this in step 6!)
PIP template for managers
This template can be customized to fit your organization's specific requirements and should be used in conjunction with any applicable HR policies and legal advice.
4. Listen to employee feedback
Once your PIP form is ready, it’s time to schedule a meeting with the employee and HR manager to discuss it.
Start with why you’re introducing the plan. Then, ask the employee for their feedback and any additional support or resources they might need. For both parties to proceed in good faith, the employee needs to know they have the tools they need.
Do:
- Give the employee at least 24 hours to review the PIP, make suggestions, request resources, etc.
- Remind the employee of their strengths and be clear that you want them to succeed
- Give the employee an opportunity to disprove any errors or inaccurate evidence
- Work with them to make adjustments where necessary
Don’t:
- Make assumptions
- Refuse to make adjustments where warranted
- Force them to sign immediately
- Listen to their comments at the PIP meeting and consider that enough “feedback”
Always let the employee know that they can take their time to review the PIP and that they have the right not to sign. If they ask to discuss the PIP with their legal counsel, give them time to do that.
⭐ Don’t wait until it’s too late to start asking the right questions. Grab these 25+ ready-to-use performance questions and start building a more effective employee check-in template.
5. Offer training and support
Never put someone on a PIP if you aren’t invested in their success. Instead, pair the PIP with additional training and coaching to show your employee you’re working with them, not against them.
“In my 40+ years in leadership/executive positions, I have never put anyone on a PIP that I wasn’t completely vested in helping them succeed,” one Reddit user notes. “Every PIP had measurable objectives, and I met with the employee on a weekly basis to discuss progress, remove obstacles for success, and work with them.”
Employers that take a ‘we’re all in this together’ approach often report that employees on a PIP successfully address their performance issues and go on to thrive in their careers. And when you improve your employee coaching and feedback systems, research shows that everyone wins.
One global Gallup study found that companies who offer training to engaged employees are 17% more productive and 21% more profitable.
Do:
- Solicit feedback throughout the process
- Address the root causes of the issue
- Make sure they have concrete resources (programs, manuals, etc.) and designated people they can turn to for help
Don’t:
- Expect them to do it alone
- Treat coaching as a one-time fix
- Focus only on shortcomings
If you’ve got an employee with great potential, don’t let them go. For example, if a neurodivergent employee does great work but struggles with deadlines due to time blindness, adjust your PIP to focus on time management tools and techniques tailored to their needs.
6. Schedule recurring check-ins
Once the PIP has been implemented, set up recurring one-on-one meetings with employees to help keep progress on track.
Make sure the employee knows exactly when they will happen and what to expect. During these meetings, structure your agenda to check in on goals, celebrate wins, and offer support where needed.
“When you initiate the conversation by asking employees to give you feedback, you open the door for more candidness and transparency. Feedback becomes a way of establishing trust and rapport, instead of perpetuating an unnecessary hierarchical disconnect…Be open not just to hearing their feedback, but really listening and acting on their comments and suggestions,” growth marketing specialist Missy Larkins tells Fast Company.
Do:
- Reward successes
- Make next steps clear
- Set clear consequences if objectives aren’t met
Don’t:
- Micromanage!
- Be critical
- Let go of an employee who’s recently been successful with a PIP
The best way to make sure you’re covering all bases? Keep asking for feedback.
When implementing a PIP, it’s important to let the employee self-motivate to do better – but you still need to be there to support and encourage them through the process.
PIPs for improvement, not punishment
A PIP shouldn’t just be a red-tape prereq to firing. With the right approach, PIPs can be a win for both employees and managers.
By creating a healthy feedback culture, offering support where needed, and treating employees like people instead of problems, you can create a PIP system that fosters growth – not fear.
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Top FAQs: Employee performance improvement plans
Tl;dr? Here’s a quick recap of some of the top questions about the employee performance improvement plans.
What’s the meaning of PIP in HR?
PIP stands for “Performance Improvement Plan.” This is a formal document that outlines the necessary steps an employee must take to improve their performance.
Does PIP mean termination?
Sometimes, but not always. Many managers use PIPs to cover their legal bases while preparing to fire an employee. But in healthy workplaces, a PIP is a final chance for employees to learn, improve and grow.
How serious is a PIP?
In a word: very. PIPs are distributed when ongoing feedback fails to improve job performance.
Should HR be present for PIP?
Yes. Human resources personnel should consult on drafting the PIP and be present when it is given to the employee.
What does a performance improvement plan usually include?
A complete PIP should include:
- Employee’s name and title
- Date
- Specific performance issues
- Goals for improvement, with measurable results
- Training and resources they will complete/use to improve
- Target dates for each goal
- Target date to complete the PIP
How can managers write an effective PIP?
Managers can write an effective PIP by including specific examples, consulting HR and/or legal counsel, and targeting performance concerns with actionable, time-bound goals.
