A performance improvement plan (PIP) is a written plan that names the specific performance gaps an employee must close, the support they will get and the date by which progress will be reviewed. Done well, a performance improvement plan gives a struggling employee a fair, clear path back to good standing. Done poorly, it reads as paperwork for a decision already made. This guide explains when to use a performance improvement plan, what to include, a simple template and how to run the process fairly.
What Is a Performance Improvement Plan?
A performance improvement plan turns vague concerns into measurable goals. It usually covers a set period of several weeks to a few months and includes regular check-ins between the employee and their manager.
A PIP is a management tool, not a legal requirement for private employers. Still, it helps in three ways. First, it makes expectations clear. Second, it shows the employee what support is available. Third, it creates a consistent record if the outcome later needs explaining.
Federal agencies use a similar step for poor performance, and the U.S. Office of Personnel Management’s performance management guidance is a useful reference on setting clear standards and giving feedback.
When to Use a Performance Improvement Plan
Use a PIP when an employee is not meeting clear, documented expectations and informal coaching has not worked. For example, a sales rep who misses agreed targets for several months, or an analyst whose reports often contain errors, may be a good candidate.
A performance improvement plan is usually not the right tool when:
- The problem is serious misconduct, such as harassment or theft, which calls for your conduct policy instead.
- The employee never received clear expectations or training in the first place.
- The manager has already decided to end employment and wants a paper trail.
- The performance drop may relate to a medical condition, leave or another protected situation that needs a separate conversation.
Before you start, check that earlier feedback exists. Regular check-ins, such as a 90-day review for new hires, make a later PIP much fairer.
What to Include in a Performance Improvement Plan
Every performance improvement plan should answer six questions:
- **What is the gap?** Describe the specific performance problem with concrete examples and dates.
- **What does success look like?** Set measurable goals tied to the job’s normal standards.
- **What support will the company provide?** List training, coaching, tools or more frequent feedback.
- **When will progress be reviewed?** Schedule check-ins, such as weekly or every two weeks.
- **How long does the plan run?** State the start date and end date.
- **What happens next?** Explain the possible outcomes, including successful completion, an extension or further action.
Keep the language factual and neutral. In other words, describe what happened and what needs to change, not the employee’s personality.
Performance Improvement Plan Template
Use this simple performance improvement plan template as a starting point, then adapt it to the role.
| Section | What to write | Example |
|---|---|---|
| Employee and role | Name, job title, manager, plan dates | Analyst, reports to finance manager |
| Performance gap | Specific issue with examples | Monthly reports submitted late on three occasions |
| Expected standard | The normal expectation for the role | Reports submitted by the fifth business day |
| Measurable goals | What the employee must achieve by the end date | All reports on time during the plan period |
| Support provided | Training, tools, coaching, check-ins | Weekly check-in, reporting tool training |
| Check-in schedule | Dates of progress reviews | Every Friday |
| Possible outcomes | What happens if goals are met or not met | Plan closed, extended or further action |
| Signatures | Employee and manager acknowledgment | Signature confirms receipt, not agreement |
How to Deliver a Performance Improvement Plan
The meeting matters as much as the document. So prepare carefully.
- Hold the conversation in private, with HR present if your policy calls for it.
- Explain that the goal is improvement, then walk through each section.
- Invite the employee to share obstacles, because they may reveal fixable issues such as unclear priorities or missing tools.
- Agree on the first check-in date before the meeting ends.
- Give the employee a copy of the plan.
After the meeting, keep every check-in on the calendar. Missed check-ins send the message that the plan is a formality.
Keep the Process Fair and Lawful
A performance improvement plan should follow the same standards you apply to other employees in similar roles. Otherwise, it can look like unequal treatment.
Watch for timing, too. The EEOC explains that employers may not retaliate against employees for asserting their rights, such as filing a discrimination complaint or requesting an accommodation. So if an employee has just raised a concern, review the plan with HR before you deliver it.
Likewise, if an employee mentions a health condition affecting their work, the EEOC’s guidance on disability discrimination and employment decisions explains that employers may need to discuss a reasonable accommodation. Our HR compliance checklist covers related policies to keep current.
Common Performance Improvement Plan Mistakes
Even a well-written plan can fail if the process around it is weak. Avoid these common mistakes:
- **Vague goals.** “Improve communication” is hard to measure. Instead, write “reply to client emails within one business day.”
- **Too little time.** A plan that ends before results can show up feels like a setup.
- **No real support.** Promised training or coaching that never happens undermines the whole plan.
- **Inconsistent use.** Placing one employee on a PIP while others with the same gaps get informal coaching invites claims of unfair treatment.
- **Surprises.** If the employee hears about the problem for the first time in the PIP meeting, earlier feedback was missing.
Finally, keep notes from every check-in, because a performance improvement plan is only as strong as the record behind it.
What Happens at the End of a PIP?
At the final review, compare results with the goals in the plan. Then choose one of three outcomes:
- **Successful completion:** close the plan, recognize the progress and return to normal check-ins.
- **Extension:** extend the plan for a short, defined time when the employee has made real but incomplete progress.
- **Further action:** if goals are not met, follow your policy, which may include reassignment or ending employment.
Either way, document the outcome. If someone leaves, an exit interview can still reveal whether hiring or onboarding gaps played a part.
Performance Improvement Plan FAQ
Does a PIP lead to termination?
Not always. Many employees complete a performance improvement plan successfully, especially when goals are clear and support is real. However, a PIP does signal that the job is at risk if performance does not improve.
How long should a performance improvement plan last?
There is no legal standard length, and most plans run from several weeks to a few months. Choose a length that gives the employee a fair chance to show improvement, based on how often the work produces measurable results.
Can an employee refuse to sign a PIP?
An employee can decline to sign. In that case, note the refusal and explain that the signature only confirms they received the plan, not that they agree with it.
How serious is being put on a PIP?
It is serious, because it formally documents that performance falls short of the job’s standards. Still, it is also an opportunity to get clear feedback and support to improve.
Build a Stronger Team With Bridgecore Partner
When a role keeps falling short, the issue may be the hire, not the plan. Bridgecore Partner’s workforce and hiring services can help you find people who match the job from day one. Contact Bridgecore Partner to talk through your hiring needs.
This article is general information, not legal or tax advice. Check with a qualified professional for your situation.