Performance Improvement Plan (PIP): Definition and Examples

So, your manager just said you’re going on a PIP and suddenly, the room gets cold. Before you dive into it, the Performance Improvement Plan is misunderstood as the beginning of the end, but it doesn’t have to be.  

Instantly, your mind races - “Am I about to be fired?” But wait, before panic sets in, let’s reframe the story. A PIP isn’t just a warning shot; it’s also a second chance. In this blog, we’ll explore what a PIP really means, why it’s implemented, and how you can turn it from a setback into a comeback. 
 

Table of Contents  

1. What is a Performance Improvement Plan? 

2. Do Performance Improvement Plans Actually Work? 

3. How to Write a Performance Improvement Plan? 

4. Benefits of Performance Improvement Plan 

5. Examples of Performance Improvement Plan  

6. Best Practices for Performance Improvement Plans 

7. Conclusion 
    

What is a Performance Improvement Plan? 

A Performance Improvement Plan (PIP) is a formal, structured document designed to help employees who are not meeting job expectations improve their performance. Rather than rushing into disciplinary action or termination, a PIP offers a second chance by outlining specific performance issues, measurable goals, support resources, and a clear timeline for improvement. 

Keys Focus Areas:  

1. A PIP is usually initiated by a manager or HR 

2. It acts as both a guidance tool and an accountability framework 

3. Identifies performance gaps in areas like productivity and communication 

4. Clearly defines what success looks like to improve customer satisfaction 

5. Emphasises collaboration over punishment 

6. Includes regular check-ins, training, and mentoring support 

7. Success leads to role continuation; failure may lead to further action 

8. Promotes talent retention and performance improvement 

Do Performance Improvement Plans Actually Work? 

Yes, Performance Improvement Plans (PIPs) can be highly effective, but their success depends on how they’re implemented and the intent behind them. When approached with genuine support and clear communication, PIPs offer struggling employees a structured opportunity to turn things around. 

They provide clarity on expectations, specific goals, timelines, and the resources needed to improve. Many employees respond positively to this structure, especially when they feel their manager is invested in their growth. 

However, PIPs are often misunderstood or misused. In some cases, they’re implemented as a formality before termination, which undermines their value. If employees view a PIP as a ‘last warning’, they may feel demoralised or disengaged rather than motivated. 

1. For a PIP to truly work, it must be: 

2. Constructive, not punitive 

3. Clear in its objectives 

4. Realistic in its expectations 

5. Supported by regular feedback and resources 

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How to Write a Performance Improvement Plan? 

A well-written PIP should be clear, constructive, and focused on helping the employee succeed. Below is a step-by-step breakdown to guide you in creating a thoughtful and effective Performance Improvement Plan. 

Define Acceptable Performance 

Start by clarifying what “success” looks like in the employee role. This means outlining the key responsibilities and performance standards expected of them. 

1. Clearly state what good performance looks like 

2. Use role-specific standards and examples 

3. Avoid vague terms, and be precise and objective 

Example: Instead of saying, “Communicate better with clients,” specify, “Respond to client emails within 24 hours with a professional and helpful tone.” 

Create Measurable Objectives 

Set realistic, measurable goals that align with the identified performance gaps. These objectives should be time-bound and clearly trackable so both the manager and the employee can monitor progress. 

1. Set Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals 

2. Focus on outcomes that can be tracked and evaluated 

Example: “Complete all assigned projects by the stated deadlines for the next 60 days,” or “Reduce customer complaint rate from 10% to 3% within one month.” 

Outline Resources and Support 

Improvement isn't just about pointing out what's wrong, it's about helping the employee get better. This shows your Time allocated for skill development.  

1. Lists available support like training, mentoring, or tools 

2. Show commitment to employee development 

3. Ensure they know help is available, not just expectations 

Example: “To help improve your task management, you’ll receive one-on-one coaching, access to Asana training, and weekly support check-ins with your team lead.” 

Schedule Check-ins 

Consistency is key to the success of a PIP. Regular check is to review progress, provide feedback, and adjust goals if necessary. These check-ins also offer a chance for the employee to voice any challenges or ask questions. 

1. Plan regular meetings weekly or bi-weekly 

2. Review progress and provide feedback 

3. Adjust if needed and document each session 

Example: “Holding 30-minute check-in meetings every Friday for the next four weeks to review your progress, address any concerns, and adjust if needed. 

State the Consequences 

End the PIP by clearly outlining what will happen if the employee doesn’t meet the set expectations by the end of the plan. Be firm but fair. This isn’t meant to scare the employee; it’s about maintaining accountability. 

1. Clearly explain what happens if goals aren’t met 

2. Keep it professional, focus on accountability 

Example: “If the performance goals outlined in this plan are not met by the end of the 30-day period, it may result in further disciplinary action, up to and including termination of employment.” 

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Benefits of Performance Improvement Plan 

Here are some of the benefits of a Performance Improvement Plan:  

Culture of Accountability 

PIPs promote a workplace culture where expectations are clear and accountability is embraced. Employees understand their roles and are encouraged to take ownership of their performance. This fosters responsibility and raises the overall performance bar. 

Reduce Liability 

From a legal standpoint, a documented PIP demonstrates that the company took fair, consistent steps to address performance issues. If termination becomes necessary, it reduces the risk of wrongful dismissal claims by showing a transparent and structured process was followed. 

Improved Relationships 

Open and constructive dialogue during a PIP can enhance trust between managers and employees. It shifts the narrative from conflict to collaboration, helping to rebuild strained relationships and create a more communicative work environment. 

Improves the Employee Experience 

When employees are supported instead of immediately penalised, it signals that their development matters. This not only boosts morale but also helps employees feel valued and understood, improving their day-to-day experience at work.   

Save Time and Money 

Replacing an employee can be costly and time-consuming. A PIP provides a more efficient alternative by helping existing team members improve. This process also succeeds in their roles, saving on recruitment, onboarding, and training expenses. 

More skilled employees 

Employees going through a PIP often gain new skills through targeted training and coaching with extra care. Even if they don’t meet every objective, they usually emerge more capable, self-aware, and better equipped to handle future responsibilities. 

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Boosts Employee Retention 

Employees who feel supported during tough times are more likely to stay loyal to the organisation.  

A thoughtful PIP can prevent premature exits, reduce turnover, and foster a stronger, more stable workforce. 

Examples of Performance Improvement Plan 

Below are three common workplace scenarios where PIPs can be applied, along with sample goals and strategies. 

Addressing Attendance Issues 

Frequent absenteeism can disrupt team dynamics and workflow. In this case, the PIP focuses on improving attendance over a 30-day period by offering flexible scheduling and time management support.  

Weekly HR check-ins help the employee stay accountable while giving them space to discuss any underlying challenges. If improvement isn’t shown, further disciplinary action may be taken. The goal is to rebuild reliability in a supportive, non-punitive way. Here is a situation:  

Improving Deadline Management 

Missing deadlines consistently can slow down project delivery and impact the entire team. This PIP helps the employee improve time management by providing structured planning sessions, access to project management tools like Asana, and a clearer workflow.  

With bi-weekly check-ins, the manager can monitor progress and make real-time adjustments. If deadlines are still missed, a formal performance review or role reassessment may follow. Let’s look at a situation: 

Enhancing Customer Service Performance 

Poor customer service scores can damage a company’s reputation. In this scenario, the PIP aims to raise the employee’s performance through coaching, refresher training, and shadowing sessions with high-performing team members.  

Regular feedback reviews help pinpoint specific issues, such as tone or response time. Weekly check-ins ensure continuous guidance. If targets aren’t reached within the agreed timeframe, reassignment or escalation may be considered. Let's study a situation:  

Best Practices for Performance Improvement Plans 

A well-executed Performance Improvement Plan (PIP) is a roadmap to employee success. These best practices ensure the process is fair, constructive, and truly effective: 

Make a Plan 

Clearly define performance issues and desired outcomes. 

1. Use the SMART method: Specific, Measurable, Achievable, Relevant, Time-bound. 

2. Make sure improvement targets are directly tied to the employee’s role and responsibilities. 

3. Provide enough time for improvement while keeping urgency in mind (typically 30–90 days). 

4. Use written communication to avoid misunderstandings and ensure transparency. 

Tip: Draft the plan in collaboration with HR for structure and fairness. 

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Listen to Your Employee 

Allow the employees to share their perspectives and challenges. 

1. Show empathy and keep the discussion open and respectful. 

2. Use prompts like “What’s been difficult lately?” or “How can we support you better?” 

3. Performance issues may stem from personal, team, or systemic problems. 

4. Let the employee know their input will be treated with care and used constructively. 

Tip: Ask open-ended questions like “What do you think is holding you back?” 

Find the Root Cause of the Issue 

Don’t just address symptoms; understand what’s driving poor performance. 

1. Evaluate factors like unclear expectations, lack of skills, or workplace issues. 

2. Low performance causes a lack of recognition or misalignment with the role. 

3. Life events or health concerns may affect focus and productivity. 

4. Combine observation, metrics, and peer insights to get a complete picture. 

Tip: Use one-on-one meetings or assessments to dig deeper. 

Emphasise the Positive 

Highlight the employee’s strengths and potential. 

1. Position the PIP as a development opportunity, not a warning. 

2. Remind them of their value and previous successes in the role. 

3. Make it clear the aim is to help them thrive within the organisation. 

4. Discuss how this improvement could open doors for future opportunities. 

Tip: Use encouraging language like “We believe in your ability to improve.” 

Provide Guidance 

Ensure the employee has access to everything needed to succeed, software, courses, job aids, etc.  

1. Offer tools, training, and regular support. 

2. Be actively involved in their progress, not just the evaluator. 

3. Suggest workshops, e-learning modules, or webinars to bridge skill gaps. 

4. Create a safe space for employees to ask for help when needed. 

5. As confidence builds, tailor guidance to match evolving needs. 

Tip: Assign a mentor or schedule weekly coaching sessions. 

Check-in Regularly 

Schedule consistent progress reviews (weekly or bi-weekly). 

1. Use check-ins to give feedback, resolve issues, and adjust goals. 

2. Keep written records to ensure clarity and reference. 

3. Celebrate small wins and realign if performance veers off track. 

4. Adapt timelines or tasks based on what is realistic and reasonable. 

Tip: Keep a written summary of each meeting for transparency. 

Conclusion 

A Performance Improvement Plan is about helping someone get back on track. With clear goals, honest conversations, and the right support, employees can improve and feel more confident in their roles. For managers, it's a chance to guide rather than punish. When handled with care, a PIP can turn a tough situation into a win for both the employee and the team. 

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