How to Write Performance Improvement Plans (With Examples)

Every workplace thrives on maintaining strong performance standards, but what happens when an employee starts to struggle? A Performance Improvement Plan (PIP) can be a helpful, structured way to address challenges, support growth, and guide employees back on track using effective performance management strategies.

Gallup’s research shows that highly engaged teams achieve up to 23% higher profitability and 14-18% greater productivity compared to less engaged teams. This article provides a comprehensive guide to writing and delivering performance improvement plan best practices including steps, examples, and tips for sensitive conversations.

What Is a Performance Improvement Plan?

A Performance Improvement Plan or a PIP plan is a formal document that identifies an employee’s performance deficiencies and outlines a plan for improvement.

Unlike a Performance Development Plan (PDP), which focuses on long-term career growth, a PIP targets immediate issues, such as poor work quality or behavioral concerns. It typically includes specific goals, a timeline, and resources to support the employee, often facilitated by performance review software. 

What is the Purpose of a Performance Improvement Plan?

PIP plans serve multiple purposes, balancing employee development with organizational needs:

• Clarifying Performance Expectations: PIPs clearly define what is required, reducing ambiguity about job standards.
• Providing a Structured Opportunity for Growth: By setting achievable goals and offering support, PIPs help employees improve their performance and leverage their employee strengths.
• Protecting Legal Liability and HR Documentation: A well-documented PIP demonstrates that the employer has taken reasonable steps to support the employee, which can be crucial in legal disputes, as noted by DavidsonMorris.

However, some critics, like Marc Randolph on Medium, argue that PIPs are often seen as a step toward termination, which can undermine their supportive intent.

When Should You Use a Performance Improvement Plan?

A Performance Improvement Plan (PIP) should be used when an employee consistently underperforms despite prior feedback and support, and there is a reasonable expectation that their performance can improve.

It is a structured tool designed to set clear, measurable goals and provide resources to help the employee meet company standards, rather than a disciplinary punishment.

Key scenarios for implementing a PIP include:

• When an employee’s performance repeatedly falls short of expectations, such as missing deadlines, poor quality of work, low productivity, or poor client feedback, and informal coaching has not resolved these issues.
• When a valued employee is underperforming in specific areas but has potential, for example, excelling in technical skills but struggling with soft skills like teamwork or communication.
• When an employee faces personal issues that temporarily affect their work, and a PIP can help identify root causes and support a return to normal performance levels.
• When an employee requires additional training or resources due to new tools, processes, or insufficient onboarding.
• After other interventions such as regular feedback and workload adjustments have been attempted without success.

A PIP is not appropriate when:

• The performance issue stems from serious misconduct (e.g., theft, violence, gross insubordination).
• The employee has a long history of poor performance without prior feedback or training, making immediate improvement unlikely.
• The employee’s skills are fundamentally misaligned with new job requirements due to organizational changes.
• The PIP is being used solely as a pretext for termination rather than genuine improvement efforts.

Quick Check: Is This a PIP Situation?

A simple rule of thumb:Use a PIP when the problem is performance-based, documented, and realistically fixable—not when it is behavioral misconduct, structural misalignment, or a communication failure.

How to Create a Performance Improvement Plan (Step-by-Step)

Creating an performance improvement plan form requires careful planning and clear communication. Here are some key steps:

Using goal-setting template can help ensure goals are SMART (Specific, Measurable, Achievable, Relevant, Time-bound).

Performance Improvement Plan Template Structure

A well-structured PIP ensures clarity and accountability. A typical template includes the following, and you can adapt formats like PDF performance review templates for this purpose:

If you're not sure how to deliver a performance improvement plan, we’ve got you covered. Download the Word, Excel, or PDF template below:

Or:

• Download Excel Template
• Download PDF Template

Common Pitfalls to Avoid When Writing a PIP

To make a PIP successful, steer clear of these common pitfalls:

Pitfall #1: Vague Objectives

One of the most common errors in crafting a PIP is failing to outline clear and measurable objectives. Without specific goals, employees may feel lost or unsure of what is expected of them. A vague objective, such as “improve communication,” leaves room for interpretation and does not set up the employee or the organization for success. Instead, use performance review comments to craft precise expectations.

Pitfall #2: Lack of Follow-Up

A well-written PIP is useless without regular follow-up. Managers who "set and forget" the PIP often fail to notice progress, address roadblocks, or provide the needed support to the employee. This can result in the employee feeling unsupported or unfairly assessed in the end. Regular check-ins, such as those outlined in a mid-year review guide, can prevent this.

Pitfall #3: Being Overly Punitive

A PIP should be designed to help an employee succeed, not to punish or intimidate them. Using overly harsh language or presenting the PIP as a warning of imminent termination can erode trust and morale. This approach often leads to disengagement rather than improvement. Instead, provide constructive feedback examples for your manager to model supportive communication.

Example: Employee Attendance Improvement Plan

How Teamflect Supports Performance Improvement Plans

A Performance Improvement Plan is only as effective as the system used to manage it. Without structure, visibility, and consistent follow-up, even the most well-written PIP can fall short. Teamflect helps HR leaders and managers turn PIPs into structured, trackable, and development-focused processes inside Microsoft Teams.

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1. Structured Goal Tracking

Teamflect allows managers to create clear, measurable goals directly within Microsoft Teams. Instead of vague objectives, each improvement area can be tied to specific KPIs, deadlines, and success criteria. Employees can see exactly what is expected of them, and managers can monitor progress in real time.

This transparency reduces confusion and keeps everyone aligned throughout the PIP timeline.

2. Regular Check-Ins & Documented Feedback

One of the biggest pitfalls of a PIP is lack of follow-up. Teamflect enables recurring one-on-one meetings, shared agendas, and documented feedback, all in one place. Managers can record progress updates, attach notes, and provide coaching consistently.

This creates a clear record of support and accountability, protecting both the employee and the organization.

3. Continuous Feedback & Recognition

Performance improvement should not focus only on what’s going wrong. Teamflect makes it easy to balance constructive feedback with recognition when progress is made. Acknowledging improvement reinforces positive behavior and keeps employees engaged during what can be a stressful process.

4. Clear Documentation for HR Compliance

PIPs often require proper documentation for legal and HR compliance purposes. Teamflect centralizes performance conversations, goal progress, and feedback history within Microsoft 365. This ensures that all steps of the improvement process are transparent, consistent, and properly recorded.

5. Integration with Performance Reviews

Performance Improvement Plans should not exist in isolation. Teamflect connects PIPs with performance reviews, goal-setting frameworks, and broader talent development processes. This ensures that improvement efforts align with long-term development rather than serving as a standalone corrective action.

FAQ: Performance Improvement Plans‍

Is a PIP a warning?

A Performance Improvement Plan (PIP) does indicate that there are concerns about your performance that need to be addressed. However, its primary purpose is to outline specific expectations and provide you with the support and resources necessary to help you improve. Rather than being just a disciplinary warning, a well-designed PIP is meant to give you a fair opportunity to succeed in your role.

What happens if I fail my PIP?

If you do not meet the goals outlined in your PIP within the specified timeframe, the company may consider further disciplinary action, which could include demotion or termination. The exact consequences will depend on your organization's policies and the nature of the performance issues.

Can I refuse to sign a PIP?

You can choose to refuse signing a PIP, but in many cases, your signature is simply an acknowledgment that you have received and reviewed the document, not that you agree with its contents. Refusing to sign does not prevent the PIP from taking effect or stop your employer from monitoring your progress.

Can a PIP help someone get promoted?

Successfully completing a PIP can demonstrate your commitment to professional growth and your willingness to address areas needing improvement. This dedication may be viewed positively by management and could contribute to future advancement opportunities.

How long should a typical PIP last?

A typical Performance Improvement Plan usually lasts 30, 60, or 90 days, depending on the role, the performance issues being addressed, and how much time is reasonably needed to show improvement. Some PIPs may be shorter for straightforward issues, while others may be extended if progress is being made but more time is needed. The timeline should be clearly stated upfront and include regular check-ins to track progress and provide feedback.

What is the success rate of performance improvement plans?

There is no universal performance improvement plan success rate, as outcomes vary by organization, role, and individual circumstances. Success largely depends on whether the PIP includes clear expectations, realistic goals, consistent feedback, and adequate support. When used as a structured development tool, a PIP can help employees improve and continue in their roles. However, in some organizations, PIPs may also serve as part of a formal disciplinary process.

Final Thoughts

A well-crafted PIP can be a powerful tool for addressing performance issues while supporting employee growth. By setting clear goals, providing resources, and maintaining open communication, employers can foster a positive outcome.

Employees, in turn, should approach PIPs as opportunities to improve, leveraging support and maintaining professionalism. Despite their controversial reputation, PIPs, when implemented thoughtfully, can benefit both parties and contribute to a productive workplace. Tools like Teamflect can help streamline the process by providing templates and tracking progress, ensuring a fair and effective approach.