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 effective PIP plans, 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.

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

Creating an effective PIP 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:

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

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.

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.