A performance improvement plan — commonly known as a PIP — is one of the most misunderstood tools in human resources. Used well, it gives struggling employees a clear, supported path back to good performance. Used poorly, it becomes a paper trail for a predetermined dismissal.
This guide covers everything HR professionals and managers need to know about PIPs in 2026: when to use them, how to structure them, what to include, common mistakes, and free templates you can adapt immediately.
What Is a Performance Improvement Plan?
A performance improvement plan is a formal, documented agreement between a manager and an employee that outlines specific performance deficiencies, sets measurable improvement goals, provides support and resources, and defines a timeline for achieving those goals.
Unlike informal feedback or verbal warnings, a PIP creates a structured framework with clear expectations, regular check-ins, and defined consequences if improvement doesn't occur.
According to SHRM's research on performance management, organisations with structured performance improvement processes see 14% higher employee productivity compared to those relying solely on ad-hoc feedback.
When Should You Use a PIP?
A PIP is appropriate when:
- Informal feedback hasn't worked — you've had conversations, provided coaching, and performance hasn't improved over a reasonable period
- The gap is specific and measurable — you can clearly articulate what "good" looks like versus where the employee currently stands
- Improvement is genuinely possible — the employee has the baseline capability but isn't meeting expectations
- You want to retain the employee — a PIP should be an investment in someone's success, not a formality before termination
A PIP is not appropriate for:
- Gross misconduct (use your disciplinary policy instead)
- Issues better addressed through training or role redesign
- Situations where the employee has already resigned mentally
- Personality conflicts disguised as performance issues
How to Write a Performance Improvement Plan: Step-by-Step
Step 1: Document the Performance Gap
Before creating the PIP, gather objective evidence of the performance deficiency. This includes:
- Specific incidents with dates and details
- Quantifiable metrics showing the gap between expected and actual performance
- Previous feedback — verbal warnings, email follow-ups, or meeting notes
- Impact on the team or organisation — how the underperformance affects others
Vague statements like "needs to improve attitude" are ineffective and legally risky. Instead, document specific behaviours: "Missed three client deadlines in Q1 (March 3, March 17, and April 2), resulting in two client escalations."
For guidance on structuring effective evaluations, see our performance review best practices guide.
Step 2: Define Clear, Measurable Goals
Every PIP should include SMART goals — specific, measurable, achievable, relevant, and time-bound targets that the employee can work towards.
Poor goal example: "Improve client communication."
Strong goal example: "Respond to all client emails within 4 business hours. Provide weekly status updates to each active client by end of day Friday. Achieve a client satisfaction score of 4.0 or above (out of 5.0) on the next quarterly feedback survey."
Link PIP goals to your organisation's broader goal setting frameworks to ensure alignment with team and company objectives.
Step 3: Identify Support and Resources
A PIP that only lists problems without providing support is setting the employee up to fail. Include:
- Training opportunities — courses, workshops, or certifications relevant to the skill gap
- Mentoring or coaching — pairing the employee with a skilled colleague or external coach
- Tools or resources — software, templates, or process documentation that could help
- Adjusted workload — temporary reduction in responsibilities to focus on improvement areas
- Regular check-ins — weekly one-on-one meetings to discuss progress, not just a review at the end
Research from Harvard Business Review consistently shows that employees who receive structured support during performance improvement are 2.5 times more likely to meet their goals.
Step 4: Set the Timeline
Most PIPs run for 30 to 90 days, depending on the complexity of the performance issues:
| PIP Duration | Best For |
|---|---|
| 30 days | Straightforward, easily measurable issues (e.g., attendance, meeting deadlines) |
| 60 days | Skill development needs requiring training and practice |
| 90 days | Complex performance gaps involving multiple competencies or behavioural change |
Avoid timelines shorter than 30 days — they don't give the employee a realistic chance to improve and weaken your legal position.
Step 5: Define Outcomes
Be explicit about what happens at the end of the PIP period:
- Successful completion: PIP is closed, employee returns to normal performance management, and improvements are recognised
- Partial improvement: PIP may be extended for a defined period with updated goals
- No improvement: Consequences up to and including termination of employment
This clarity protects both the employee and the organisation. It removes ambiguity and ensures the process is fair and transparent.
Step 6: Get Sign-Off
Both the manager and the employee should sign the PIP document. The employee's signature acknowledges receipt and understanding — not necessarily agreement.
If the employee refuses to sign, note this on the document with a witness present. The PIP remains valid.
Performance Improvement Plan Template
Here's a template you can adapt for your organisation:
PIP Template Structure
Section 1: Employee Information
- Employee name, role, department, and manager
- PIP start date and end date
- Meeting date when PIP was discussed
Section 2: Performance Concerns
- Specific description of each performance gap
- Evidence and examples with dates
- Impact on team, clients, or organisation
- Reference to previous feedback or conversations
Section 3: Improvement Goals
- Goal 1: [SMART goal with measurable criteria]
- Goal 2: [SMART goal with measurable criteria]
- Goal 3: [SMART goal with measurable criteria]
Section 4: Support Provided
- Training/development opportunities
- Coaching or mentoring arrangements
- Tools, resources, or adjusted responsibilities
- Check-in schedule (weekly recommended)
Section 5: Timeline and Milestones
- PIP duration (30/60/90 days)
- Milestone check-in dates
- Final review date
Section 6: Outcomes
- Criteria for successful completion
- Consequences if goals are not met
- Process for extension if partial improvement is shown
Section 7: Signatures
- Employee signature and date
- Manager signature and date
- HR representative signature and date
For a more comprehensive approach to structuring evaluations, explore our performance review builder tool, which includes PIP-compatible templates.
Performance Improvement Plan Examples
Example 1: Sales Underperformance
Performance concern: Sales representative has achieved 58% of quarterly target for two consecutive quarters, compared to a team average of 94%.
Goals:
- Achieve 80% of Q3 sales target (minimum 24 closed deals)
- Complete 15 prospecting calls per day (tracked via CRM)
- Attend the advanced sales methodology workshop by Week 2
Support: Weekly pipeline review with sales director, shadowing top-performing colleague for 3 days, access to updated sales playbook and objection-handling scripts.
Timeline: 60 days with check-ins at Week 2, Week 4, and Week 8.
Example 2: Quality Issues
Performance concern: Software developer's code has failed quality review in 7 of the last 10 pull requests, compared to a team average failure rate of 15%.
Goals:
- Reduce code review rejection rate to below 25% over the PIP period
- Write unit tests covering at least 80% of new code (currently averaging 35%)
- Complete the internal code quality standards certification by Week 3
Support: Pair programming sessions with senior developer (2 hours weekly), access to automated testing workshop, reduced sprint commitment by 20% to allow time for quality focus.
Timeline: 45 days with bi-weekly code quality reviews.
Example 3: Attendance and Reliability
Performance concern: Employee has been late to work 11 times in the past 8 weeks, with 3 unnotified absences, impacting team scheduling and client coverage.
Goals:
- Arrive by 9:00 AM (or scheduled start time) every working day
- Provide at least 2 hours' notice for any absence
- Zero unnotified absences during the PIP period
Support: Flexible start time discussion (can the role accommodate 9:30 AM?), referral to employee assistance programme if personal issues are a factor, weekly attendance check-in with manager.
Timeline: 30 days with weekly reviews.
Common PIP Mistakes to Avoid
Mistake 1: Using a PIP as a Termination Formality
If you've already decided to fire someone, don't dress it up as a PIP. Employees can tell, it damages trust across the team, and it undermines legitimate PIPs for other employees in the future.
Research from Gallup shows that 52% of employees who leave say their manager could have done something to prevent it — genuine PIPs are part of that "something."
Mistake 2: Vague or Unmeasurable Goals
"Improve communication" is not a PIP goal. "Provide a written project status update to stakeholders every Friday by 5 PM" is. If you can't measure it, you can't fairly evaluate whether the employee has met it.
Mistake 3: No Support or Resources
A PIP that says "do better" without providing tools, training, or coaching is unfair and ineffective. It also weakens your legal position if the situation escalates to a tribunal.
Mistake 4: Inconsistent Application
If you PIP one underperforming employee but not another with similar issues, you create grounds for discrimination claims. Apply PIPs consistently across roles, teams, and demographics.
Mistake 5: Insufficient Documentation
Document every check-in meeting, every piece of evidence, and every milestone review. If the PIP leads to termination, this documentation is your legal foundation.
The Manager's Role During a PIP
Managers are the linchpin of a successful PIP. Effective manager training should cover:
- How to deliver a PIP conversation — direct, empathetic, and focused on improvement rather than punishment
- Active coaching during the PIP period — not just monitoring, but genuinely helping the employee succeed
- Documenting progress objectively — tracking against measurable goals, not subjective impressions
- Knowing when to escalate — involving HR when the situation requires additional support or when termination becomes likely
The best managers view a PIP as an investment in someone's career, not a prelude to their exit.
Legal Considerations for PIPs
While a PIP is not a legal requirement in most jurisdictions, it serves as critical documentation if performance-related dismissal is later challenged. Consider:
- Consistency — ensure PIPs are applied fairly across the organisation
- Reasonable adjustments — if the employee has a disability, ensure the PIP process accommodates it under the Equality Act 2010 (UK) or ADA (US)
- Union considerations — if the employee is in a union, follow collective agreement procedures
- Right to be accompanied — in the UK, employees have the right to bring a companion to formal meetings that could lead to disciplinary action
Consult our HR compliance guide for jurisdiction-specific requirements.
Using Technology to Support PIPs
Modern performance management software can streamline the PIP process by:
- Generating PIP templates with pre-built goal frameworks
- Tracking milestone completion with automated reminders
- Storing documentation securely for compliance purposes
- Enabling transparent communication between manager, employee, and HR
- Providing analytics on PIP outcomes to improve the process over time
Organisations using structured performance management tools report 23% higher PIP success rates compared to those using manual processes, according to CIPD research.
Frequently Asked Questions
How long should a performance improvement plan last?
Most PIPs last 30 to 90 days. Choose 30 days for straightforward, easily measurable issues like attendance. Use 60 days for skill development needs. Reserve 90 days for complex performance gaps involving multiple competencies. Avoid shorter timelines — they don't give employees a fair chance and weaken your legal position.
Can an employee refuse to sign a PIP?
An employee can decline to sign a PIP, but this doesn't invalidate it. If they refuse, note the refusal on the document with a witness present. The PIP still applies — the signature confirms receipt and understanding, not agreement with the assessment.
What percentage of employees on a PIP get fired?
Industry data varies, but approximately 60-70% of employees placed on a PIP don't survive to the end. However, organisations with strong manager training and genuine support structures see significantly higher improvement rates — some report 40-50% of PIP employees returning to satisfactory performance.
Is a PIP the same as a written warning?
No. A written warning is a disciplinary action that goes on an employee's record. A PIP is a developmental tool focused on improvement. In practice, many organisations position the PIP between informal coaching and formal disciplinary action, though the exact placement depends on your HR policies.
Should HR be involved in every PIP?
Yes. HR should review every PIP before it's delivered to ensure consistency, legal compliance, and fairness. HR involvement also protects the manager and the organisation if the situation escalates.
Key Takeaways
A performance improvement plan is one of the most powerful tools in a manager's toolkit — when used with genuine intent to help an employee improve. The key elements are clear documentation, measurable goals, meaningful support, a fair timeline, and consistent application.
Before placing someone on a PIP, ask yourself: "Do I genuinely believe this person can improve, and am I willing to invest in their success?" If the answer is yes, a well-structured PIP gives them the best possible chance.
Start with our performance review builder to create structured evaluation frameworks, or explore our performance management software guide to find tools that support the entire performance cycle — from goal-setting to PIPs to development planning.