What is a performance improvement plan?
A PIP is a formal tool designed to align an employee’s performance and potential opportunities for growth with the duties of their role. A PIP typically outlines clear goals, provides targeted resources to close productivity gaps and details action items and goals to be achieved by specific deadlines.
These plans can help employees improve daily work, close skills gaps and resolve behavioral challenges. Establishing clear goals helps team members understand exactly what they need to achieve.
PIPs are commonly used for underperforming employees. In some cases, similar structured plans (such as development plans) may be used to support employees seeking advancement. The goal of a PIP is improvement.
Benefits of PIPs
Implementing PIPs can provide mutual benefits to your business and its employees, including:
- Positive company culture: Helps employees improve skills and fosters a workplace culture of positivity, support and employee value
- Professional growth: PIPs help employees grow in their roles and provide more valuable contributions to your business, building an overall more talented workforce
- Headcount: PIPs can help retain employees when used constructively, though outcomes vary depending on how the plan is implemented and perceived
“Providing ongoing constructive feedback is an essential part of the employment experience. Tools like this are designed to enhance performance and improve communication.”
—Joe Scotto, HR leader
When is it time to administer a PIP?
PIPs typically follow prior feedback and documented communications regarding employee performance. They often address quantifiable performance standards, but may also include qualitative expectations such as communication or behavior.
If you’re not sure whether to prepare a PIP, ask yourself these questions:
- Does the employee have habitual performance problems? PIPs are generally not something used for a one-time issue. If an employee makes a mistake, their supervisor can have a documented conversation to discuss their concerns and allow the employee to make corrections. If the issue continues, it may be time for a PIP.
- Can the issues be corrected with an action plan? Issues with work quality, meeting goals and completing work on time are all examples of behaviors employers may work to correct through a PIP.
- Have you made all reasonable and legally appropriate accommodations to help the employee succeed? If the employee’s low performance is due to a lack of training or other external factors, consider taking the necessary steps to provide the resources they need. If you’ve made these accommodations and the issue persists, a PIP may be what they need to improve.
Considerations for creating a performance improvement plan
Here are some elements employers may consider when creating a PIP:
- Describe why the PIP is needed. Write a statement describing the organization’s performance expectations and how underperformance can impact the business.
- Identify the problem(s). List the performance issues with examples and evidence to demonstrate your statements. Including examples is important to illustrate specific issues that require attention.
- Create measurable objectives. Explain how the employee can correct their performance and include any resources the employer will provide, such as training, mentoring or regular meetings with their supervisor.
- Come up with a schedule. Add a timeline and a deadline outlining when these issues are to be corrected. Managers expect employees to maintain these higher performance standards once they achieve them. Some items may require immediate and sustained improvement. While setting time schedules might not fit every circumstance, be prepared to allow the full period assigned to demonstrate improvement.
- Define the review process. Outline the evaluation schedule and the clear professional milestones that will determine the next steps in their career path.
Performance improvement plan template
Here is a performance improvement plan template employers can adapt to create their own:
[Employee name]
[Employee role/title]
[Employee department]
[Date]
Reason for the improvement plan
The purpose of this performance improvement plan (PIP) is to define clear expectations for your role, outline specific areas for development and establish a collaborative framework to help you succeed and remain in good standing at [Company name].
Performance improvement plan
As discussed with your supervisor, this document provides you with a plan to help align your performance with role expectations in these areas:
- Issue #1: You are expected to [company expectation]. [Provide a brief, objective summary of the current performance gap and how it impacts the team.]
- Issue #2: You are expected to [company expectation]. [Provide a brief, objective summary of the current performance gap and how it impacts the team.]
- Issue #3: You are expected to [company expectation]. [Provide a brief, objective summary of the current performance gap and how it impacts the team.]
Action items and growth objectives
To support your professional growth and help you meet these benchmarks, please complete these activities within [specific timeline, such as 30, 60, 90 days]:
- [Specific improvement goal]
- [Specific improvement goal]
- [Specific improvement goal]
By adhering to this action plan, we are confident you will be able to meet the core expectations of your role and continue contributing to the success of [Company name].
We will review your progress on [deadline] to confirm you have the tools, guidance and support needed to successfully meet these goals.
[Signatures]
Performance improvement plan example
Here is an example of a PIP that uses the prior performance improvement plan template:
Janett Smith
Account Executive
Sales
July 5, 2026
Reason for the improvement plan
The purpose of this performance improvement plan (PIP) is to define clear expectations for your role, outline specific areas for development and establish a collaborative framework to help you succeed and remain in good standing at Wavewood.
Performance improvement plan
As discussed with your supervisor, this document serves to provide you with a plan to help align your performance with role expectations in these areas:
- Issue #1: You are expected to meet a minimum of 80%* of the quarterly quota. During Q2 2026, your final sales volume reached 50% of the established goal.
- Issue #2: You are expected to maintain a quarterly customer retention rate of 50%*. During Q2 2026, the final customer retention rate for your account base was 25%.
* The metrics in this sample PIP are illustrative; quotas and retention targets will vary by company and industry.
Action items to correct performance
To support your professional growth and help you meet these benchmarks, please complete these activities within 60 days:
- Commit to a minimum of three hours of phone time, in office, per day
- Secure no fewer than five lead appointments per week
- Schedule a minimum of two in-person visits with existing clients per quarter
- Complete the Wavewood Tier 2 sales modules
- Ask your immediate supervisor for mentorship and assistance as needed
By adhering to this action plan, we are confident you will be able to meet the core expectations of your role and continue contributing to the success of Wavewood.
We will review your progress on September 3, 2026, to verify you have the tools, guidance and ongoing support needed to reach these milestones and thrive in your position.
[Signatures]
Reviewing the performance plan
Review the PIP draft, preferably with an HR representative, before discussing it with the employee. A well-designed PIP should aim to support improvement rather than function solely as a disciplinary tool..
Consider reviewing the performance plan to verify these points:
- The plan doesn’t have any non-performance-related bias against the employee.
- The objectives are fair and the timeframe is reasonable.
- The employee has been given the proper tools and training to improve.
Implementing the PIP
After drafting the performance improvement plan, consider these steps to implement it:
- Meet with the employee to discuss the PIP. Since conversations about PIPs can be delicate, meet with the employee (in person or virtually) to discuss it. Be prepared for the conversation by having supporting documents ready as examples. Role-play the conversation before meeting with the employee with HR or your supervisor.
- Communicate the goals and timeline to the employee. During the meeting, set out the goals and timeline to the employee to give them targets to work toward. You might ask the employee for their ideas on how to improve results. Including the employee in the plan, rather than directing it, can increase the likelihood of success.
- Allow the employee to ask questions and receive clarification. Ideally, the performance improvement plan is a joint effort. Clarify any questions the employee may have so they understand what your expectations are and how they can meet them.
Monitoring employee progress
Track your employee’s progress toward meeting the goals outlined in the PIP. Schedule follow-up meetings to monitor their progress and check in regularly to address any new questions or concerns to help employees feel motivated and supported.
At the end of the PIP’s timeframe, consider scheduling a final meeting to discuss the outcome. If expectations aren’t met, consider implementing a second PIP or further action according to your company policies.
A well-crafted performance improvement plan (PIP) can demonstrate an organization’s commitment to employee success while protecting business performance. When implemented fairly and supportively, PIPs may foster growth, reduce turnover and strengthen company culture.
