Performance Improvement Plan

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What a performance improvement plan is

A performance improvement plan, often called a PIP, is a structured framework that identifies where an employee’s performance is falling short and sets clear, measurable goals to address it. It is usually time-bound and supported by regular reviews.

Its purpose is constructive: to give the employee a fair, defined opportunity to improve, with clear expectations and support. It also documents the steps taken so both sides understand the goals and the consequences of meeting or missing them.

When a performance improvement plan is used

• When an employee’s performance is below the standard required.
• When informal feedback has not produced the needed improvement.
• When a structured, supported route to improve is appropriate.
• After a review highlights specific areas to address.
• When a clear, documented plan with goals and timelines is needed.

What a performance improvement plan should include

• The employee’s name, role and the start date of the plan.
• A clear description of the performance concerns.
• Specific, measurable goals tied to the role’s expectations.
• The support, training or resources to be provided.
• The review period and dates for check-ins.
• How progress will be measured and by whom.
• The consequences of meeting or not meeting the goals.
• Space for the employee and manager to acknowledge the plan.

Common mistakes

• Setting goals that are vague, unrealistic or hard to measure.
• Offering no support or resources to help the employee improve.
• Allowing too short a period to show genuine progress.
• Failing to hold the agreed review check-ins.
• Treating the plan as a formality rather than a real opportunity.
• Keeping no record of the agreed goals and reviews.

Good practice

• Make goals specific, measurable and tied to the role.
• Provide genuine support, training and regular feedback.
• Agree a fair timeframe and hold the scheduled reviews.
• Keep the tone constructive and focused on improvement.
• Document the plan, the reviews and the outcome clearly.