Struggling with employee underperformance can disrupt productivity, impact team morale, and hinder organizational goals. Without structured guidance, employees may find it difficult to improve, leading to frustration, disengagement, and even turnover.
In fact, companies with highly engaged employees are 23% more profitable than those with low engagement. This highlights the importance of having a clear strategy to support and uplift struggling employees.
Enter the Performance Improvement Plan (PIP) — a formal framework designed to help employees address performance gaps in a constructive way. A well-crafted PIP sets clear objectives, offers actionable feedback, and establishes achievable targets within a defined timeline.
It encourages open communication, provides structured support, and fosters skill development. By aligning individual efforts with company goals, PIPs not only help employees succeed but also boost accountability, motivation, and overall productivity.
In this blog, we’ll explore the best practices, examples, and templates to create effective PIPs. Whether you’re an HR leader or a manager, implementing these strategies can transform underperformance into growth opportunities, creating a thriving and goal-oriented work
Below are key scenarios where a PIP can be beneficial.
A PIP is appropriate when an employee consistently fails to meet performance expectations. This may include missing sales targets, failing to achieve benchmarks, or producing low-quality work. These issues often point to gaps in skills, lack of motivation, or unclear expectations.
A PIP helps by identifying specific performance gaps and providing actionable steps to address them. It also communicates that the organization recognizes the employee’s potential and is committed to their long-term success.
Persistent behavioral issues — such as poor communication, conflicts with colleagues, or reluctance to provide feedback — can disrupt team harmony and reduce productivity. If left unchecked, these behaviors can harm the work environment and project outcomes.
In such cases, a PIP can encourage self-awareness, define acceptable behaviors, and provide structured support through mentoring or training. By addressing these issues, a PIP helps create a positive work environment where employees can contribute effectively to team success.
Employees who consistently struggle to meet deadlines or maintain quality standards may benefit from a PIP. These challenges can stem from insufficient tools, poor time management, or inadequate training.
A PIP sets clear expectations by outlining specific objectives related to timeliness and quality. It provides a structured timeline for improvement and allows managers to assess whether additional resources or training are needed to support the employee’s performance.
If an employee’s performance fluctuates significantly — excelling one month and underperforming the next — a PIP can help stabilize their output by providing clear benchmarks, regular feedback, and consistent expectations.
If an employee resists constructive feedback, coaching, or professional development opportunities, a PIP can outline expectations for growth and cooperation. This approach emphasizes the importance of continuous learning and adaptability.
When employees demonstrate a lack of initiative, enthusiasm, or engagement, it can impact team dynamics and productivity. A PIP can help set goals to encourage proactive behavior, improve participation, and foster a greater sense of ownership in their work.
A Performance Improvement Plan (PIP) can be a great tool for addressing performance issues — but let’s be real, it doesn’t work for every situation. Misusing a PIP can create unnecessary stress and damage trust.
Here’s when you should skip the PIP and try something else instead.
If your employee hasn’t had proper training or doesn’t know what’s expected of them, a PIP isn’t the answer. It’s not fair to hold someone accountable for goals they never understood in the first place.
👉 Fix First: Make sure job expectations, training, and resources are crystal clear before you even think about a PIP.
Sometimes life happens. Maybe your employee is dealing with health issues, family emergencies, or other temporary setbacks. Slapping a PIP on them during a tough time isn’t just ineffective — it’s kind of heartless.
👉 Be Human: Offer support, flexibility, or counseling instead. Sometimes, a little empathy goes a long way.
Let’s be honest — if you’ve already decided to let someone go, don’t waste their time (or yours) with a PIP. It’s not meant to be a box-checking exercise before firing someone.
👉 Keep It Ethical: A PIP should be about helping employees improve, not leading them on.
Everyone makes mistakes. If an employee messes up once or twice, it doesn’t mean they need a full-on improvement plan. PIPs are for consistent or major performance issues.
👉 Keep It Simple: A quick chat or some constructive feedback will usually do the trick.
If two employees just don’t get along, a PIP won’t fix that. These issues are more about relationships than performance.
👉 Resolve Conflicts: Try team-building activities, mediation, or honest conversations to work things out.
One of the most crucial elements of a Performance Improvement Plan (PIP) is setting clear and specific goals. Vague instructions like “do better” won’t cut it. Employees need to know exactly what’s expected of them.
Instead of saying, “Improve communication,” a better goal would be:
“Respond to all emails within 24 hours for the next two weeks.”
These goals should be:
For example, if an employee struggles with deadlines, a goal might be: “Submit all assignments on time for the next 30 days.”
Clear, relevant, and time-bound targets give employees a concrete pathway to success and show them the company is invested in their growth.
A PIP needs a well-defined timeline to ensure accountability and track progress. Timelines typically range from 30, 60, or 90 days, depending on the complexity of the performance issue.
Including milestones and check-ins within the timeline is key. For instance:
“Weekly progress meetings to review tasks, address challenges, and adjust strategies as needed.”
Also, make sure the timeline factors in the support and resources provided to the employee, such as training, mentorship, or additional tools.
Goals are great, but employees need to know how to achieve them. Break down objectives into actionable steps that are:
Regular check-ins (e.g., weekly meetings) give employees a chance to get feedback, ask questions, and tackle roadblocks.
But it’s not just about tasks — support matters too. This could include:
Finally, open communication is essential. Employees should feel comfortable asking for help or clarifying doubts without fear of judgment. Regular encouragement and constructive feedback can boost confidence and motivation.
A PIP should lay out the potential outcomes clearly. Employees need to know what happens if they succeed — and what happens if they don’t.
Being upfront about these outcomes ensures transparency and reinforces the seriousness of the PIP. However, the focus should always be on supporting improvement rather than punishment.
Clearly define how success will be measured. Metrics provide objectivity and help both the employee and manager track progress effectively. For example:
Why It Matters: Metrics create transparency and eliminate ambiguity, ensuring both parties understand what success looks like.
Incorporate a schedule for consistent feedback throughout the PIP period. Regular check-ins help keep the employee on track and provide opportunities for real-time adjustments.
Why It Matters: Ongoing communication fosters a collaborative environment and makes employees feel supported rather than scrutinized.
Engage the employee in the PIP process by encouraging their input. Discussing their perspective and challenges can lead to a more tailored and effective plan.
Why It Matters: Collaboration ensures the employee feels ownership and commitment to the process.
Involve HR to ensure the process is fair, legal, and consistent with company policies.
Why It Matters: HR involvement safeguards against legal risks and supports fairness in the process.
Maintain thorough documentation of the entire PIP process, including:
Why It Matters: Proper documentation protects the company in case of disputes and ensures transparency.
Even after the PIP ends, have a follow-up plan to sustain improvement and prevent regression.
Why It Matters: Follow-ups ensure long-term success and show the employee that their growth is valued.
A PIP isn’t meant to be a top-down directive — it works best as a collaborative effort. When employees feel like partners in the process, it fosters trust, open communication, and mutual accountability.
Why It Works: A collaborative approach shows employees that the company values them and is invested in their success, making the PIP feel supportive rather than punitive.
Transparency and documentation are your best allies in implementing a fair and effective PIP. Clear communication and detailed records create trust and ensure accountability.
Why It Works: Transparency removes ambiguity, while documentation protects both the employee and the company, ensuring a fair and consistent process.
The goal of a PIP is improvement, not criticism. Providing constructive feedback and ongoing support makes the process positive and motivating.
Why It Works: Continuous support and clear, actionable feedback help employees feel guided and motivated, increasing their chances of success.
A PIP should be seen as a tool for development, not discipline. Emphasizing growth helps employees stay positive and motivated.
Why It Works: When employees see the PIP as an opportunity for growth, they’re more likely to engage with the process and take ownership of their improvement.
Use this template as a foundation for any role or industry.
Describe the specific behaviors or performance gaps that need improvement.
Example: “Failure to meet deadlines for 3 consecutive projects” or “Consistent delays in responding to customer inquiries.”
Outline measurable and clear targets.
Example: “Submit all project deliverables on time for the next 60 days” or “Respond to customer emails within 24 hours.”
List the steps and resources available to support improvement.
Example:
Define the duration of the PIP and check-in dates.
Example: “This PIP will run from [Start Date] to [End Date] with weekly progress check-ins.”
Detail any tools, training, or assistance provided.
Example:
Explain what will happen if the PIP is successfully or unsuccessfully completed.
Example:
Scenario:
Alex, a sales representative, struggled to meet monthly targets for three consecutive quarters. While he had excellent communication skills, he faced challenges managing follow-ups and converting leads, which severely impacted his overall performance.
PIP Details:
The company implemented a 60-day PIP to address Alex’s challenges. The plan included measurable targets like:
To support Alex, the plan provided:
Progress Review:
Bi-weekly check-ins were held to review progress, provide constructive feedback, and make adjustments as needed.
Outcomes:
By the end of the PIP, Alex exceeded expectations with a 30% improvement in lead conversion. The structured mentorship and training boosted his confidence, helping him retain his position and rebuild his credibility within the team.
✅ Key Takeaway:
This case highlights how a well-designed PIP with clear goals and strong support can turn underperformance into success.
Scenario:
Emily, a project manager, frequently interrupted colleagues during meetings and made negative comments about their ideas. This behavior led to decreased collaboration and team morale.
PIP Details:
The company initiated a 45-day PIP focusing on improving Emily’s behavior. Specific goals included:
To support her, the company assigned a mentor to help Emily develop her interpersonal and leadership skills.
Progress Review:
Regular check-ins allowed Emily to discuss her progress and challenges while receiving constructive feedback.
Results:
Emily showed significant improvement by the end of the PIP. She actively participated in meetings with a more positive attitude and received favorable feedback from her team. Stronger working relationships and improved collaboration boosted overall team productivity.
✅ Key Takeaway:
This case demonstrates how a PIP can effectively address behavioral issues and promote personal growth within a team setting.
At Amazon, underperforming employees are given a performance rating of “Needs Improvement.” They are placed on a program called “Focus,” which provides a development plan to help them get back on track.
If employees fail to improve during the Focus period, they move to a program called “Pivot.” At this stage, they have two choices:
✅ Key Takeaway:
Amazon’s approach shows how PIPs can serve as both a structured development tool and a final opportunity for employees to align with performance standards.
A well-crafted Performance Improvement Plan (PIP) is more than just a corrective tool — it’s an opportunity for growth and development. By setting clear goals, maintaining open communication, and providing actionable support, PIPs create a pathway for employees to succeed.
Customizing PIPs to address specific roles and challenges makes them more effective, while templates ensure consistency and clarity. When implemented thoughtfully, PIPs can transform underperforming employees into productive, engaged contributors.
By following best practices and learning from real-world examples, organizations can foster a culture of continuous improvement and support. In the end, a successful PIP benefits both employees and the organization, promoting growth, accountability, and long-term success.
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