Underperformance rarely fixes itself. When it goes unaddressed, it slows the team down, hurts morale, and pushes your stronger people to look elsewhere.
The backdrop makes this harder. According to Gallup’s 2025 data, only 31% of US employees were engaged at work, unchanged from 2024. When engagement is that thin, a struggling employee can slip further without anyone noticing.
A performance improvement plan, or PIP, is one way to step in with structure instead of guesswork. Done well, it gives an employee a fair shot at getting back on track. Done badly, it becomes a paper trail for a decision that was already made.
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. Incorporating 360 degree feedback can provide broader context on performance gaps and behavioral concerns. By aligning individual efforts with company goals, PIPs not only help employees succeed but also boost accountability, motivation, and overall productivity.
In this guide, you’ll learn when a PIP makes sense, when it doesn’t, how to write one step by step, what US employers need to watch legally, and how to use the templates and examples below.
A performance improvement plan (PIP) is a formal, written plan that names specific performance gaps, sets measurable goals, and gives an employee a defined period and support to meet them. Managers and HR use it when informal feedback has not worked. It is meant to guide improvement, but it does not guarantee a particular outcome, and in most US states it does not change at-will employment.
These three get mixed up a lot, so here is the quick version.
- Informal coaching is a conversation or two about a gap. It is the right first step for most issues.
- A performance development plan (PDP) focuses on long-term growth and career goals, not a current problem.
- A PIP targets a specific, documented gap with a deadline and a clear statement of what happens next.
If the problem is new, start with coaching. Move to a PIP when the gap continues after clear expectations and real support. Using a PIP as a shortcut to termination is where most of the trouble starts.
When to Use a PIP
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.
2. Behavioral Issues Affecting Teamwork or Productivity
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.
3. Difficulty Meeting Deadlines or Quality Standards
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.
5. Resistance to Feedback or Development
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.
6. Lack of Initiative or Engagement
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.
When Not to Use a PIP
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.
1. When Expectations Aren’t Clear
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.
This is a bigger problem than most managers realize. Gallup’s latest findings show that clarity about what is expected at work has dropped by nine points since 2020. Many “performance problems” start as unclear expectations.
👉 Fix First: Make sure job expectations, training, and resources are crystal clear before you even think about a PIP.
2. When Personal Challenges Get in the Way
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.
3. When the Decision Is Already Made
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.
4. For One-Off Mistakes
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.
5. When It’s a Personality Clash
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.
6. When the Employee Recently Used a Protected Right
If someone recently reported harassment, requested an accommodation, asked for medical or family leave, or filed a complaint, a PIP that follows soon after can look like retaliation, even if your intent was clean. Document any performance concerns that predate the protected activity, and talk to HR or counsel before moving forward.
Fix first: Review the timeline of events and get legal guidance before issuing the plan.
Are PIPs Legal in the US? What Employers Should Know
Yes. PIPs are legal in the US, and in most states employment is at-will. But a PIP can still become evidence in a discrimination or retaliation lawsuit if it looks like a cover for an unlawful decision.
The legal ground has shifted recently. After the Supreme Court’s Muldrow decision, the bar for what counts as an “adverse employment action” got lower, which means PIPs are showing up more often in employment disputes. Courts have not all agreed on how far this goes. For example, the First Circuit held in Walsh that placing an employee on a PIP, without more, was not an adverse action even after Muldrow. That tells you outcomes depend on the facts, so process matters.
To keep your PIP corrective instead of punitive, make sure it does the following.
- Ties every concern to a specific, job-related standard the employee already knew about
- Uses the same process for employees in similar situations
- Includes real support, such as training, coaching, or workload adjustments
- Is documented by dates, examples, and measurable results rather than opinions
- Is reviewed by HR before it goes to the employee
State rules differ. California, New York, and Montana, for example, all treat parts of this differently, and Montana is not purely at-will once an employee passes probation. Check your state’s rules and talk to an employment attorney before you issue a PIP in a sensitive situation. This section is general information, not legal advice.
Key Components of a PIP
1. Specific Goals and Objectives
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:
- Precise and Measurable: Make sure targets are clear and easy to track.
- Relevant: Align objectives with the employee’s job responsibilities and core tasks.
- Time-Bound: Assign deadlines to create urgency and focus.
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. Connecting improvement plans with measurable goals and OKRs makes it easier to monitor progress throughout the PIP period.
2. Timeline for Improvement
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.
No federal law sets a required PIP length, so US employers set their own. A practical rule of thumb is to match the length to the problem.
- 30 days works for narrow, measurable issues like missed deadlines or response times.
- 60 days fits most performance gaps that involve both skills and output.
- 90 days suits complex skill building or behavior change.
Whatever you pick, put the start date, end date, and check-in dates in writing. Be ready to extend the plan in writing if you changed the goals or support midway.
- Shorter Timelines: Ideal for addressing immediate issues (e.g., meeting weekly sales quotas).
- Longer Timelines: Better for more complex challenges, like skill development or behavioral changes.
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.
3. Actionable Steps and Support
Goals are great, but employees need to know how to achieve them. Break down objectives into actionable steps that are:
- Practical and Measurable: For example, if the goal is to improve quality, an actionable step might be: “Double-check all work against a quality checklist before submission.”
- Time-Specific: Assign deadlines for each step to keep progress on track.
Regular check-ins (e.g., weekly meetings) give employees a chance to get real-time feedback, ask questions, and tackle roadblocks.
But it’s not just about tasks — support matters too. This could include:
- Mentorship: Pairing the employee with a mentor for guidance.
- Training: Offering workshops or courses to build necessary skills.
- Tools and Resources: Ensuring they have everything they need to succeed.
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.
4. Clear Consequences
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.
- If the Employee Succeeds:
Positive outcomes could include retaining their position, being eligible for new opportunities, or earning renewed trust from management.
- If the Employee Fails:
Consequences might include reassignment, demotion, or, in some cases, termination.
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:
- Sales Goals: “Close 5 new deals per month.”
- Quality Standards: “Achieve a project error rate of less than 2%.”
- Customer Service: “Maintain a customer satisfaction score of 90% or above.”
Why It Matters: Metrics create transparency and eliminate ambiguity, ensuring both parties understand what success looks like.
6. Regular Feedback and Communication Plan
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.
- Weekly Meetings: To review progress, address challenges, and offer support.
- Progress Reports: Document key achievements and areas that still need attention.
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.
- Ask for Feedback: “Does this plan feel achievable to you?”
- Mutual Agreement: Have the employee acknowledge and agree to the plan in writing.
Why It Matters: Collaboration ensures the employee feels ownership and commitment to the process.
8. Support from HR
Involve HR to ensure the process is fair, legal, and consistent with company policies.
- HR Review: Ensure the PIP is documented and aligns with employment laws and company guidelines.
- HR Mediation: If conflicts arise during the PIP, HR can help resolve them objectively.
Why It Matters: HR involvement safeguards against legal risks and supports fairness in the process.
9. Documentation and Record-Keeping
Maintain thorough documentation of the entire PIP process, including:
- Initial Performance Issues
- Goals and Action Plans
- Progress Updates
- Final Outcomes
Why It Matters: Proper documentation protects the company in case of disputes and ensures transparency.
10. Follow-Up Plan After Completion
Even after the PIP ends, have a follow-up plan to sustain improvement and prevent regression.
- Continued Check-Ins: Monthly or quarterly reviews to monitor ongoing performance.
- Recognition: Acknowledge improvements and successes to reinforce positive behavior.
Why It Matters: Follow-ups ensure long-term success and show the employee that their growth is valued.
How to Write a PIP Step by Step
If you want a quick process to follow, here it is.
Close it out in writing. Document the outcome and the next step, whether that is a return to normal performance management, an extension, or something else.
Gather the evidence. Pull dated examples, metrics, and earlier feedback. If you can’t point to specifics, you aren’t ready for a PIP.
Confirm the standard. Check that the expectation was documented and communicated before the gap appeared.
Get HR involved. Have HR review the draft before the employee sees it.
Write measurable goals. Use targets the employee can track on their own, such as “respond to customer tickets within 4 business hours.”
Add real support. Name the training, tools, and coaching you will provide, and who is responsible for each.
Hold the meeting. Walk through the plan in person or by video, invite questions, and ask for their input.
Check in on a schedule. Meet weekly or every other week, take notes, and send a short written summary afterward.
Best Practices for Implementing a PIP
1. Maintain a Collaborative Approach
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.
- Get Their Input: Involve employees in creating the PIP. Ask for their perspective on the challenges they’re facing and what support they need. For example, if deadlines are an issue, they might suggest tools or processes to help them stay on track.
- Regular Check-Ins: Schedule weekly or bi-weekly meetings to discuss progress, challenges, and adjustments. Make these meetings a safe space where employees feel comfortable asking for help or clarification.
- Offer Resources and Guidance: Provide the tools, mentorship, or training they need to succeed. This shows the company’s commitment to their development.
- Celebrate Small Wins: Acknowledge progress along the way to keep morale high and reinforce positive behavior.
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.
2. Be Transparent and Document Everything
Transparency and documentation are your best allies in implementing a fair and effective PIP. Clear communication and detailed records create trust and ensure accountability.
- Set Clear Expectations: From the start, explain the goals, steps, timeline, and potential outcomes of the PIP. No one should be left guessing about what they need to achieve.
- Document Thoroughly:
- Initial Plan: Outline performance issues, specific goals, and the resources provided.
- Meeting Summaries: After each check-in, document progress, feedback, and any changes to the plan.
- Final Outcome: Whether the PIP succeeds or fails, document the result and the reasons behind it.
- Explain Consequences Clearly: If the PIP could lead to disciplinary action, be upfront about it. Conversely, if the employee succeeds, highlight how that reinforces their value to the company.
Why It Works: Transparency removes ambiguity, while documentation protects both the employee and the company, ensuring a fair and consistent process.
3. Offer Constructive Feedback and Support
The goal of a PIP is improvement, not criticism. Providing constructive feedback and ongoing support makes the process positive and motivating.
- Be Specific: Focus on behaviors and actions, not personal traits.
- Instead of: “You’re not meeting expectations.”
- Try: “I’ve noticed delays in submitting reports. Let’s discuss ways to improve your time management.”
- Regular Feedback: Hold consistent check-ins to review progress, celebrate wins, and tackle challenges. This shows that the company is committed to helping the employee improve.
- Provide Support: Offer the resources they need to succeed — whether it’s mentorship, training, or tools. If workload is an issue, consider redistributing tasks or adjusting deadlines.
Why It Works: Continuous support and clear, actionable feedback help employees feel guided and motivated, increasing their chances of success.
4. Focus on Growth, Not Punishment
A PIP should be seen as a tool for development, not discipline. Emphasizing growth helps employees stay positive and motivated.
- Frame It Positively: Communicate that the goal of the PIP is to help the employee succeed, not to penalize them. Let them know their contributions are valued and the company is invested in their improvement.
- Set Realistic Goals: Ensure the targets are achievable and aligned with the employee’s role. Clear steps for improvement make the process less daunting.
- Avoid Threats: Don’t treat the PIP as a prelude to termination. Instead, approach it as a way to unlock potential and address performance gaps together.
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.
📝 Basic PIP Template
Use this template as a foundation for any role or industry.
-
- Name: ______________________
- Job Title: __________________
- Department: ________________
- Date of PIP Initiation: _______
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.”
3. Specific Goals and Objectives
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.”
4. Action Plan
List the steps and resources available to support improvement.
Example:
-
- Attend a time management workshop.
- Weekly mentorship sessions with [Mentor Name].
4. Timeline for Improvement
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.”
6. Support and Resources
Detail any tools, training, or assistance provided.
Example:
7. Consequences
Explain what will happen if the PIP is successfully or unsuccessfully completed.
Example:
-
- Success: Retain current position and responsibilities.
- Failure: Possible reassignment or termination.
8. Acknowledgment
Employee signature confirms receipt of this plan, not necessarily agreement with it. [Optional] Nothing in this plan changes the at-will nature of employment or creates a contract. Employee comments (optional) can be attached.
Employee signature: __ Date:
Manager signature: ____ Date:
HR reviewer: ____ Date: __
🔧 Customized PIP Examples
1. Sales Role PIP
- Performance Issues:
Failure to meet monthly sales targets for 3 months.
- Goals and Objectives:
- Achieve 10 new client conversions per month for the next 60 days.
- Schedule and complete at least 20 client calls per week.
- Action Plan:
- Weekly sales coaching sessions.
- Access to new CRM tools for tracking leads.
- Timeline:
60 days with bi-weekly check-ins.
- Consequences:
- Success: Eligible for performance bonuses.
- Failure: Possible reassignment to a different role.
2. Customer Service Role PIP
- Performance Issues:
Slow response time and unresolved customer complaints.
- Goals and Objectives:
- Respond to customer queries within 2 hours during business hours.
- Resolve 90% of customer complaints within 48 hours.
- Action Plan:
- Training on customer service best practices.
- Daily review of customer interactions with a supervisor.
- Timeline:
30 days with weekly check-ins.
- Consequences:
- Success: Retain position and receive recognition for improvement.
- Failure: Potential formal warning or transfer to another team.
3. Technical Role PIP
- Performance Issues:
Delayed project submissions and lack of familiarity with new software.
- Goals and Objectives:
- Complete all project deliverables on time for the next 3 assignments.
- Achieve proficiency in [New Software] within 45 days.
- Action Plan:
- Attend software training sessions.
- Weekly check-ins to review project progress.
- Timeline:
45 days with bi-weekly check-ins.
- Consequences:
- Success: Eligible for new project opportunities.
- Failure: Possible reassignment or reduction in responsibilities.
Examples of PIPs in Action
The two case studies below are illustrative examples, not real company data. Use them as a model for structure, not as benchmarks for what results to expect.
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:
- 20% increase in lead conversion within 60 days.
- Follow-ups within 24 hours of initial contact.
To support Alex, the plan provided:
- Weekly mentorship with a senior sales manager to refine strategies.
- Weekly training sessions on objection handling and advanced sales techniques.
- Access to new CRM tools to streamline lead tracking and follow-ups.
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.
🤝 Case Study 2: Improving Workplace Behavior
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:
- Practicing active listening by not interrupting during meetings.
- Participating in conflict resolution training.
- Seeking feedback from team members on her communication improvements.
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.
PIP in Action: How Amazon Handles It
Amazon is the most talked-about example of a large-scale PIP system. The details come from reporting on internal documents, not from Amazon’s public statements, so treat them as reported rather than official.
Amazon’s process has two stages. The first is called Focus, and the second is called Pivot. According to Fortune’s reporting on those documents, fewer than 2,000 employees were in Focus in April 2022, and by the end of that year upwards of 3,300 a month were.
Pivot gives employees three options.
- Work to improve performance
- Leave voluntarily with severance
- Appeal the manager’s decision to place them in Pivot
Critics, including some employment attorneys, argue that programs like this can work more as an exit path than a development tool. That is the lesson for your own PIP. If employees believe the outcome is already decided, the plan loses its value and your legal risk goes up. Make the support real and the goals fair.
Final Thoughts
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. If you’re looking to make performance improvement more structured, measurable, and scalable across teams, you can request a demo to see how it works in practice.
Frequently Asked Questions (FAQs)
How long should a PIP last?
Most US employers use 30, 60, or 90 days, though no federal law sets a required length. Shorter plans suit narrow, measurable problems, while longer ones fit skill building or behavior change. Whatever you choose, put the dates in writing.
Can you be fired while on a PIP?
In most US states, yes, because employment is generally at-will. The exceptions matter, though. An employer cannot fire someone for a discriminatory or retaliatory reason, and some states and contracts add extra protections. That is why a PIP should be genuine and well documented.
Do you have to sign a PIP?
Signing usually acknowledges that you received the plan, not that you agree with it. Many employers note a refusal in writing instead. If you aren’t sure what your signature means, ask HR to explain it before you sign, and consider speaking with an employment attorney.
Is a PIP the same as being fired?
No. A PIP is a documented chance to improve. In practice, some PIPs do end in termination, and some employees are placed on one when the decision has already been made, but a PIP on its own does not end employment.
Can you put someone on a PIP while they are on medical or family leave?
This is a high-risk area. Laws like the FMLA and ADA protect employees from interference and retaliation, so a PIP tied to leave or accommodation requests can create legal exposure. If performance concerns were documented before the leave, talk to HR and counsel before acting.
What should I do if I’m put on a PIP?
Read the plan carefully and ask questions about anything vague. Ask what success looks like and what support you will get. Keep your own notes and copies of your work and emails. Meet every check-in. If you believe the PIP is unfair or tied to a complaint or leave, consider getting advice from an employment attorney.
Do PIPs actually work?
It depends on the cause. PIPs tend to work better when the gap comes from unclear expectations or missing skills, and the employer provides real support. I could not find a reliable national success rate, so be cautious about any specific percentage you see online.
Author
Srikant Chellappa
CEO & Co-Founder of Engagedly
Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast.
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