1 mins readPerformance Improvement Plan (PIP) is a formal, time-bound process used by employers to address and improve an employee's work performance. It defines performance gaps, sets measurable goals, and outlines support and consequences if targets are not met.
What is a Performance Improvement Plan
A Performance Improvement Plan is a structured document and meeting sequence used in performance management. It clarifies expectations, timelines, resources, and criteria for success. The aim is to help the employee improve rather than to punish.
How does it work
The process typically begins with a performance discussion, followed by a written plan with specific objectives, coaching, training, and regular check ins. Progress is monitored against agreed milestones and documented for transparency.
Typical steps
- Identify performance issues and evidence
- Agree measurable goals and timeline
- Provide support such as coaching or training
- Review progress and record outcomes
Practical use and examples
Organizations use PIPs to correct performance, manage probation or support return to work. Examples include improving sales targets, meeting project deadlines, or fixing quality issues.
- Sales representative missing quota
- Engineer with repeated quality failures
- Manager with leadership or conduct concerns
Related concepts
Related HR terms include performance management, disciplinary action, employee development, capability procedures, coaching, and probation. These concepts often overlap with a PIP process.