Last updated: March 2026
Most managers dread having the performance conversation. Employees dread receiving it.
Yet research consistently shows that employees do not just tolerate feedback. They actively want it.
According to Gallup, only 14% of employees strongly agree that their performance reviews inspire them to improve. The problem is rarely the conversation itself. It is the lack of structure around it. A performance improvement plan changes that.
When it is designed well and delivered with the right intent, it gives both sides a clear, shared roadmap. This guide covers everything you need to know about PIPs: what they are, when to use them, how to write one, and the mistakes that cause them to fail.
What Is a Performance Improvement Plan?
A performance improvement plan (PIP) is a formal document used to address specific areas where an employee’s performance has fallen short of what is expected in their role. It outlines the nature of the concern, sets measurable goals for improvement, defines a timeline, and details the support the organisation will provide to help the employee succeed.
The key word is structured. A PIP is not a one-off conversation or an informal note in a file. It is a documented, agreed-upon process that creates accountability on both sides: the employee commits to meeting defined goals, and the organisation commits to providing the resources, feedback, and support to make that possible.
Done well, a PIP is one of the most constructive tools a manager or HR team can use. It replaces vague expectations with clarity, and replaces anxiety with a concrete plan.
Is a PIP a Disciplinary Measure?
This is one of the most common misconceptions about performance improvement plans, and it is worth addressing directly.
A PIP is not a disciplinary action. It is a support mechanism. The intent is to help an employee improve, not to build a paper trail toward termination. That said, if an employee fails to meet the goals outlined in the plan within the agreed timeframe, a PIP may precede more formal HR steps. But that outcome is not the starting point.
How a PIP is framed and delivered matters enormously here. Managers who present it as a final warning will get a very different response to managers who present it as a genuine investment in the employee’s development. The language, tone, and follow-through all shape whether the plan succeeds.
When Should You Use a Performance Improvement Plan?
A PIP is most effective when an employee is underperforming but has clear potential to improve, and when specific, measurable goals can be set to define what that improvement looks like.
Common situations where a PIP is appropriate include persistent underperformance against role expectations, a noticeable decline in output or quality without an obvious external cause, recurring missed deadlines or targets, or a situation where informal feedback and coaching have not produced lasting change.
It is worth pausing here on two scenarios where a PIP may not be the right tool. If an employee’s difficulties stem from a personal or health issue, additional support or a period of approved leave may be more appropriate than a formal improvement plan. And for conduct issues such as repeated insubordination or harassment, a disciplinary process is typically better suited, since it is difficult to set meaningful improvement goals around behaviour in the same way you can around output or skills.
When in doubt, speak to HR before initiating a PIP. Getting the framing right from the outset protects both the employee and the organisation.
What to Include in a Performance Improvement Plan
There is no single universal template, but every effective PIP includes the same core components. Below is what each section should cover.
Employee and Role Information
The basics: employee name, job title, department, their manager or reporting line, and the date the plan was initiated. Clear identification matters for documentation purposes and becomes particularly important if the situation escalates to a formal HR or legal process.
Statement of Purpose
A brief, clear explanation of why the PIP is being put in place. This is not an indictment. It is context. It should communicate what the performance concern is, why it matters to the team and the organisation, and what the plan is designed to achieve. A well-written purpose statement sets a constructive tone for everything that follows.
Specific Areas of Concern
This is the factual foundation of the plan. Each concern should be described clearly, with specific examples, dates, and where possible, documented evidence. Vague statements like “does not meet expectations” are not useful. Specific statements like “missed four of six project deadlines in Q4, with no prior communication to the team” are. Specificity is what allows improvement to be measured.
SMART Goals
Every goal in a PIP should be specific, measurable, achievable, relevant, and time-bound. This gives both the manager and the employee a clear, objective basis for evaluating progress. Goals like “improve communication” are too vague to measure. Goals like “provide a written project status update to the team every Friday by 3pm for the next eight weeks” are not.
Action Plan and Support
What steps will be taken to support the employee in reaching their goals? This might include specific training programmes, coaching sessions, access to a learning platform, regular check-ins with their manager, or mentoring from a senior colleague. The more concrete this section is, the more invested the employee is likely to feel in the process.
Timeline and Check-in Schedule
Most PIPs run for 30, 60, or 90 days. The right duration depends on the complexity of the improvement needed. Whatever the timeframe, build in structured check-ins at regular intervals, not just a review at the end. Midpoint conversations allow issues to be caught early and give the employee a chance to adjust course if needed.
Consequences
A PIP should be transparent about what happens if the goals are not met. This does not need to be punitive in tone, but it does need to be clear. Employees deserve to understand the stakes. Typical outcomes range from a further review period to reassignment, demotion, or, in serious cases, termination.
Sign-off
Both the manager and the employee should sign the completed plan. This creates a formal record of the process, confirms that both parties understand the expectations and timeline, and protects the organisation if the situation requires further HR action.
How to Write a Performance Improvement Plan: Step by Step
1. Investigate before you act
Before putting a PIP in place, take time to understand the root cause of the performance issue. Is it a skills gap? Inadequate onboarding? A change in role responsibilities that was not properly supported? Personal circumstances affecting focus? The best PIPs are built around the actual cause, not just the symptom. Review the employee’s training history, past performance reviews, and any previous feedback or warnings that have been documented.
2. Check your own support provision
Before holding an employee accountable for underperformance, it is worth asking honestly whether they were set up for success. Have they received adequate training? Do they have clear expectations? Have they had the feedback they needed along the way? If gaps in management support have contributed to the situation, those need to be addressed alongside the employee’s own improvement goals. A PIP is a two-way commitment.
3. Draft the plan collaboratively where possible
The manager or HR team typically leads the drafting, but the most effective PIPs involve the employee in shaping them. When employees have input into their own goals and action plan, they are more likely to feel ownership of the outcome. Bring a draft to the initial meeting rather than a final document, and be genuinely open to adjusting it based on the conversation.
4. Have HR review before delivery
Before the plan is presented to the employee, HR should review it to ensure the goals are fair and attainable, the concerns are well-documented and proportionate, and there is no unconscious bias in how the issues are framed. This step protects both the employee and the organisation.
5. Deliver it as a support conversation
The meeting in which the PIP is introduced should be calm, structured, and focused on the future. Acknowledge what the employee does well before moving to the concerns. Be clear about the goals and timeline. Leave space for the employee to ask questions and share their own perspective. End the meeting by confirming the next check-in date and reaffirming the support available to them.
6. Follow through on the support you promised
This is where many PIPs fail. The plan is designed, the meeting is held, and then the manager checks back in only at the deadline. Regular check-ins throughout the process are not optional. They are the mechanism through which improvement actually happens. Consistent, constructive feedback during the plan period is what separates a PIP that works from one that becomes a paper exercise.
7. Close the plan formally
At the end of the PIP period, arrange a closing meeting to review progress against the goals. Celebrate what has been achieved. If the employee has met the objectives, be clear about expectations going forward and how their progress will continue to be supported. If they have not, follow the consequences outlined in the plan. Either way, document the outcome formally.
Performance Improvement Plan Template
To make it easier to get started, we have put together a downloadable Performance Improvement Plan template. It is designed for team leaders, departmental managers, directors, and HR professionals who need a ready-to-use framework they can adapt to their own circumstances.
The template covers every core component outlined in this guide: employee details, areas of concern, SMART goals, action plan, timeline, support provisions, consequences, and sign-off. It is structured to be clear and straightforward for both the manager completing it and the employee receiving it, and can be tailored to suit the specific needs of your organisation, team, or individual situation.
Performance Improvement Plan Examples
Example 1: Skill gap leading to missed targets
Performance concern: A sales development representative is consistently falling short of their monthly outreach targets. Reviewing their activity data and call recordings, it is clear the issue is not effort or motivation but a gap in product knowledge and objection handling skills that has not been addressed since onboarding.
Main goal: Reach 80% of monthly outreach targets within 60 days, rising to 100% by day 90.
Measurable KPIs: Number of qualified conversations per week; conversion rate from first contact to meeting booked; completion of product knowledge modules on the LMS.
Action plan: Enrol the employee in a structured product training programme via the company’s learning platform. Pair them with a senior SDR for bi-weekly shadowing sessions. Manager to review one recorded call per week and provide written feedback. Check-in meetings at 30 and 60 days to review KPI progress before the final review at day 90.
Example 2: Consistent missed deadlines
Performance concern: A project coordinator has missed agreed delivery dates on six of the last eight assignments, impacting downstream team workloads and one client deliverable. Informal conversations about the issue over the past two months have not produced consistent improvement.
Main goal: Meet all agreed project deadlines for 90 consecutive days.
Measurable KPIs: Percentage of tasks delivered on or before the agreed date; frequency of proactive communication when timelines are at risk.
Action plan: Manager and employee to agree realistic timelines together at the start of each project. Employee to complete a time management and prioritisation course. Weekly one-to-one to review workload and flag any blockers early. Any risk to a deadline must be communicated to the manager at least 48 hours in advance.
Example 3: Communication and collaboration concerns
Performance concern: A team member’s communication style has generated consistent negative feedback from colleagues over three months. Specifically, responses to requests are often delayed beyond 24 hours, project updates are withheld until asked for, and two internal stakeholders have raised concerns about tone in written communications.
Main goal: Demonstrate consistent improvement in responsiveness and communication quality over a 60-day period, as evidenced by manager observation and a follow-up 360 feedback exercise.
Measurable KPIs: Response time to internal messages (target: within one working day); proactive project updates shared without prompting (target: at least weekly); no further escalated feedback from colleagues during the plan period.
Action plan: Employee to complete a workplace communication course and share key takeaways with their manager. Bi-weekly check-ins with manager to review specific communication examples. A structured 360 feedback exercise to be conducted at the end of the plan period to assess perceived improvement from colleagues.
Tips for Running a Successful PIP
Get to the root cause first. A PIP built around the symptom rather than the cause will rarely stick. If an employee is missing deadlines, is it a skills issue, a workload issue, a prioritisation issue, or something else entirely? The action plan should address what is actually driving the problem.
Involve the employee in setting the goals. Goals that are imposed tend to generate compliance at best. Goals that are discussed and agreed tend to generate commitment. The employee often has useful insight into their own performance barriers. Use it.
Make the check-ins non-negotiable. A PIP without regular check-ins is just a document. The check-ins are where the manager’s role shifts from assessor to coach. Make them structured, make them consistent, and treat them as a priority regardless of how busy things get.
Acknowledge progress, not just shortfalls. If an employee hits a milestone, say so clearly. Improvement is incremental, and recognising early wins helps sustain momentum through a process that can feel daunting from the employee’s perspective.
Keep documentation current throughout. Do not leave the record-keeping to the end. Notes from each check-in, examples of improvement, and any adjustments made to the plan should all be documented as you go. This creates an accurate, fair audit trail regardless of the outcome.
Common Mistakes to Avoid
Setting goals that are too vague. “Improve performance” or “communicate better” are not goals. Without specificity, there is no meaningful way to measure whether improvement has occurred, and both parties are left guessing. Every goal should answer the question: how will we know when this has been achieved?
Skipping the investigation stage. Jumping to a PIP without understanding what is actually driving the underperformance risks building a plan that solves the wrong problem. If the root cause is a lack of training, address the training. If it is a mismatch between the employee’s skills and the role they have been placed in, a PIP alone will not fix that.
Neglecting the manager’s role. A PIP places visible accountability on the employee, but the manager carries responsibility too. If the check-ins are inconsistent, the feedback is vague, or the promised support never materialises, the plan will fail regardless of the employee’s efforts.
Ignoring the employee’s input. An employee who feels that a PIP has been done to them rather than with them is far less likely to engage with it in good faith. Including them in the process from an early stage is not just good practice; it meaningfully improves the odds of a successful outcome.
Leaving consequences undefined. Clarity about what happens at the end of the plan period, in both directions, is essential. Employees should know what success looks like and what the consequences of not meeting the plan’s objectives are. Vague consequences do not motivate improvement. Specific, clearly communicated outcomes do.
Frequently Asked Questions
What is a performance improvement plan (PIP)?
A performance improvement plan is a formal document that outlines specific performance concerns, sets measurable goals for improvement, defines a timeline, and details the support the organisation will provide. Its purpose is to give an underperforming employee a clear, structured path to meeting the expectations of their role.
Is a PIP a disciplinary measure?
No. A PIP is a support tool, not a disciplinary action. It is designed to help an employee improve, not to document a path to dismissal. That said, if the objectives of the plan are not met within the agreed period, more formal HR action may follow. How a PIP is framed and delivered makes a significant difference to how it is received.
How long should a PIP last?
Most PIPs run for 30, 60, or 90 days. The right timeframe depends on the nature of the issue. A skills gap addressed through targeted training may be resolved in 30 days. A more complex performance or behavioural pattern may warrant 90 days. The timeline should be realistic and agreed by both parties from the outset.
What should a performance improvement plan include?
Employee details, a clear statement of the performance concern with specific examples, SMART goals, a defined timeline with check-in milestones, the support and resources the organisation will provide, the consequences of not meeting the plan’s objectives, and sign-off from both the manager and the employee.
Can a PIP be used for behavioural issues?
PIPs work best when measurable improvement goals can be set. For issues around conduct such as harassment or insubordination, a formal disciplinary process is typically more appropriate. That said, some behavioural concerns, such as communication style or collaboration, can be addressed through a PIP if specific, observable goals can be defined.
What is the role of L&D in a performance improvement plan?
Where a skill or knowledge gap is driving underperformance, learning and development is central to the action plan. This might mean enrolling the employee in specific training, giving them access to a learning platform, pairing them with a coach or mentor, or creating a structured development path alongside their performance goals. The clearer the learning component, the more likely the PIP is to produce lasting improvement.
Final Thoughts
A performance improvement plan is only as good as the intent behind it. When it is used as a genuine support mechanism, with clear goals, consistent follow-through, and honest two-way communication, it can turn a difficult situation into a meaningful development opportunity for both the employee and the organisation.
The organisations that get the most from PIPs are those that treat them as part of a broader performance culture, one where feedback is regular, expectations are clear, and learning is built into how people develop rather than bolted on when things go wrong.
If you are looking to build that kind of culture and give your managers the tools to support their teams more effectively, Thirst’s learning experience platform can help. Take a guided tour to see how it works.
Got 2 minutes?
You cannot improve what you do not measure. Measuring becomes much easier when your learning platform handles the hard work.
Thirst is the #1 learning platform for SMBs, designed to help L&D teams boost engagement, accelerate onboarding, keep compliance on track and bring all learning into one place.
Take a quick guided tour and see how Thirst could support your organisation.
For more L&D insights and resources, visit the Thirst blog.
Synchronous vs Asynchronous Learning: The Main Difference | How to Create an Effective Employee Training Plan | Why is Constructive Feedback Important?
