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What is a performance improvement plan (PIP)?
A performance improvement plan, or PIP, is a tool used by employers to give underperforming employees a constructive and supportive pathway towards meeting the expectations of their role.
When an employee isn’t meeting their targets or performing their duties adequately, it can negatively impact not only their own workflow, but also the output of others. This can have a knock-on effect on morale, create a bottleneck in a project, or result in another employee having to pick up their work.
Performance improvement plans are designed to support employee engagement through open communication, structured support, clear expectations and agreed-upon consequences, without necessarily resorting to a progressive disciplinary process.
When is it time to put an employee on a PIP?
Poor performance can take many forms. If an employee is consistently demonstrating any of the following, it might be time to consider a PIP:
Frequently missing targets or benchmarks
A pattern of poor-quality work
Inconsistency or unreliability
Limited improvement following feedback
A noticeable decline in engagement or performance
On the other hand, there are a number of workplace issues that can arise that should be addressed without a PIP, such as:
Unclear expectations
lack of training, resources or support
Serious misconduct
Isolated incidents
A PIP should be used to help an employee who is consistently underperforming get back on track. Honest mistakes and personal issues should be dealt with sensitively and respectfully, disputes should be resolved through an appropriate process, and serious misconduct should be addressed through the appropriate disciplinary process.
Introducing a PIP into your workplace
So, you’ve got an employee whose performance you’d like to improve. With deadlines looming and targets coming down to the wire, there’s no time to lose. But where do you start?
First things first, you need to be prepared. While a performance improvement plan is built on collaboration and a shared interest in fostering development, the process needs to start with clear expectations. Before your first meeting, make sure you’ve established the following:
1. Specific goals and objectives
You’ll have already identified which part of their job your employee is underperforming in. So now it’s time to work out exactly what successful improvement looks like. These goals should be precise, measurable and time-bound.
2. Defined timeline
A reasonable and well-defined timeframe is essential for achieving measurable results. There’s no standard or legally required duration for a PIP, so the timeline should reflect the nature of the performance concerns and the employee’s role. 30-, 60-, and 90-day approaches are popular frameworks to start with.
3. Clear consequences
The employee needs to understand, particularly for behavioural issues, what may happen if they fail to improve. This could mean further disciplinary action, changes to their role or, where appropriate, dismissal. The consequences should be clearly explained without suggesting that any particular outcome is automatic.
4. Measurement criteria
Alongside the specific goals and objectives, success needs to be measured objectively using clear indicators that reflect the nature of the issue. These could include sales or conversion metrics, target percentages, or the number of infractions for issues such as lateness or attendance.
5. Documentation
Transparency is paramount, so the employee knows exactly how their PIP is progressing and whether they are on the right track. Proper documentation also creates a clear record of expectations, support, feedback and progress, which can be important if the situation later leads to a dispute.
With these five steps taken into consideration, you’re ready to put together your performance improvement plan and invite the employee to a meeting to begin the process.
Performance improvement plan templates
Knowing the best practices for conducting a performance improvement plan will take you far, but having a robust template to work with will allow you to go the distance.
Download a PIP template designed by HR experts
If you’re looking for a tried-and-tested template designed with input from qualified professionals, look no further than BrightHR’s documents & templates. On BrightBase, you can find hundreds of HR templates for people management and more.
Coupled with 24/7 HR & employment relations advice included in our service, you can act with confidence knowing you’re supported by our team of experts. Access expertly written policies, templates and guides with BrightBase.
Create your own PIP template
Follow this simple structure to create a performance improvement plan that supports a compliant process, treats the issue with sincerity and reinforces the collaborative nature of the process.
Date: XX/XX/XXXX
To: [Employee Name]
From: [Manager’s Name]
Introduction: Explain what a PIP is, why it has been introduced and the performance concerns it is intended to address. Include how frequently you intend to review progress.
Description of performance concerns
Summarize the performance issues that the PIP is intended to address, using clear and specific examples where possible.Expectations and improvement targets
Include a detailed description of the relevant role expectations, the improvements required and a specific timeline for achieving them.Support and resources
Outline the support the employee will receive to help them meet their goals. This could include mentoring, peer support, training, tools, resources or additional supervision.Potential consequences
Set out the potential consequences if the required improvements are not made. These should be clear, appropriate and time-bound, while recognizing that the appropriate outcome will depend on the circumstances.Employee comments
Give the employee an opportunity to provide feedback on the PIP. This helps ensure the process is a collaborative effort to address performance concerns and gives the employee a chance to raise any issues or support they feel they need.
Date and signature: Include space for both the employee and manager to sign and date the completed PIP.
Completing a performance improvement plan
Once you’ve reached the end of your outlined timeline, you should have a completed list of deliverables, whether they’ve been achieved or not. You’ll also have had regular check-ins with the employee to review progress, adjust targets and reinforce expectations and potential consequences.
With all of this to hand, you’re ready to decide what comes next. You might find that the employee is still just falling short, in which case extending the PIP could be appropriate. Simply return to step one and make any relevant adjustments.
You might find that the employee has failed to meet the required improvements or has disengaged from the process, in which case the potential consequences you outlined may need to be considered.
Most likely, however, if you’ve taken a measured and collaborative approach throughout the process, you and your employee have worked diligently to improve their performance — and you may have avoided the need for further disciplinary action.
Congratulations.
HR advice and documentation at your fingertips
Navigating a performance improvement plan can be stressful. As with all people and performance management, you want to be fair and sensitive without losing sight of what keeps productivity and employee satisfaction on track. You’d be forgiven for wanting some advice to help you through these tough conversations — and that’s where we come in.
With BrightHR, you gain access to 24/7 advice from HR & employment relation experts who can help you navigate the challenges you face. Paired with expertly written documents, templates, guides and more on BrightBase, you can act with confidence and make informed decisions for your employees.