Performance Improvement Plan Template & Guide
When an employee isn't meeting expectations, it can be difficult to know how to respond. Ignoring performance issues can hurt team morale and productivity, while taking action without a structured approach can lead to legal risks and broken trust.
Performance improvement plans (PIPs) offer a clear and constructive way forward. A well-designed PIP outlines specific goals, timelines, and support to help employees improve, while also protecting the organization and setting consistent standards.
With over 15 years of experience managing teams across industries, I’ve written, implemented, and coached others through dozens of performance improvement plans. I’ve seen firsthand how to use them effectively—as a tool for growth, accountability, and better outcomes.
In this guide, I’ll walk you through how to use performance improvement plans in your organization, with the right involvement from HR and legal counsel, so you can handle tough situations with confidence and care.
What Is A Performance Improvement Plan (PIP)?
A Performance Improvement Plan is a structured, documented process used by employers to help employees address performance issues in a clear and supportive way. It is a formal document typically initiated when an employee is not meeting job expectations and outlines the specific areas where improvement is needed.
The plan includes clear expectations, defined goals, timelines for achieving them, and the resources or support available—such as coaching, training, or regular feedback sessions. It also communicates the potential consequences if the performance issues are not resolved within the set timeframe.
At its core, a PIP is both a formal accountability tool and a roadmap for improvement. It gives employees a fair opportunity to understand expectations, take action, and demonstrate progress, while helping employers manage performance concerns and skill gaps in a transparent and consistent manner.
Benefits Of A Performance Improvement Plan
PIPs help team members understand that their current performance is not meeting expectations and are sometimes a last-ditch effort to get employees on the right track before termination.
This is a normal part of the performance management process, however, a PIP should never be a surprise if being leveraged for corrective action.
In other cases, PIPs can be used in a much different way, focusing on employee development to prepare them for a new role in the company.
In these cases, a PIP is not considered disciplinary and does not include information about next steps if the PIP is not successful. These cases are much less common than disciplinary, action-related PIPs.
Potential benefits of using a PIP include:
Clarifies expectations
A PIP clearly outlines the performance standards and expectations, helping employees understand any performance gaps and what is required for them to succeed.
Provides structured support
It offers specific guidance and resources, such as training or mentorship, to help employees address performance issues and skill gaps.
Improved performance
By focusing on measurable goals and providing a roadmap for improvement, PIPs can lead to better individual and team performance.
Encourages employee development
The plan can help employees identify areas for growth and development, leading to skill enhancement and career progression.
Boosts employee engagement
When approached positively, a PIP can show that the organization is invested in the employee's success, potentially increasing motivation and engagement.
Minimizes legal risks
Documenting performance issues and efforts to support improvement can protect the organization if termination becomes necessary, reducing legal risks.
Saves costs on turnover
Retaining and improving an underperforming employee is often more cost-effective than hiring and training a replacement.
What To Include In A PIP
A Performance Improvement Plan (PIP) should include the following key components:
Specify performance deficiencies
Clearly identify the areas where the employee's performance is falling short. Provide concrete examples, such as missed deadlines, low productivity, or specific behavioral concerns.
Goals for improvement
Set measurable and achievable goals that the employee needs to meet to improve their performance.
These goals should be specific, time-bound, and linked to the identified performance issues (e.g., "increase sales by 20% within 60 days" or "meet all project deadlines for the next three months").
Action plan
Outline the steps the employee should take to improve. This may include training programs, mentoring sessions, changes in work processes, or other relevant activities. The plan should also specify who will provide support or resources.
Support and resources
List the support mechanisms available to the employee e.g. coaching, training, or access to tools and resources that can help them succeed.
This demonstrates the employer’s commitment to helping the employee improve.
Timelines and milestones
Provide a clear timeframe for the PIP, typically 30, 60, or 90 days with interim milestones to track progress at regular intervals such as weekly or bi-weekly check-ins.
Evaluation criteria
Define how success will be measured. These criteria should be objective and quantifiable, linked to the goals outlined in the PIP.
For instance, metrics could include meeting sales targets, reducing error rates, or improving customer satisfaction scores.
Consequences of not meeting goals
Explain the potential outcomes if the employee does not meet the PIP objectives. This may involve extending the PIP, redeployment to a different role, or potential termination.
Signatures and acknowledgment
Include spaces for both the manager and employee to sign the document, acknowledging that they have reviewed and understood the PIP. This helps ensure accountability and mutual understanding.
Using SMART Goals in Performance Improvement Plans
Setting effective goals is one of the most critical components of a performance improvement plan. Without clear expectations and measurable outcomes, it’s difficult for the employee to succeed—or for managers to assess progress fairly.
That’s why incorporating the SMART criteria into PIP goals is considered best practice. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound, and this framework ensures that every goal in the plan is clear, actionable, and aligned with business needs.
What Does SMART Mean in a PIP Context?
Specific
Goals should clearly state what the employee needs to improve. Avoid vague statements like “be more proactive” and instead focus on concrete behaviors or outcomes.
Example: Respond to all client emails within one business day.
Measurable
The goal must be trackable. Include metrics or benchmarks that allow both the manager and employee to evaluate success.
Example: Increase monthly customer satisfaction scores from 3.2 to at least 4.0.
Achievable
Goals should be realistic given the employee’s role, resources, and timeframe. Overly ambitious goals can lead to frustration or failure.
Example: Reduce order entry errors by 50% over the next 30 days with support from a QA checklist.
Relevant
The goals must align with the employee’s core responsibilities and support broader team or company objectives.
Example: Improve accuracy in financial reporting to support quarter-end close with fewer corrections.
Time-bound
Every goal in a PIP should include a clear deadline or review period. This creates accountability and gives both parties a shared timeline for improvement.
Example: Complete all assigned training modules by the end of the 45-day improvement period.
Why SMART Goals Improve PIP Outcomes
Using SMART goals in PIPs helps create mutual clarity and reduces ambiguity about what “success” looks like. It also protects the organization by demonstrating that the employee was given a structured, fair opportunity to improve.
When goals are vague or unrealistic, performance conversations can become subjective and lead to misalignment. SMART goals provide a neutral, objective foundation for coaching, feedback, and eventual decisions about employment status if progress is not made.
Who’s Responsible For Enacting A PIP?
The primary responsibility for enacting a Performance Improvement Plan (PIP) typically falls on the employee's direct manager or supervisor.
However, while the direct manager plays the most prominent role, a collaborative effort involving HR and the employee is crucial for the PIP's success.
Here’s how the different roles contribute:
Manager or supervisor
- Initiates the PIP: The manager identifies poor performance and drafts the PIP, outlining specific goals, actions, timelines, and success criteria.
- Monitors progress: It’s the manager’s responsibility to conduct regular check-ins to track the employee's improvement, provide feedback, and make any necessary adjustments to the plan.
- Provides support: The manager ensures that the employee has access to the necessary resources, such as training or mentoring, to achieve the PIP goals.
- Evaluates outcomes: At the end of the PIP period, the manager assesses whether the employee has met the objectives.
Human Resources
- Guidance and oversight: HR may provide advice on structuring the PIP to ensure it aligns with company policies and legal requirements.
- Documentation: HR ensures the PIP process is properly documented, which is essential if further disciplinary action is needed.
- Support to managers and employees: HR can offer resources or additional training to both the manager and the employee to facilitate the PIP.
Employee
- Active Participation: The employee is responsible for engaging with the PIP process, taking the necessary steps to meet the outlined goals, and communicating any challenges.
Types Of Performance Improvement Plan
There are several different types of performance improvement plans that can be used to help improve an employee’s job performance. Generally, these plans are either corrective/disciplinary or focused on employee development.
The types of plans include:
1. Corrective Action Plan—this type of plan involves identifying and addressing performance levels through training, coaching, and/or disciplinary action.
2. Developmental Plan—this type of plan focuses on providing employees with attainable training and opportunities for growth related to their current roles or preparing them for potential future roles within the organization.
3. Career Development Plan—this type of plan is focused on helping employees develop skills needed for advancement in their chosen career path.
The following information in this article focuses on a disciplinary-related PIP as those are the most common and the most critical to be executed according to the correct protocols.
Continue reading here if you want to learn more about disciplinary and performance-related PIPs.
Why Put Someone On A PIP?
Performance improvement plans are typically put in place when someone isn’t meeting the job expectations of their current role.
In my personal experience, a few reasons why you would put someone on a PIP:
Underperformance
The employee is not performing in their role and your prior attempts to correct the behavior have not been successful.
This person requires a final warning with clear documentation and known consequences, typically including termination or demotion.
This is a more wide-reaching PIP reason, but oftentimes it's not just one thing that’s not going to plan when an employee has reached the point of requiring a PIP.
Unprofessional or inappropriate behavior
If the employee engaged in unprofessional or inappropriate behavior, a PIP can be implemented to help the employee understand and address the issue.
Of course, some unprofessional and inappropriate behavior is grounds for immediate termination.
Inability to follow standard procedures
If someone consistently demonstrates an inability to follow standard procedures set by the organization, a PIP can provide guidance on how those processes should be followed correctly and outline what will occur if processes continue to not be followed.
Poor attendance/low productivity
If someone has continually demonstrated poor attendance and/or is negatively impacting business operations due to low productivity or is creating more trouble than value in the organization overall.
Regardless of the driving cause, the decision to put someone on a PIP should not be taken lightly as it will likely alter the employee/manager relationship regardless of the outcome of the PIP.
Once someone is placed on a PIP, they will often seek out alternative employment, and may exit the organization before the completion of the PIP, especially if they do not believe the PIP is reasonable or that it is easy or realistic for them to achieve success.
PIPs are often the last step in performance management before the termination of an underperforming employee.
According to Mark Carey, a partner at an employment law firm, “only about 5%-10% of PIPs result in the employee staying” with the company, so use this tool carefully!
Is a performance improvement plan a disciplinary step?
A PIP is not necessarily a disciplinary step, but it can feel that way to employees.
While it aims to support improvement, it can also serve as documentation if further disciplinary actions, like termination, become necessary if performance does not improve.
Organizations often see it as a last effort to help employees succeed before considering more serious consequences.
However, if not communicated well, employees may perceive it as a precursor to disciplinary action.
How To Create A Performance Improvement Plan
As I said, PIPs should be used with caution. To be effective, you need to craft a plan that is achievable, synced with the individual/team role and goals, and ensures that the team member receives proper support throughout the process.
This can be done in a few simple, critical steps.
Step 1: Consider if a PIP is appropriate
The first step in creating a PIP is confirming that it is the right tool for the job. A PIP should never be a surprise.
The team member should have already received feedback and coaching from their manager (often many times) regarding the problematic issues which must now be addressed in a PIP.
If you’re a manager who has not yet discussed performance with the team member you want to put on a PIP, it's not time to use a PIP yet.
If the team member you’re considering placing on a PIP is newer to the organization, reflect on their onboarding experience (were they trained effectively? Would additional training fix the problem?).
The first step to implementing a PIP is having a conversation with the team member about performance and your expectations first, and always follow up with an email to document the conversation and confirm your expectations (HR will love you for this).
Once your conversations and follow-ups have proven unsuccessful over time, then it's right to consider using a PIP.
There are some exceptions to this rule, but that’s typically in the inappropriate behavior category—you’ll know these moments when they happen, they will be obvious (in a bad way).
Keep your human resources representative informed along the way. Your request as a manager to put an employee on a PIP should also not be a surprise to HR.
Step 2: Create the plan
The first real documented step to putting someone on a PIP is to talk with your HR representative about their performance, your prior attempts to provide feedback and coach the employee, and why you believe now is the time to place the team member on a PIP.
Providing constructive feedback is pivotal for employee development. To ensure your feedback is both impactful and motivating, referring to example phrases for performance reviews can help tailor your message for positive outcomes
HR should acknowledge your request and will hopefully provide a template for the PIP that is specific to your organization and approved by the company’s employee relations lawyers.
Do not write and deliver a PIP without the involvement of your company’s HR representative. If done incorrectly and the employee experiences any harm, you may be personally liable. Consult your company’s HR representative and/or corporate counsel.
If you’re lucky enough to receive a template from your HR representative, start there and do not use alternative templates—always align with your organization. If there isn’t one available, you can download the template at the end of the article.
Talk through the template with your HR representative and ensure you understand what is expected to be documented in each area of the template. Next, it will usually be up to you, the manager, to create the documented plan in the template.
PIP templates typically include the following sections, all of which will require your input as a manager:
- Areas of concern—what’s not working? What happened? Use metrics and data if possible.
- Observations, previous discussions, and counseling—what you’ve seen and done about it so far.
- Expectations or performance goals—what is expected related to the areas of concern and the job role e.g. metrics, behaviors, outcomes, project delivery, and more (be specific).
- Recommended changes—what you expect the employee to change to meet the expectations outlined in the plan and the job role.
- Resources—what’s at the employee’s disposal to meet the expectations of the plan and the role.
- Management support—what the manager will do to support the employee in their improvement plan.
- Progress checkpoints—when will the manager and the employee talk about the PIP specifically in the future? How will the employee’s progress be monitored?
- Timeline and milestones—how long is the PIP, and when will it be over? 30, 60, or 90 days are normal. I prefer 60 days as that’s enough time to see a change but short enough that it doesn’t feel like it goes on forever.
- PIP period expectations and consequences—during the PIP timeframe, what are the conduct expectations and consequences during the PIP period? Are they altered? List the consequences (often up to and including termination).
- Acknowledgement—always have the employee, manager, and HR representative sign the document after it is delivered to the employee. The document is not considered complete and delivered until signatures are received.
When creating a PIP, review the job description of the underperforming employee and ensure what you're asking them to do is clearly described and that they've had enough time in the role to learn how to be successful.
You will use the job description in the PIP itself, so keep it handy!
Consider how the employee is and is not meeting performance expectations and reflect to consider if you can identify the root causes of the issue.
Be ready to describe the specific areas of their effort and behaviors that contribute positively to effective performance and those that do not.
Review their most recent performance review and look for specific instances where you previously provided feedback, coaching, or counseling on the issues that have driven you to write a PIP. Consider if the employee’s lack of work performance is measurable and, if so, be sure they’re aware of the performance measurement.
Struggling employees are often aware of their underperformance, especially when their manager has been giving feedback along the way.
Clear communication around expectations is essential for ensuring a PIP is not a surprise and employees can engage with managers to facilitate an effective performance improvement plan.
If an employee is surprised or describes feeling blindsided by a PIP, take that as a warning sign and discuss with your HR representative immediately.
Once you have all of these items reviewed thoroughly, document the PIP in a written format. You can try our PIP template as a starting point but, of course, always review with your HR representative and/or corporate counsel.
Step 3: Explain the plan to the employee
Once you’ve authored the PIP, review it with your HR representative, make any required changes or clarifications, and talk through how you and the HR representative will work together to deliver the PIP to the employee live/in-person or on a video call.
In my personal opinion, it's best when the manager and author of the PIP present it to the employee with HR’s support and presence throughout the conversation.
It’s important HR is present during this conversation as a witness and to signal to the employee that this is a serious matter with real consequences.
Oftentimes, just the presence of HR in a conversation about performance will help an employee wake up and see that what they’re doing is not working and they must change.
You might hear an employee say: “Am I getting fired?” as soon as they see HR in the room.
If this happens, calmly respond with “No, we are here to discuss your performance and implement a performance improvement plan.” Plain, simple, and factual answers will be your friend as you progress through the conversation.
As you begin the conversation, frame the discussion and talk through each element of the document you prepared ahead of time (present a printed copy to everyone present in-person and/or share screen if video call). Stick to the document as best you can. You could almost read through it line-by-line if prepared well.
By sticking to the document you ensure everything you talk about is documented and the employee can refer to the document later as they recall the conversation and try to process what happened (often it turns into a blur or fuzzy time because of the body’s natural threat or shock response, so stick to the script!).
As you close the conversation of delivering the PIP, be sure the employee understands they will receive a copy of the document presented and that they’re required to sign the document to acknowledge:
- They’ve received it
- It has been discussed with them
- They understand the contents and corrective action required along with acknowledgment of the potential consequences of noncompliance.
Put a due date on the signature, typically less than 3 days.
You might also consider sending them home or offline for the rest of the day after delivering a PIP as it can be a rather emotional process.
Step 4: Monitor progress
After you’ve delivered the PIP, things are sure to feel a little weird—maybe even tense.
As the employee’s manager, you’re invested in their performance and improvement. Position this to the employee and try to get back to a positive, growth-oriented mindset.
The most successful plans I’ve experienced were where the employee reached out to close colleagues or mentors for help in achieving their PIP.
Throughout the PIP duration, regular check-ins between the manager and the employee and the manager and the HR representative are essential elements to facilitating an effective performance management process.
Be active in measuring and monitoring progress. As a manager, this is not a time to sit back and see if the employee can change, you are required to participate in their growth.
Remember the resources and manager support documented in the plan, it’s your job to be sure you hold up your end of the deal (and yes, there can be legal consequences for failing to do so).
I suggest committing to reviewing the PIP documentation directly with the employee every 2-weeks, in addition to the (hopefully) weekly one-on-ones you are already holding.
This allows for some conversations to directly include the PIP and some not.
Create a cadence that keeps the employee engaged and thinking about their growth without holding the PIP document over their head in every interaction during the PIP duration. If your document includes specific sign-off of follow-ups, be sure they are documented correctly.
As you monitor progress, if things are not changing or you’re seeing a negative change in the employee, call that out. Ask the employee how they feel they’re progressing toward the goals of the PIP.
Have honest conversations about how it’s going—this will help as you reach the end, especially if consequences are required.
In some cases, you may experience a curveball where the employee states they simply don’t want to do the PIP or continue in the role.
If this happens, change the tone of the conversation slightly to be more consultative and acknowledge that the employee is on a PIP with an end date.
If the performance goals are not met by the end date, the employee will experience consequences up to and including termination.
Next, inform your HR representative about the slight shift in events and consult with them on what is best to do next.
By taking this course of action, you continue to manage performance and have cause to remove the employee at the end of the PIP, but maybe there’s a better path either within or outside of the organization—partner with HR, they can help.
Step 5: Assess options
As you near the end of the PIP period, you and the employee should have a clear understanding of whether the PIP expectations and goals will be met or not.
If the employee has met the goals:
Celebrate the achievement. Acknowledge the effort it took to improve, and transition the employee back to your regular performance management process. Recognition—whether through a one-on-one conversation, written acknowledgment, or next-step planning—helps reinforce positive progress and boost morale.
If progress has been made but goals aren’t fully met:
You may consider extending the PIP if there’s a clear path forward. Adjust timelines or expectations accordingly, and document the decision with input from HR.
If goals were not met:
Meet with HR to review the full process, including feedback given and coaching provided. If the decision is to end employment, follow your organization's termination and offboarding procedures. This should include a final conversation with HR, the manager, and the employee, and must be handled with care and legal oversight.
Regardless of the outcome, always document the conclusion of the PIP and maintain clear, respectful communication throughout. The goal is not only to manage performance, but also to support a fair, transparent process that aligns with your company’s values.
Tips For A Successful PIP
Realize I’ve included a lot of information above, so here’s a summary of the tips for a successful PIP:
1. Clear goal-setting
- Define specific, achievable objectives with clear performance metrics. Make sure goals are measurable and time-bound to assess progress accurately.
2. Collaborate with the employee
- Involve the employee in creating the PIP to ensure they understand the expectations and feel invested in the process. Get their input on what support they might need to succeed.
3. Provide regular feedback
- Schedule frequent check-ins to discuss progress, challenges, and adjustments. Continuous feedback helps keep the employee on track and provides an opportunity to address issues as they arise.
4. Offer resources and support
- Identify the training, mentoring, or other resources needed to help the employee improve. Provide the necessary tools and guidance to support their development.
5. Document everything
- Keep a detailed record of the PIP process, including meetings, feedback, and progress updates. This is important to help protect the organization and the employee by ensuring transparency.
6. Focus on positive reinforcement
- Acknowledge improvements and celebrate small wins along the way. Positive reinforcement can boost motivation and encourage continued progress.
7. Set realistic timelines
- Establish a timeframe that allows the employee enough time to demonstrate improvement. Be flexible, if needed, but ensure there is a clear end date for evaluating success.
8. Stay objective and supportive
- Approach the PIP with a constructive mindset, focusing on growth rather than punishment. Be empathetic and avoid making the employee feel like they're being singled out.
9. Prepare for different outcomes
- While the goal is improvement, be prepared to take appropriate actions if the employee fails to meet the PIP objectives, whether it's extending the PIP, redeployment, or termination.
Performance Improvement Plan Examples
Example 1: Sales performance
Issue: The employee has not met their sales targets for the past three months.
Goals:
- Increase monthly sales by 20% within three months.
- Achieve a minimum of 10 new client acquisitions per month.
Actions:
- Attend a sales training course focused on negotiation skills within the first month.
- Schedule weekly one-on-one meetings with the sales manager to discuss strategies and progress.
- Make a minimum of 30 outbound calls per day to prospective clients.
Timeline: Three months
Success Criteria:
- Sales targets are met or exceeded for two consecutive months.
- New client acquisitions meet the goal of 10 per month.
Example 2: Customer service quality
Issue: The employee has received multiple complaints about poor customer service.
Goals:
- Reduce customer complaints to zero within the next 60 days.
- Achieve a customer satisfaction rating of 4.5/5 or higher.
Actions:
- Complete a customer service training course within the next 30 days.
- Shadow a high-performing customer service representative for three days.
- Implement feedback received from weekly quality assurance reviews.
Timeline: 60 days
Success Criteria:
- No customer complaints during the 60-day period.
- A customer satisfaction score of 4.5 or higher on post-call surveys.
Example 3: Project management performance
Issue: The employee consistently misses project deadlines.
Goals:
- Meet 100% of project deadlines for the next three projects.
- Improve project planning skills to identify risks and mitigate delays.
Actions:
- Attend a time management and project planning workshop.
- Use a project management tool to track tasks and deadlines, with weekly updates to the supervisor.
- Develop a risk assessment plan for upcoming projects.
Timeline: Three months
Success Criteria:
- All project deadlines are met for the specified projects.
- Demonstrated ability to anticipate and address potential project risks.
Example 4: Attendance and punctuality
Issue: The employee has a pattern of arriving late or missing work.
Goals:
- Arrive on time for every scheduled shift for the next 90 days.
- Provide advance notice for any planned absences.
Actions:
- Set daily reminders to prepare for the workday.
- Submit a weekly report tracking arrival times.
- Participate in a time management workshop.
Timeline: 90 days
Success Criteria:
- 100% punctual attendance over the 90-day period.
- No unplanned absences without prior approval.
Legal & Ethical Considerations When Developing A Performance Improvement Plan
Navigating employee performance improvement plans can be a complex and intimidating task for both managers and employees.
It's important to ensure that all parties involved are well informed about the expectations, objectives, and rights of the PIP process in order to ensure successful implementation and completion.
When developing a performance improvement plan, it's important to keep some key details in mind, such as:
- Protected classes—ensure that all team members are treated fairly and with respect regardless of race, gender, ethnicity, or any other protected class.
- Country laws—abide by the applicable labor laws of your country when creating and implementing PIPs. Consult with your HR representative and/or corporate counsel.
- Discrimination and harassment—ensure that PIPs do not lead to discrimination or harassment of any employees based on their protected classes.
- Due process—provide team members with appropriate due process when establishing and evaluating progress toward a PIP's objectives.
- Textual documentation—document every stage of the process in writing to ensure there is no misunderstanding between parties involved in the implementation of a PIP.
- Specificity—outline every expectation, objective, and action step in detail while avoiding ambiguity.
- Fairness and consistency—ensure that expectations and objectives are applied fairly across all team members and are consistently monitored within each department or team.
- Rights of appeal—give employees the right to appeal if they disagree with any decisions made regarding their PIPs.
- Adaptability—allow for flexibility within the PIPs to accommodate schedule changes or unforeseen circumstances that may arise during an employee’s performance improvement plan.
- Employee input and feedback—invite feedback from employees during the process of implementing their PIP, as well as after completion to ensure it was effective and achieved desired results.
When devising a performance improvement plan, using tools to enhance your data collection is also essential. Tools like performance management software and time and attendance software can help you manage, analyze, and improve your employees' attendance and overall work performance.
Download our Free Performance Improvement Plan Template
Use our performance improvement plan template when starting to think about a PIP. Remember, don’t use this template without consulting your HR representative or corporate counsel.
Get our Performance Improvement Plan Template!
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