Performance Improvement Plans (PIPs): How to Write and Run a Fair Plan

A performance improvement plan is one of the most sensitive tools in a manager’s kit. Done well, it gives a struggling employee clarity and support at a point where informal feedback has not worked. Done badly, it destroys trust, demotivates the team and creates legal risk. This guide explains when to use a PIP, how to diagnose the real problem, how to write measurable goals, what support to provide, how to run review meetings, how to close the plan and the legal points to watch.

What is a performance improvement plan?

A performance improvement plan is a formal document and process that sets out an employee’s performance shortfalls, the specific standards they need to meet, the support the organisation will provide, how progress will be measured and the timeline for improvement. It is usually part of a wider performance management or capability procedure.

A PIP sits between everyday feedback and formal disciplinary or capability action. Most performance concerns should be resolved earlier through clear expectations, regular one-to-ones and constructive feedback — see our guides on giving effective feedback and effective one-on-one meetings. A PIP is appropriate when those steps have not worked and the gap is significant enough to affect results, colleagues or customers. Our broader article on managing underperformance covers the earlier stages.

When should a manager use a PIP?

Use a PIP when performance has fallen clearly below expected standards for a sustained period, the employee has already received specific feedback and informal support, and the gap can be measured. Do not use a PIP for one-off mistakes, for conduct issues that belong in a disciplinary process, or as a disguised way to push someone out.

Before starting, check three things. First, have expectations been clearly communicated, ideally in writing? Second, has the employee had the tools, training and time a reasonable person would need? Third, is there evidence of the gap — missed targets, quality errors, customer complaints, observed behaviour — rather than general impressions? If any answer is no, fix that first. A PIP built on unclear expectations is unfair and unlikely to work.

How do you diagnose the cause of underperformance?

Underperformance usually has one of several causes: unclear expectations, lack of skills or knowledge, insufficient resources or support, low motivation or engagement, poor role fit, personal or health issues, or problems in the team or management. Identifying the cause determines what the plan should contain.

Ask open questions in a private conversation: “How do you feel the role is going?”, “What’s getting in the way?”, “What would help most?” Listen carefully. If health, disability or caring responsibilities emerge, involve HR before proceeding: many jurisdictions require reasonable adjustments, and a PIP that ignores them creates significant legal risk.

What should a PIP document include?

A PIP document should include the specific performance concerns with examples, the expected standard for each, measurable goals, the support and resources provided, the review schedule, the duration of the plan, the possible outcomes and a space for the employee’s comments and signature acknowledging receipt.

• Background: previous feedback and support already given, with dates.
• Performance gaps: two to four specific areas, each with concrete examples.
• Required standards: what “good” looks like, in measurable terms.
• Support: training, coaching, tools, adjusted workload, mentor — whatever the diagnosis suggests.
• Reviews: dates for regular check-ins and the final review.
• Outcomes: what happens if standards are met, partially met or not met, in line with company policy.

How do you write measurable PIP goals?

Write goals that are specific, measurable, achievable within the timeframe, relevant to the role and time-bound. Describe the standard expected from any competent person in the role, not an exceptional performer. Where possible, use objective measures such as output, quality, deadlines or customer metrics, supported by observable behaviours.

Goals should reflect the same expectations applied to colleagues in similar roles. Setting a higher bar for the employee on a PIP than for peers is unfair and can be evidence that the process was designed to fail. Our guide to setting goals and OKRs explains how to write clear goals more generally.

How long should a PIP last?

Most PIPs last between 30 and 90 days, depending on the nature of the role and the gaps. The period must be long enough for the employee to realistically demonstrate improvement — for example, a full sales cycle or several reporting cycles — and short enough to keep focus.

Roles with fast feedback loops, such as customer service or administrative work, may suit shorter plans. Roles where results take time, such as complex sales, engineering projects or management, usually need longer. Avoid extending repeatedly without a clear reason; if progress is good but incomplete, a single extension with specific remaining goals is reasonable.

How should PIP review meetings be run?

Hold regular check-ins — weekly or every two weeks — to review progress against each goal with evidence, acknowledge improvements, discuss remaining gaps, confirm what support has been provided and agree next steps. Record a short written summary of each meeting and share it with the employee.

Keep the tone constructive. The purpose is improvement, not building a case. Recognise genuine progress specifically (“Your error rate dropped from 6% to 3% this month — that’s real progress”). Where progress is lacking, be clear and calm about the gap and ask what is getting in the way. Consistent, honest reviews protect both the employee and the organisation, and they are exactly what courts and tribunals look for if a decision is later challenged.

What happens at the end of a PIP?

At the end of the plan, hold a final review. If the employee meets the standards, confirm this in writing and return to normal performance management, with continued feedback. If progress is substantial but incomplete, consider a short extension. If there is little or no improvement despite support, follow the next step in your capability or disciplinary procedure.

Next steps may include redeployment to a more suitable role, a formal warning or, ultimately, dismissal, depending on company policy and local law. Before any termination, follow a fair process as described in our guide on terminating an employee legally. Many PIPs end in success: with clear goals and real support, a significant share of employees improve and remain valuable team members.

How should a manager open the PIP conversation?

Open the PIP in a private meeting, ideally with HR present or briefed. Explain clearly and calmly that performance has not reached the required standard despite earlier feedback, that the purpose of the plan is to help the employee succeed, and what the plan contains. Give the employee time to read it, ask questions and respond.

Expect emotion. Many employees feel shocked or defensive, even when concerns have been raised before. Acknowledge the feelings, avoid arguing about every detail in the first meeting and offer a follow-up conversation once they have had time to reflect. Make clear what support is available, including any employee assistance programme. A respectful opening sets the tone for the whole plan and makes success more likely.

How do PIPs affect the rest of the team?

A PIP is confidential, but its effects are visible: changed responsibilities, extra coaching, or tension in the team. Managers should keep details private, maintain normal treatment of the employee in team settings and avoid discussing the plan with colleagues. Visible fairness reassures the team that performance issues are handled properly.

Unaddressed underperformance often frustrates high performers who pick up extra work. Handling issues promptly through clear feedback and, where necessary, a fair PIP shows the team that standards matter. At the same time, a respectful process signals that people who struggle will be supported, which strengthens psychological safety.

Document the support you provide as carefully as the gaps. Records of training arranged, coaching sessions held and workload adjustments made show that the plan was a genuine opportunity, which matters for both fairness and legal defensibility.

Keep all records factual and dated.

Share copies of meeting notes with the employee promptly so that both sides have the same record and misunderstandings can be corrected early.

Frequently Asked Questions