Create an action plan to improve performance: Performance Improvement Plan (PIP)

What we’ll cover
What is a Performance Improvement Plan (PIP)?
A Performance Improvement Plan (PIP) is a formal document used by employers to help employees improve their performance when it falls short of expectations. It outlines the specific areas needing improvement, sets clear goals, and defines a timeline for achieving those objectives. The purpose of a PIP is not only to address deficiencies but also to provide guidance, support, and feedback to help the employee succeed. However, if improvement isn’t achieved, it may serve as a precursor to further disciplinary action, such as termination.
The "Past Issues" section of a Performance Improvement Plan (PIP) outlines the performance deficiencies that led to the need for the plan. This section helps clarify the gap between the actual performance and expectations, offering transparency and setting the stage for focused improvement.
When to use a Performance Improvement Plan (PIP):
- You want to document areas where an employee needs to improve to meet the goals or expectations of their role.
- You want to document conversations and efforts to support an employee’s improvement prior to considering termination.
Performance Improvement Plan (PIP) FAQs
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What should be included in a Performance Improvement Plan?
The details of a Performance Improvement Plan (PIP) may vary depending on the situation, but here are common elements to include:
- The Parties - The name and contact information of both the employee and the supervisor.
- The Purpose of the Performance Improvement Plan - Explain why the PIP is being implemented (e.g., to address specific performance gaps, behavioral concerns, or skill deficiencies).
- Performance Areas of Concern - Describe the specific areas where the employee's performance is not meeting expectations. Include examples if applicable, and list each concern individually.
- Improvement Goals and Expectations - Outline measurable, specific objectives the employee needs to achieve.
- Resources and Support - Detail any support that will be provided, such as training, coaching, or tools that can help the employee succeed.
- The Timeline - Define how long the employee has to make the required improvements.

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