What is a Performance Improvement Plan?

A Performance Improvement Plan (PIP) is a structured, documented process for addressing sustained performance problems. It is initiated when informal feedback and coaching have not produced the required improvement, and it formally notifies the employee that their performance has reached a level that requires intervention.

A PIP serves two functions simultaneously: it gives the employee a structured opportunity to improve with clear expectations and support, and it creates documented evidence that the organization made a good-faith effort to help the employee succeed before taking further action. Both functions matter — legally and ethically.

What does a PIP include?

An effective PIP contains six elements. As of 2026, both SHRM and employment law firms like Littler Mendelson recommend this structure as the minimum for legal defensibility:

  1. Specific performance issues. Documented examples of the gap between expected and actual performance. Not "your communication needs improvement" but "you have missed three project deadlines (April 5, April 19, May 3) without prior notification."
  2. Clear expectations. Exactly what the employee must do to be considered meeting expectations. These should reference the competency framework or job description.
  3. Measurable targets. Specific, observable metrics or milestones the employee must hit. The test: could a neutral third party look at the evidence and agree whether the target was met?
  4. Timeline. The duration of the PIP — typically 30, 60, or 90 days — with intermediate check-in milestones.
  5. Support and resources. What the organization will provide: additional training, more frequent check-ins, mentoring, reduced workload, or other resources. The PIP must demonstrate genuine support, not just documentation of failure.
  6. Consequences. A clear statement of what happens if the employee does not meet the PIP targets: typically further disciplinary action, role change, or termination.

What is the difference between a PIP and an IDP?

A PIP and an Individual Development Plan (IDP) can look similar on paper — both involve documented goals, learning activities, and timelines. The critical difference is the stakes:

  • An IDP is a proactive, collaborative development tool. It exists to help an already-adequate employee grow. Participation is motivated by career ambition.
  • A PIP is a reactive corrective process. It exists because performance is below the minimum acceptable threshold. It carries the explicit or implicit possibility of termination.

Presenting a PIP as an IDP — or framing it so softly that the employee does not understand the seriousness — is a significant management failure. Employees placed on PIPs must clearly understand that their employment is at risk.

When should you use a PIP?

PIPs are appropriate when:

  • Performance issues have been clearly communicated informally (verbally and in writing) and have persisted over time.
  • The performance gap is a pattern, not an isolated incident.
  • The manager has genuinely attempted to understand and address root causes (unclear expectations, resource gaps, personal challenges) and the core issue remains.
  • The issues are related to performance or behavior — not role fit, team dynamics, or organization-level problems that a PIP cannot solve.

PIPs are not appropriate as a documentation formality before a predetermined termination. If the employment decision has already been made, a PIP used to create a paper trail is legally risky and ethically problematic.

How do you conduct an effective PIP?

  • Involve HR. PIPs should always be developed in partnership with HR before being presented to the employee. HR provides consistency across the organization and reduces legal exposure.
  • Have the conversation first. The employee should not be surprised when formally placed on a PIP. Prior conversations should have established that performance is not meeting expectations.
  • Set up regular check-ins. Weekly or biweekly check-ins during the PIP period give the employee feedback in real time and give the manager documented evidence of engagement or failure to improve.
  • Document everything. Every check-in, every conversation about progress, every piece of evidence of meeting or failing targets should be documented contemporaneously.
  • Honor the process. If the employee meets the PIP targets, that is a success. Acknowledge it explicitly and transition back to the normal performance management process. Moving the goalposts undermines trust and legal standing.

What are the possible PIP outcomes?

PIPs produce one of four outcomes:

  • Successful improvement. The employee meets the targets and returns to standard performance management. This is the goal.
  • Partial improvement. The employee improves in some areas but not all. The organization must decide whether progress is sufficient or whether further action is required.
  • No improvement. The employee fails to meet the PIP targets. This typically leads to termination, with the PIP providing the documented basis.
  • Voluntary resignation. The employee chooses to leave during the PIP process. This is common when the employee recognizes the performance gap is unlikely to close or when they were already considering leaving.