Your Guide to a Performance Improvement Plan

Navigating an underperforming employee is easily one of the trickiest parts of being a manager.

But a well-designed performance improvement plan (PIP) shouldn't feel like a step toward the exit. Think of it as a powerful tool for recovery and growth.

This guide breaks down how to build a PIP that’s fair, effective, and capable of turning a tough spot into a real opportunity.

Why a Performance Improvement Plan Matters

There's a persistent myth that a PIP is just the first step in firing someone. In reality, a good PIP is a structured, supportive process designed to give an employee a clear, documented path back to meeting expectations. Getting this right is a cornerstone of strong employee relations.

For a more modern take on the process, it's also worth seeing how tools like AI for Performance Improvement Plans) are starting to help managers build these frameworks more effectively.

A great PIP really does three critical things:

• Sets Clear Expectations: It cuts through the noise and removes any confusion about what "good performance" actually looks like in their role.
• Provides a Fair Chance: It gives the employee a genuine, structured opportunity to get back on track with clear goals and support.
• Creates Documentation: From a compliance standpoint, it protects the company by demonstrating that a fair, transparent process was followed.

What a Performance Improvement Plan Really Is

Let's clear the air on one of the most misunderstood tools in management: the performance improvement plan, or PIP. The moment it’s mentioned, eyes widen. Employees often hear "you're about to be fired." But that’s a huge misconception.

A well-executed PIP isn't a formality before termination. It’s a rescue mission. Think of it as a focused, high-intensity coaching plan for a skilled professional who's hit a rough patch. It’s a structured, supportive process designed to give someone a clear, documented path back to meeting expectations.

The goal isn't to push someone out the door; it's to bridge a performance gap. When done right, a PIP is a formal commitment from both the manager and the employee to tackle specific challenges head-on. It's a reset button.

When to Implement a Performance Improvement Plan

A PIP should never, ever be a surprise. It’s not the right tool for a one-off mistake or a minor slip-up. You pull out the PIP playbook only when there's a clear pattern of underperformance that informal feedback, coaching, and one-on-ones haven't managed to fix.

This formal step is reserved for recurring, documented issues that are starting to have a real impact on the team or business outcomes.

You should consider a PIP when you see persistent problems like these:

• Consistently Missed Targets: The employee repeatedly fails to meet clearly defined quotas, project deadlines, or other key metrics over several review cycles.
• A Decline in Work Quality: There’s a noticeable and sustained drop in the quality of their work. This isn't just a bad week; it's a trend that's leading to rework, customer complaints, or internal friction.
• Failure to Master Core Job Functions: Despite initial training and ongoing support, the employee just can't get the hang of essential duties outlined in their job description.

A PIP is the logical next step after you've already had multiple documented conversations and coaching sessions that didn't lead to the needed improvement. It sends a clear signal: this is serious, and we need a more structured intervention to get back on track.

One of the biggest reasons to get this right is legal. A consistently and fairly applied PIP can be a strong defense against wrongful termination claims. But it has to be genuine—an actual attempt to help someone improve, not just checking a box before a decision you've already made.

This decision tree breaks down the logic of when a PIP becomes the appropriate next step.

As you can see, the PIP is a final, formal step. It's only meant to be used when informal methods have been tried and the issue keeps recurring.

The True Purpose of a PIP

At its core, a performance improvement plan is a tool for rehabilitation, not punishment. It’s all about creating a shared understanding of the problem and building a collaborative path toward a solution. It provides clarity where there was confusion and structure where there was frustration.

For a PIP to have any chance of success, both the manager and the employee have to be committed to the process. It's a two-way street.

A good PIP always includes these key elements:

1. Defining the Gap: The plan must spell out, in no uncertain terms, the difference between the employee's current performance and the standard that's expected. Use specific, data-driven examples—no vague feedback.
2. Setting Clear Goals: It needs to outline S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, Time-bound) goals. This gives the employee a concrete target to aim for. "Do better" isn't a goal. "Increase your customer satisfaction score from 75% to 90% by the end of the quarter" is.
3. Providing Support: The plan has to detail the resources the company will provide. This could be extra training, weekly one-on-ones, mentorship from a senior colleague, or access to new tools.
4. Establishing a Timeline: It sets a clear duration, usually 30 to 90 days, with scheduled check-ins to monitor progress and provide feedback along the way.

Ultimately, a well-crafted PIP is an investment in an employee. It acknowledges their potential while holding them accountable, offering one last structured opportunity to turn things around.

The Core Components of an Effective PIP

A vague or poorly constructed performance improvement plan is worse than no plan at all. It just creates confusion, fuels resentment, and almost guarantees failure. An effective PIP, on the other hand, is a clear, defensible blueprint for recovery.

The bedrock of any solid PIP is the S.M.A.R.T. goal framework. This isn't just corporate jargon; it’s a time-tested method for turning fuzzy feedback into concrete, actionable objectives. It forces you to move away from unhelpful criticisms like "be more proactive" and toward targets the employee can actually aim for.

Breaking Down S.M.A.R.T. Goals

Each letter in S.M.A.R.T. represents a critical piece of the puzzle. Let's walk through what each one means in the real world of performance management.

• Specific: Goals need to be crystal clear. Instead of "Improve your reporting," a specific goal sounds like, "Submit the weekly sales report every Friday by 4 PM using the company-approved template." There’s no room for misinterpretation there.
• Measurable: How will you both know if they’re succeeding? You need numbers. A measurable version of "Get better at client communication" is "Achieve a minimum client satisfaction score of 90% on all post-project surveys and reduce email response time to under 12 hours."
• Achievable: The goal has to be realistic. Expecting a junior marketer to double organic traffic in 30 days is setting them up for failure. A much better, achievable goal would be to increase it by 15%.
• Relevant: The objective must tie directly to the employee's core job and the team's bigger mission. For an account executive, a relevant goal connects to their role, like improving their pay for performance metrics by increasing their deal closure rate.
• Time-bound: Every goal needs a finish line. A simple phrase like "by the end of the 60-day PIP period" creates a clear timeline and a healthy sense of urgency.

This structured way of thinking is catching on. A recent study found that about 71% of companies now use detailed, formalized performance management processes. This isn't just about ticking boxes. Companies with strong performance strategies are 4.2 times more likely to financially outperform competitors, see 30% higher revenue growth, and experience a 5% drop in attrition.

Articulating Deficiencies and Expectations

A huge part of the PIP document is explaining why it's happening in the first place. You have to clearly outline the performance gaps using objective data and specific, documented examples.

This is not the time for emotional or subjective language. Don't say an employee has a "bad attitude." Instead, describe the behavior: "On three separate occasions during team meetings on [Date 1], [Date 2], and [Date 3], you interrupted colleagues and dismissed their input before they finished speaking."

This section needs to nail down three things:

• The specific performance deficiency: What’s the core problem?
• The expected level of performance: What does success look like?
• The impact of the deficiency: How is this hurting the team, the department, or the company?

Providing Resources and Support

A PIP is a two-way street. It’s not enough to just list problems; you also have to outline the support the company will provide to help the employee turn things around. This shows the plan is a genuine effort to help them succeed, not just a paper trail for termination.

Your plan should detail all the resources available. This could include things like:

• Additional Training: Enrolling them in a specific course or workshop.
• Mentorship: Pairing the employee with a senior team member for guidance.
• Tools and Technology: Giving them access to software or equipment that can help.
• Regular Check-Ins: Setting a fixed schedule of weekly meetings to review progress, talk through roadblocks, and provide coaching.

The most successful performance improvement plans are collaborative. When you involve the employee in setting the goals and figuring out the right support, their buy-in goes through the roof. If they feel like a partner in the process, they're far more likely to be motivated to succeed.

To really see the difference, check out this comparison between vague, unhelpful goals and sharp objectives built with S.M.A.R.T. principles.

Poor vs S.M.A.R.T. PIP Objectives

By building your PIP around these core components, you create a document that is fair, clear, and actually focused on getting someone back on track.

How to Conduct the PIP Meeting with Empathy

The very first meeting to kick off a performance improvement plan is the most important conversation you'll have in the entire process. It sets the tone for everything that follows.

Get it wrong, and the employee might check out before you've even finished the first sentence. But if you handle it with genuine empathy and clarity, you lay the foundation for a real turnaround. This conversation should never feel like an ambush; it's a structured, direct, and supportive dialogue. The goal isn't to make someone feel defeated, but to frame the PIP as a shared roadmap for getting back on track.

Setting the Stage for a Constructive Conversation

Before you even sit down with the employee, you need to prepare. The environment you choose and how ready you are will completely change how your message lands.

• Choose a Private, Neutral Space: Never, ever have this conversation at the employee’s desk or in an open office. Book a private conference room where you absolutely will not be interrupted. A neutral setting helps take the heat off and makes it feel less like they're being singled out.
• Have an HR Representative Present: It's always a best practice to have a neutral third party, like an HR generalist, in a formal PIP meeting. They keep the conversation on track, take notes, and make sure the process is fair and consistent. Our guide offers more detail on the role an HR generalist plays in these tough situations.
• Prepare All Documentation: Have the written PIP document printed and ready, along with any specific examples of the performance issues you've discussed before. Being organized shows you’re taking this seriously and have thought it through.

Delivering the Message with Directness and Empathy

This is where the real skill comes in. You have to be direct about the performance problems while staying human and professional. The conversation has to be about observable behaviors and metrics, not personality or what you think their intentions are.

Your tone should be firm but supportive. Frame the conversation around a shared goal: "We both want you to succeed here, and this plan is designed to help us figure out how to make that happen." This simple shift changes the dynamic from confrontational to collaborative.

Getting this collaborative approach right is a global challenge. Only 30% of employees strongly agree their manager actually involves them in setting goals. Yet, the ones who are involved are 3.6 times more likely to be engaged. It just goes to show how powerful a transparent, partnership-driven PIP discussion can be. You can dig into more performance management trends at Deel.com.

Managing Emotional Reactions

It’s completely normal for an employee to have a strong emotional reaction. They might get defensive, upset, or scared. Your job is to listen, acknowledge their feelings, and then gently steer the conversation back to the facts.

If the employee becomes defensive:

• Stay Calm: Don't get pulled into their frustration. Keep your composure.
• Reiterate the "Why": Gently guide the conversation back to the documented gaps. Try saying something like, "I understand this is tough to hear. Let's walk through the specific examples in the plan so we're on the same page about the expectations."

If the employee becomes quiet or withdrawn:

• Create Space for Questions: Ask open-ended questions like, "What are your initial thoughts on this?" or "Is there anything in this plan that feels unclear to you?"
• Confirm Understanding: Silence doesn't mean they agree. Ask them to summarize the goals and next steps in their own words to make sure the information has sunk in.

The initial meeting is all about building a foundation of trust and clarity. By preparing thoroughly and communicating with empathy, you can turn a potentially negative experience into a constructive starting point for real improvement.

Managing Follow-Up and Tracking Progress

Think of a performance improvement plan as a living, breathing document—not something you can just "set and forget." The initial meeting is only the starting line. The real work, and the real opportunity for change, happens in the consistent, documented follow-up that comes next.

This is where your role shifts from manager to coach. Without regular check-ins, the PIP quickly loses momentum and feels more like a bureaucratic formality than a genuine effort to help someone succeed. It's the follow-up process that makes the plan actionable and shows your organization is truly invested in the employee.

Establishing a Cadence for Check-Ins

Consistency is your best friend here. You need a predictable rhythm for meetings so the employee always knows when they'll have a chance to discuss progress, ask questions, and get feedback. A weekly check-in is the gold standard for a reason.

This regular cadence does two things. First, it stops small issues from snowballing into major roadblocks. Second, it creates mutual accountability, keeping the plan top-of-mind for both you and the employee.

But these meetings need structure to be effective. Each check-in should hit on three core areas:

1. Review Progress Against Goals: Go through the S.M.A.R.T. objectives one by one. Talk about what went well that week and what’s still a struggle.
2. Identify and Discuss Roadblocks: Directly ask what's getting in their way. Is it a lack of resources? A knowledge gap? A broken process?
3. Provide Real-Time Feedback: Offer specific, actionable input on their performance from the past week. Acknowledge improvements and give clear, constructive guidance on where they need to focus next.

The link between regular feedback and retention is surprisingly strong. Employees who feel engaged through frequent reviews are 87% less likely to leave their jobs. Still, only 33% of employees want constant feedback, which underscores the need for a structured, balanced approach—not just random comments.

The Manager's Role as a Coach

Throughout the PIP, your role has to evolve. You’re not just an evaluator anymore; you’re a coach whose goal is to help your team member win. This means offering encouragement, pointing them to the right resources, and actively working to clear any barriers to their success.

This might involve sharing practical tips to increase productivity at work or other helpful materials. A supportive stance can completely change the dynamic, making the PIP feel less like a punishment and more like a collaborative project.

A huge part of this coaching is encouraging self-reflection. Help employees think critically about their own performance by using frameworks from guides with self-evaluation examples.

Meticulous documentation is non-negotiable. After every single check-in, send a brief email summary to the employee and HR, outlining what was discussed, the progress made, and any new action items. This creates an objective, factual record that protects everyone involved.

The Importance of Documentation

Every conversation, every piece of feedback, and every meeting related to the PIP absolutely must be documented. This isn't just about creating a paper trail for legal protection, although that’s a critical benefit. It's also about ensuring fairness and clarity for the employee.

Clear documentation serves as a single source of truth that both of you can refer back to. It cuts through any ambiguity and makes sure expectations are understood consistently throughout the entire process. This factual record is what allows you to make an objective, defensible decision when the PIP period ends, whether that means a successful return to good standing or another outcome.

Legal Considerations and Common Pitfalls to Avoid

When you get to the point of using a performance improvement plan, the stakes are high. Good intentions just aren't enough. You have to be razor-sharp on the legal details to make sure the process is fair for the employee and, frankly, defensible for the company. One wrong move can tank the whole effort, opening you up to legal trouble and shattering employee trust.

From a legal perspective, your best defense is consistency. A PIP needs to be applied the same way across the board, no matter who the employee is or what department they're in. If you put some underperformers on a PIP but not others in similar situations, you’re practically inviting claims of discrimination or unfair treatment.

Keep Your Documentation Objective

Every single part of a PIP, from the first draft to the last check-in, has to be built on objective, data-driven evidence. Subjective language is your enemy here.

Stay away from vague, personal judgments like "not a team player" or "has a bad attitude." Instead, zero in on observable behaviors and measurable results. For example, don't write "poor communication." Document it like this: "Failed to respond to three client emails within the 48-hour window specified in our team's service-level agreement on [Date 1], [Date 2], and [Date 3]."

A PIP is only as strong as its documentation. To be legally defensible, it has to tell a clear, fact-based story: here was the performance gap, here's the support we offered, and here's what the employee did—or didn't do—to improve. No opinions, no bias.

This focus on the facts doesn't just protect the company; it gives the employee concrete, actionable feedback they can actually use to get better.

Common Traps That Can Derail a PIP

Even when you're trying to do the right thing, a few common mistakes can turn a PIP from a constructive tool into a demoralizing formality. Avoiding these is absolutely critical.

• The Surprise PIP: A performance plan should never feel like an ambush. It has to be the last resort after a string of documented coaching sessions and direct feedback haven't fixed the problem. Dropping a PIP on someone out of the blue destroys any trust they might have in you or the process.
• Setting Unreachable Goals: The goals need to be a stretch, but they also have to be realistic. If the objectives are impossible to hit in the given timeframe, the PIP just becomes a paper trail for a termination you've already decided on. That’s a bad look, and it can create serious legal risk.
• Not Providing the Promised Support: A PIP is a two-way street. If the document says you'll provide weekly coaching, extra training, or mentorship, you have to follow through. When a manager doesn't deliver on their end of the bargain, the plan loses all credibility and shows you weren't genuinely trying to help.
• Inconsistent Follow-Up: Constantly canceling or rescheduling check-in meetings sends a clear signal: this isn't a priority. That inconsistency kills the plan's structure and accountability, leaving the employee feeling abandoned. It’s a huge red flag that signals a lack of real commitment.
• Focusing Only on the Negative: Yes, a PIP is about addressing performance gaps, but effective check-ins should also recognize progress, no matter how small. Acknowledging effort keeps the employee engaged and motivated. Ignoring the positives is just plain demoralizing. A related problem is weaponized incompetence, which you can read about in our guide on how to handle weaponized incompetence at work.

Final Pre-PIP Checklist for Managers and HR

Before you pull the trigger on a PIP, run through this final checklist. A few minutes of diligence here ensures the whole process is fair, defensible, and has the best possible shot at actually working.

1. Is there a paper trail of informal feedback? Do you have notes with dates and details from previous conversations about the performance issue?
2. Are the gaps objective and measurable? Have you stripped out all subjective opinions and backed everything up with specific, concrete examples and data?
3. Are the S.M.A.R.T. goals actually achievable? Are the targets realistic for the employee to hit within the timeline? Be honest with yourself.
4. Is the support you're offering real and available? Have you confirmed that the training, resources, or mentorship you promised are ready to go?
5. Has HR given it a final review? Did an HR partner double-check the plan to ensure it’s consistent with company policy and how similar situations were handled in the past?

By respecting these legal guardrails and actively steering clear of the common pitfalls, you can run a performance improvement plan that is not only compliant but genuinely constructive.

Got Questions About PIPs? We’ve Got Answers.

Even with a solid plan in place, performance improvement plans can feel like a tightrope walk. Managers and HR teams often run into tricky situations that require a bit of finesse. Let’s tackle some of the most common questions that pop up.

What if an Employee Refuses to Sign the PIP?

This happens more often than you’d think, but it’s not a roadblock. If an employee won’t sign, the first step is to calmly explain what the signature means: it’s just an acknowledgment that they’ve received the document, not an admission of poor performance.

If they still refuse, no problem. Just make a note on the signature line that says something like, “Employee declined to sign,” and add the date. It’s always a good idea to have the HR rep in the room witness this and sign off on it, too. The PIP is still valid, and you should move forward with it just as you planned.

Is a PIP Just a Fancy Way to Fire Someone?

Absolutely not—or at least, it shouldn’t be. A PIP done right is a genuine attempt to get a struggling employee back on track. Think of it as a rescue mission, not the first step toward termination.

A well-designed PIP is a good-faith effort to give an employee the structure, resources, and clarity they need to turn things around. While termination is a possible outcome if things don’t improve, the goal should always be to retain and develop your people. Viewing it any other way poisons the well and creates a culture of fear.

Can You Put a New Hire on a PIP During Their Probationary Period?

You bet. The whole point of a probationary period is to see if an employee is a good fit for the role and the company. If performance issues crop up early, a PIP is a great way to provide clear, documented feedback.

It gives the new hire a fair shot to correct course before you make a final call on their employment. Plus, it shows your company is committed to a fair process, even for the newest members of the team.

How Long Should a Performance Improvement Plan Last?

There’s no magic number here, but the sweet spot is usually between 30 and 90 days. The right timeline really depends on what needs fixing.

• 30 Days: This is often plenty of time for straightforward issues, like missing deadlines or simple process mistakes.
• 60-90 Days: For more complex behavioral changes or skills that take time to develop, a longer window is much more realistic.

The main thing is to give the employee enough time to actually take in the feedback, make changes, and prove they can sustain the improvement.

Finding and retaining top performers is always the goal. Juicebox uses AI-powered sourcing to help you build high-performing teams from the start, identifying candidates with the right skills and experience to thrive.

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