If an employee isn’t doing their job well, it’s a tough situation. Trust me, I’ve been there as a coach. You’ll need to have a direct conversation with them about what’s going on and why.
These talks can feel awkward, but they’re necessary—especially if the performance issues are hurting the rest of the team or the entire business.
Here’s what I recommend: consider starting a performance improvement plan, or PIP. A PIP is a simple tool to tackle the problem head-on. It’s not about punishment—it’s about helping the employee improve. It gives them clear steps to get better and shows you’re invested in their success.
What is PIP?
A performance improvement plan (PIP) is a tool to help employees who aren’t meeting work goals. It explains where they need to improve, points out skill gaps or training needs, and sets clear goals for the future.
Employees must meet these goals by a deadline. If they don’t, it could lead to actions like losing their job. HR works with the employee’s manager to decide if a PIP is needed. They also guide both the manager and employee while the plan is in place.
When Should a Performance Improvement Plan be Implemented?
There are many reasons you might put an employee on a performance improvement plan. A PIP means that the employee gets a second chance.
It’s important to know this doesn’t always mean they aren’t trying or working hard. Sometimes, the problem might be that the employee wasn’t given proper training or didn’t get a good introduction to part of the job. Other times, they might be coming back after a long time away from work.
As an employer, it’s your job to figure out what’s causing the performance issues and help fix them.
4 Elements of a Performance Improvement Plan
1. Spotting Performance Problems
The first step in creating a Performance Improvement Plan (PIP) is to find the specific areas where someone is struggling. This could include missing deadlines, not following company rules, or having trouble working with others.
To get a clear picture, managers look at the employee’s work carefully. They also ask for feedback from coworkers, supervisors, or even customers when needed. It’s important to stick to facts, like how often deadlines were missed, rather than opinions. This helps keep things fair and clear.
2. Setting Clear Goals
Once the issues are clear, the next step is to set specific goals for improvement. The goals should be simple, clear, and measurable. One tool for this is the SMART framework, which stands for Specific, Measurable, Achievable, Relevant, and Time-bound.
One of my clients had trouble finishing projects on time. We set a SMART goal— “Complete weekly reports by Friday at 4 PM for the next six weeks.” This gave them a clear deadline to work toward and made it easy to track progress.
Tying these goals to company objectives, like improving teamwork or boosting sales, helps employees see why their work matters. It also keeps them focused.
3. Having a Clear Timeline
Without a timeline, it can be tough to stay on track. Timelines give clarity—when to improve, what to focus on. Maybe weekly check-ins? They’re great for progress, spotting issues early, and answering questions. Deadlines? They’re not perfect, but they keep everyone moving forward. It’s all about structure, even if it’s a bit messy sometimes.
4. Giving Feedback
Feedback makes or breaks a PIP. Are you checking in often enough? These moments matter—time to talk, adjust, and figure out what’s working (or not).
Maybe they’re nailing one goal but stuck on another. That’s okay. Rethink, recalibrate. Progress isn’t perfect, but those honest chats? They build trust. Improvement isn’t instant, but it starts here.
Create a Performance Improvement Plan in 8 Simple Steps
Designing and using a Performance Improvement Plan (PIP) takes careful planning and clear communication. Here’s how to create one step by step:
1. Decide if a PIP is the Right Choice
Before starting, make sure a PIP fits the situation. Check if the performance issues can actually be fixed. Ask yourself: Is the employee willing to improve? If the problem comes from personal challenges or lack of support, focus on solving those first.
2. Set SMART Goals
After reviewing the problem, create SMART goals. These are goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. Make sure each goal matches the employee’s job and any struggles they’re facing.
Break big goals into smaller steps so they feel manageable. For example, if an employee needs to be more productive, set a weekly task target to help them improve.
3. Offer Support and Tools
No one can improve without the right support. That’s why a PIP should include helpful tools and resources.
This could mean giving the employee access to training programs, one on one coaching, or even just better equipment. For example, if someone is struggling with presentations, signing them up for a public speaking workshop could help build their confidence.
When employers provide support, it shows they want the employee to succeed. It also makes the PIP process feel less stressful and more like a team effort.
4. Create a Draft Plan
Look at examples or templates of PIPs to guide you. Write down the problems, measurable goals, and a timeline. Add specific actions, like training sessions or mentorship, that can help the employee succeed.
5. Review the Plan
Double-check the plan to make sure it’s fair and realistic. Ask yourself:
- Are the problems clear and backed up with examples?
- Are the goals doable and the timelines reasonable?
- Does the employee have the tools and training they need to improve?
If the employee didn’t get enough help before, like proper training when they started, fix that now.
6. Share and Start the Plan
The manager sits down with the employee. They go over the PIP—what’s expected, what needs work. Simple, right? But here’s the thing: it’s not just about critiquing. It’s about support. Questions? Feedback? Bring it on. Adjust if needed. Once it’s clear, they both sign. HR signs off, too. Imperfect process, but it works.
7. Check Progress Regularly
Plan regular check-ins to see how the employee is doing. These meetings are a chance to guide, adjust the plan if needed, and show continued support. They keep things on track.
8. Review the Results
At the end of the PIP, conduct a performance review. Compare the employee’s recent performance to the goals. Celebrate their wins and acknowledge their hard work. If some areas still need improvement, offer more help or extend the PIP.
If there’s no improvement despite everyone’s best efforts, it might be time to reassign their role or, as a last option, end their employment. Handle this step with understanding and respect.
What Goals Should You Include in a Performance Improvement Plan?
SMART goals have been around since 1981, and they’re a great way to set clear, effective goals for all kinds of things—projects, personal growth, and even employee performance.
As a business coach, I use this method a lot because it works. SMART stands for Specific, Measurable, Achievable, Realistic, and Time-bound. Let me break it down for you:
Specific
Think about it—what really needs to change? Missing deadlines? Sloppy work? Goals not met? When expectations are crystal clear, it’s easier to focus. Without that clarity, how can anyone improve?
Measurable
Goals need to be trackable. For example, you could say, “You need to reach a 95% accuracy rate in your reports” or “Complete tasks within a set time.” This way, progress is easy to see—for both the employee and their manager.
Achievable
Who’s doing what, and when? Set goals tied to their role. Address performance gaps thoughtfully. It’s not about perfection—just fairness. Overwhelming plans? Nobody wins with those, right? Keep it balanced.
Realistic
Set realistic goals. Why aim for perfection? It’s about progress, not flawless results. Too high a bar? They’ll quit before trying. Improvement matters most, right? Too much pressure often means falling short.
Time-bound
Put a timeline on it. Start dates, end dates, and even smaller checkpoints along the way. A clear deadline helps keep things on track and adds just the right amount of urgency.
SMART goals keep everything simple and focused. It’s a system that helps employees succeed without feeling lost or confused. And trust me, when goals are clear and fair, everyone wins.
6 Situations Where a PIP May Not Be Appropriate
While Performance Improvement Plans (PIPs) can help fix some issues, they aren’t always the right fix. Here are six cases where a PIP isn’t the best choice.
- Misconduct – PIPs don’t work for serious behaviour problems like theft, harassment, or violence.
Why? These actions break company rules and ethics. They need immediate discipline, not coaching. - No chance of improvement – If someone clearly doesn’t have the skills or ability to do the job, even after training, a PIP won’t help.
Why? If they’ve already been given help and still can’t meet expectations, it might be time to consider reassignment or letting them go. - Safety risks or urgent problems – When an employee’s actions are putting safety or important work at risk, act fast. Why? Safety and critical operations are top priorities. A PIP is too slow for these situations.
- Probation periods – Employees in their probation period are still being evaluated to see if they’re a good fit.
Why? Probation is a trial period. Struggling during this time might mean they’re not the right match for the role. - Repeated failures after PIPs – If an employee has already gone through one or more PIPs with no real improvement, another one won’t help.
Why? If they can’t improve performance levels after multiple chances, it’s time to consider other options like reassignment or termination. - Wrong role for their skills – If someone’s abilities don’t match the job, no amount of training will fix it.
Why? The problem isn’t performance—it’s that the role doesn’t fit their skills. A PIP won’t solve that.
Benefits of PIP
Culture of Accountability
A performance improvement plan (PIP) helps employees grow instead of just firing them for mistakes or low performance. When workers see their company is willing to help them improve, they feel more connected and motivated. A PIP gives employees clear steps to get better, while managers can build a team that performs better overall.
Save Time and Money
A PIP isn’t perfect, but it works. Why? It gets employees to focus, maybe because it feels real—not like those once-a-year reviews people forget. Sure, it’s tough, but it’s also a second chance. And who doesn’t deserve that? Less quitting, fewer firings. It saves money, avoids drama, and keeps the workplace from spiralling into negativity.
Reduce Liability
A PIP creates a formal record showing the company is not happy with an employee’s performance. If someone claims they were fired unfairly, this document helps protect the company. But because of this, employees sometimes feel nervous about getting a PIP.
A Performance Improvement Plan Can Enhance Employee Performance
Helping people do their best at work isn’t always easy, but it’s important. Performance management tools, like PIPs (Performance Improvement Plans), can make a big difference. When we set clear goals and give employees the support they need, they get better at their jobs. Teams work better too.
I once worked with a manager who struggled with an underperforming employee. We created a simple plan: clear goals, regular check-ins, and honest feedback. Within a few months, the employee not only met the goals but started exceeding them. It showed how much clear expectations and support can help.
When everyone knows what’s expected and feels supported, it builds a culture where people want to do great work. Employees see that doing their best matters—and that they won’t be left alone to figure it out.
FAQs
What is the performance improvement plan success rate?
We don’t have a lot of research on how often performance improvement plans (PIPs) work, but there’s some good news. A study found that 74% of people say performance management systems work well when managers give solid coaching and feedback. This helps set up PIPs for success.
How can feedback from the performance appraisal guide the PIP?
Feedback for a PIP should be clear and easy to understand. No confusing words or vague ideas. Set specific goals that the employee can achieve. Explain exactly what’s expected and how they can meet those goals. Offer support, tools, and a timeline to help them succeed.
Can employees write their own PIP?
Employees usually don’t write their own PIPs, but they can help out. They might suggest goals or share what kind of support they need. It’s a team effort between the employee and their manager.
What happens if an employee fails a PIP?
If someone doesn’t meet their PIP goals, the manager might extend the plan, change their tasks, or, in serious cases, let them go.
