Performance improvement plan: Template, examples, and writing tips

Underperformance presents unique challenges that can impact team dynamics, productivity, and morale. However, with a focused and structured approach, managers can guide employees toward meeting and exceeding expectations. A well-designed performance improvement plan (PIP) provides the clarity, support, and actionable steps needed to turn performance gaps into growth opportunities.

In this article, we explain the essentials of creating effective performance improvement plans, from knowing when to implement them to the specific steps involved, giving you the tools to boost your team’s performance while reinforcing employee engagement and a culture of growth and accountability.

What is a performance improvement plan (PIP)?

A performance improvement plan is a formal document that HR and the employee’s manager create to address specific performance areas needing development. While often used to guide employees struggling to meet current expectations, a PIP also serves as a growth tool for employees looking to advance in their roles. 

By identifying measurable areas for improvement and setting clear, actionable goals, a PIP supports both employees who need additional help and those ready to take their performance to the next level.

As a targeted employee management and performance management tool, a PIP lets the manager track progress through regular performance reviews, providing structured feedback and support. This documented process reinforces accountability and empowers employees to achieve their fullest potential, whether in bridging performance gaps or preparing for greater responsibilities.

When should you use performance improvement plans?

Knowing when to implement a PIP can make a significant difference in guiding employees toward success and growth. This approach is equally important for remote teams as it is for on-site teams, providing structured support and clear expectations to help all employees align with performance goals, no matter where they work:

When an employee shows consistent underperformance

A PIP is essential when an employee repeatedly falls short of meeting their role's performance expectations. With clearly outlined goals and regular check-ins, a PIP provides the structure needed to identify specific areas for improvement and support the employee’s path back to optimal performance.

When an employee has skill gaps that affect their job performance

Skill gaps can sometimes prevent an employee from performing their duties effectively, even when effort is there. A PIP helps to target these areas directly, setting measurable goals and creating opportunities for the employee to build the skills they need to excel in their role.

When an employee wants to advance in their career

PIPs aren’t only for correcting issues. They’re also useful for employees aiming to advance within the company. By outlining targeted objectives and setting a clear timeline, a PIP helps employees focus on the skills and competencies they need to grow, preparing them for future responsibilities and career progression. This structured timeline gives both the employee and manager a roadmap for development, ensuring measurable progress toward career goals.

Benefits and drawbacks of performance improvement plans 

A performance improvement plan can bring valuable benefits for both employers and employees, creating structured opportunities to improve skills and productivity. However, it can also come with certain challenges that HR must navigate effectively to achieve the best outcomes:

3 advantages of performance improvement plans

1. More skilled employees

A PIP outlines clear objectives and actionable steps, helping employees build necessary skills. By following a structured improvement process, employees can close skill gaps and gain confidence in their roles, contributing more effectively to team goals.

2. Improving company culture

A well-executed PIP promotes open communication, consistent feedback, and personal growth. These elements create a supportive culture where employees feel encouraged to improve rather than fear termination, creating a positive and growth-oriented workplace environment, and a higher level of employee engagement. 

3. Increased efficiency and productivity 

Through a PIP, managers can address issues affecting an employee’s performance and provide tailored support. By focusing on specific objectives, employees gain the tools to work more efficiently, directly improving team productivity and meeting performance goals within a clear timeline.

3 challenges of performance improvement plans 

1. Hard conversations with employees

Discussing performance issues with employees requires sensitivity and skill. PIPs often involve difficult conversations that require managers to give honest feedback while remaining constructive, making it a challenging process for both parties.

2. PIP creation can be time-consuming 

Building a PIP involves careful planning and continuous performance review, taking time and resources from both HR and team managers. Setting specific objectives, tracking progress, and providing regular feedback requires a time commitment that can be demanding, especially for larger teams.

3. Increased stress in employees 

Employees placed on a PIP may experience increased stress as they work to meet the improvement plan’s objectives. While PIPs aim to support growth, the pressure to perform within a specific timeline can lead to anxiety and negatively affect an employee’s confidence if not managed carefully.

What should a PIP include?

An effective performance improvement plan sets clear, actionable steps for an employee’s growth and provides both the employee and manager with a roadmap for success. Here are the essential elements that every strong PIP should include:

1. Areas that the employee needs to improve

Clearly outline the specific areas where performance falls short. For example, if an employee struggles with time management, the PIP should highlight specific tasks or responsibilities where delays are causing issues. Rather than saying “improve productivity,” identify the exact task, such as “deliver monthly reports on time” or “complete daily task tracking.” ‘

Identifying these areas ensures a shared understanding of what needs attention.

2. Specific action items for improvement

List concrete steps the employee must take to address each area needing improvement. For instance, if the issue involves communication with team members, a specific action item might be: “Initiate daily check-ins with direct reports to ensure project alignment.” If the goal is to improve technical skills, the action item could be “complete a training course on [relevant software] and apply new knowledge in weekly tasks.” 

Providing clear action items gives employees a tangible way to work toward improvement and demonstrates commitment from both sides.

3. SMART goals

Set goals that are Specific, Measurable, Achievable, Relevant, and Time-bound to provide clarity and motivation. For example, if an employee needs to improve customer response times, a SMART goal might be: “Respond to all client emails within two hours during business hours, achieving a minimum of 90% compliance by the end of the quarter.” 

By setting SMART goals, the PIP establishes a clear endpoint and timeline for improvement, giving the employee a target to work toward.

4. Metrics to measure progress 

Define specific metrics to evaluate the employee’s progress throughout the PIP. For example, if the focus is on accuracy in data entry, track the error rate in weekly reports to see if it decreases over time. If the goal is to increase sales calls, measure the number of calls completed each day or week against the target. 

Establishing these metrics allows the team manager to track the employee’s performance in a quantifiable way, making it easier to assess whether they're meeting expectations.

How to write a performance improvement plan: 5 steps

Creating an effective performance improvement plan requires a structured approach to ensure each step supports clear, measurable outcomes. Reviewing performance improvement plan examples can be a helpful first step, giving HR managers insights into setting realistic goals, defining specific action steps, and identifying key metrics for tracking progress. 

Here’s a step-by-step guide to writing a PIP that promotes accountability and growth:

Step 1. Get insights on employee’s performance 

Begin by collecting detailed performance information. Review past performance evaluations, project outcomes, attendance records, and any feedback from team members or customers. For example, if the employee has received feedback about incomplete work, look for trends in their project submissions or deadlines missed. 

This step helps HR and managers understand the specific areas that need addressing and sets a strong foundation for the PIP.

Step 2. Meet with employee manager for a comprehensive review

Hold a meeting with the employee’s manager to get first-hand insights into the performance issues. Discuss specific examples of underperformance, skill gaps, or behavior concerns. For instance, if the employee has been falling behind in project timelines, ask the manager for data on missed deadlines or delayed tasks. 

This collaborative approach aligns both HR and the manager on the goals and objectives of the PIP.

Step 3. Use a PIP template 

Choose or create a performance improvement plan template that outlines each section of the improvement plan, including performance areas, objectives, action steps, metrics, and check-in dates. For instance, the template should have dedicated fields for defining “Areas for Improvement” and “SMART Goals,” which guide both the employee and manager through the document. 

A clear template keeps the PIP organized and ensures no important components are overlooked.

Step 4. Design a plan for improvement

Work with the manager to create a detailed plan that combines specific actions with measurable goals, and set a schedule for regular updates to ensure consistent progress tracking. For each area needing improvement, identify actionable steps the employee should take. For instance, if communication with team members is an area of concern, include actions like “participate in a weekly team huddle” or “send a daily update email summarizing key project developments.”

Then, establish measurable goals that provide direction. If the employee needs to improve customer service response times, set a goal such as, “Respond to all customer inquiries within one business day, achieving a 90% on-time response rate by the end of the quarter.” Combining action steps with clear, measurable goals gives the employee a concrete roadmap to follow and ensures that the PIP tracks tangible improvements.

Step 5. Implement plan and conduct regular check-ins

Begin implementing the PIP with the scheduled check-ins to monitor progress and provide feedback. Weekly or bi-weekly check-ins allow the manager to address any emerging challenges and ensure the employee remains engaged. For instance, if a sales employee is working on outreach targets, the manager can review weekly call numbers and discuss strategies for improving conversion rates. These regular updates keep the improvement process dynamic, offering consistent opportunities for both reflection and course correction.

During each check-in, provide specific, constructive feedback based on observed progress. Highlight achievements with concrete examples, such as, “Your response time for customer emails has improved by 20%,” to reinforce positive behavior. If issues persist, openly discuss these areas and adjust the plan as necessary, incorporating new steps or strategies to support growth. Document each outcome and any adjustments to maintain a transparent record, ensuring accurate evaluation of the employee’s overall progress by the end of the PIP.

Performance improvement plan template and examples

Here’s a sample template to guide your performance improvement plan process:

3 PIP use cases

Use cases for performance improvement plans highlight common scenarios, where targeted support can help employees meet expectations and reach their potential. Here are a few examples of when implementing a PIP can make a significant impact:

1. Poor attendance

When an employee’s frequent unplanned absences disrupt team productivity and create strain on their colleagues, it becomes essential to address the issue directly. A PIP can help by setting clear attendance goals, establishing accountability, and offering resources to support the employee in meeting attendance expectations.

2. Poor customer service

Repeated client complaints about response times or lack of resolution highlight an area of concern in customer interactions. A PIP can guide the employee in improving communication skills, setting clear response time goals, and following structured follow-up practices, ultimately enhancing client satisfaction and trust.

3. Preparing for career advancement

An employee with leadership potential may lack certain skills or experience needed to take on a higher role. A PIP helps by providing a structured plan to develop the specific competencies required, enabling the employee to gain the experience and confidence they need to succeed in a future leadership position.

4 performance improvement plan best practices 

Implementing a performance improvement plan effectively requires a thoughtful approach that emphasizes employee involvement, regular feedback, progress tracking, and recognizing achievements. Here are key best practices to consider:

1. Involve the employee in the process

Engaging the employee in creating their PIP fosters a sense of ownership and commitment. Start by holding a collaborative meeting to discuss the specific areas for improvement and invite the employee to share their perspective on challenges or barriers they face.

For example, if the employee struggles with meeting deadlines, ask them to identify factors contributing to this issue and encourage them to propose action steps they believe would help. This involvement shows respect for the employee’s input and ensures the plan reflects realistic and mutually agreed-upon goals.

2. Provide regular feedback

Consistent, constructive feedback keeps the PIP on track and helps the employee stay motivated. Effective feedback should be specific, focused on behavior rather than personality, and actionable.

For example, instead of saying, “Your work lacks organization,” offer specific guidance like, “Try organizing tasks by priority each morning, which may help you complete projects more efficiently.” Follow-up feedback should highlight any positive changes noticed and provide guidance on the remaining challenges. By keeping feedback targeted and solution-oriented, HR managers reinforce positive behaviors and help employees make real improvements.

3. Keep track of progress and performance

Tracking progress systematically ensures that everyone remains aligned with the PIP goals. Use measurable metrics, such as project completion times or customer satisfaction scores, to monitor how the employee performs relative to their objectives.

For instance, if the goal is to improve response times in customer service, record and review weekly response data to ensure progress. Regular check-ins with documented updates allow managers and employees to see tangible improvements and adjust the plan if necessary.

4. Recognize success 

Recognizing the employee’s achievements as they progress through the PIP reinforces positive behavior and builds confidence. Acknowledgement can take many forms, from a simple “Great job on completing your tasks ahead of schedule this week” to a more formal recognition in team meetings or an email to company leadership.

Specific praise for meeting or exceeding targets, like “Your response time has improved by 25%, and we’re seeing positive feedback from clients,” validates the employee’s efforts and motivates them to continue improving.

Rippling: Data-driven performance management

Rippling, a comprehensive all-in-one HR platform built on a single source of truth, simplifies the management of essential HR functions, including automated, end-to-end performance management. With Rippling, HR teams can seamlessly track, manage, and optimize employee performance, supporting data-driven decisions and enabling a transparent and goal-oriented workplace.

Rippling’s performance management capabilities cover every step of the process. 

Managers can set clear, measurable objectives that align individual efforts with broader company goals, ensuring that employees understand how their contributions impact the organization. Rippling allows for fully customizable review cycles, which enable structured feedback collection, providing a holistic view of each employee’s performance and areas for growth. The platform's custom reporting enables HR teams to generate insights tailored to specific needs, making it easy to track performance trends and measure progress.

From goal-setting to compensation management and beyond, Rippling empowers HR teams to foster a culture of accountability, recognition, and development—all in one place. 

Performance improvement plan FAQs

Does PIP lead to termination?

A performance improvement plan doesn't automatically lead to termination. Instead, HR teams use a PIP as a structured approach to help employees improve work performance. A well-designed action plan offers clear, measurable goals, providing the employee with an opportunity to address and overcome performance issues. 

Termination may be a potential outcome if the employee doesn't meet the goals outlined in the PIP, but the primary purpose is to offer support and give the employee a chance to succeed.

What happens if an employee does not improve during the PIP period?

If an employee doesn't show improvement in their work performance within the PIP period, HR and management may consider further action based on the PIP’s objectives and the company’s policies. This could include reassignment, an extension of the PIP with adjusted goals, or, in some cases, termination. However, HR teams should carefully review the performance review data and the employee’s progress before making any final decisions.

How often should I review progress during a PIP?

It's important to review progress consistently throughout a PIP (performance improvement plan) to ensure that both the employee and manager stay aligned with goals. Regular check-ins, often weekly or bi-weekly, allow HR and managers to provide ongoing feedback, address any barriers to improvement, and adjust the action plan if needed. 

These structured reviews play a crucial role in motivating the employee to improve performance and achieve the goals set in the PIP.

How long does a performance improvement plan go for?

A performance improvement plan typically lasts between 30 to 90 days, depending on the goals outlined in the action plan and the specific areas requiring improvement. The exact length of a PIP may vary based on the complexity of the goals and whether the employee is underperforming in certain tasks or simply aiming to develop skills for career advancement. 

In all cases, the PIP timeline should provide enough time for the employee to implement changes, demonstrate improvement, and achieve the action plan’s goals effectively.

How does a performance improvement plan work?

A performance improvement plan works by tapping into the psychology of goal setting, accountability, and structured support to drive positive behavior change. By clearly defining areas of improvement and setting measurable goals, a PIP helps employees shift their focus from perceived failure to achievable, step-by-step progress. This method leverages the concept of incremental gains, which is shown to boost motivation and reduce feelings of overwhelm.

This blog is based on information available to Rippling as of November 1, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.