Christine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current event.
Christine Organ ContributorChristine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current event.
Written By Christine Organ ContributorChristine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current event.
Christine Organ ContributorChristine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current event.
Contributor Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Updated: Jul 9, 2024, 8:23am
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A performance improvement plan can provide clear expectations for improvement and consequences if the employee does not meet the performance expectations. For example, if an employee receives a poor performance review or struggles to meet expectations for their role, an employer may want to provide clear criteria for improvement. Conversely, if an employee is seeking a promotion, a performance improvement plan can provide benchmarks for advancement.
A performance improvement plan, or PIP, is a written document that identifies how an employee is falling short of expectations and what needs to be done to improve (and stay employed). The PIP may refer to job-specific skills that are substandard or “soft skills,” such as leadership and professionalism, where the employee is falling short. Additionally, a performance improvement plan may also be used if the employee is performing well but wants to advance to a new position.
The employee’s supervisor typically prepares the performance improvement plan and submits it to HR. It should include a specific deadline for meeting the expectations listed in the PIP and consequences or next steps if the employee doesn’t meet the standards.
Employees thrive when they know their expectations and are held accountable for their performance. Performance improvement plans can reinforce a positive company culture, where employees know they will be supported if they are struggling or need more guidance to progress in their career.
Moreover, by focusing on the positive—what it takes to improve—rather than criticizing the negative, a PIP can alleviate feelings of defensiveness.
When managers take the time to prepare a PIP and outline the specific areas for improvement or steps for advancement, employees feel cared for and supported. In addition, the PIP shows employees that managers are willing to take the time necessary to provide direct feedback and guidance instead of leaving it up to the employees to draw their own conclusions.
It takes considerable time and money to go through the hiring process and onboarding of a new employee. For this reason, employers may want to offer underperforming employees a chance to improve performance rather than terminating them. This can be especially true if the employee has strong “soft skills”—such as friendliness, patience and a good attitude—but needs help with specific work-related skills, such as learning to use new technology.
Writing the performance improvement plan and handing it to the employee isn’t enough. Managers should discuss the PIP with the employee, answer any questions and address any concerns. Unfortunately, PIP conversations are often complicated, and even when PIPs take a positive tone (which they should, as much as possible), it can be hard to give and receive feedback.
It takes the manager time to create the PIP and discuss it with the employee, and the follow-up evaluations and discussions also take time.
Even if the manager clearly explains the reasons for the performance improvement plan—whether it’s because the employee is struggling or wants to advance—there is a risk that the employee will misinterpret the PIP as a sign that termination is on the horizon.
The process of creating a performance improvement plan does not have to be complicated. In short, start by first determining whether a PIP is the best course of action for your employee and business. If so, create a plan and meet with the employee to share the plan, before then giving your employee time before accessing their improvement over a set period of time, typically within anywhere from 30 to 120 days, depending on the role.
Here’s how to create a performance improvement plan (PIP) in five steps:
PIPs are appropriate for every situation. If, for instance, an employee is creating a toxic work environment and negatively affecting other employees, termination may be necessary. On the other hand, if an employee’s challenges are relatively minor, an informal conversation may be more appropriate.
Before creating a performance improvement plan, a manager should develop a plan. What would a successful performance improvement plan include? How would success for the employee look? How will the employee interpret and respond to the performance improvement plan? The manager should consider these questions, determine whether the company has used PIPs in the past and devise an implementation plan.
Once the manager has a plan, the PIP should be discussed with the company’s HR department, if there is one. The HR department may have sample PIPs that the manager can use as a template and can guide the manager in PIP creation and implementation. The HR department will also maintain copies of the PIP and track the employee’s progress (or lack thereof).
A successful PIP includes a discussion between the manager and employee (and sometimes an HR rep). Without a conversation, an employee can easily misinterpret a performance improvement plan or make misassumptions about the PIP. By having a conversation with the employee, the manager can provide context for the improvements outlined and answer any questions the employee might have.
A performance improvement plan is only as good as its accountability. If the improvements and consequences of the plan aren’t followed, it defeats the purpose of the PIP and tells employees that they don’t need to take PIPs seriously.
Typically, performance improvement plans are monitored and have milestones at 30, 60 and 90 days. The amount of time provided is generally in relation to the role, and it should provide a realistic amount of time for the employee to improve. Businesses generally are looking to see an improvement by 90 to 120 days, otherwise, performance is unlikely to improve.
If the employee fails to meet the criteria listed in the PIP, the manager will need to decide on next steps. Ideally, the PIP includes a range of consequences, so there is some level of flexibility. Still, ultimately, the manager—perhaps in conjunction with HR—will need to decide whether it’s worth the time and effort to keep working with the employee.
Performance improvement plans can be an effective management tool—if they are used in the right way and under the right circumstances. Businesses typically use them as a tool to help staff understand that they are not meeting the expectations of the role, and to give them a path to improving. For employers, it serves to help retain staff, and for employees, it provides the opportunity to understand and overcome their shortcomings within the role.
If you receive a performance improvement plan as an employee, try to avoid being defensive or jumping to conclusions. Instead, have an honest conversation with your manager about the reasons for the performance improvement plan and how you can achieve the desired results. It is ultimately a sign that your employer values your role at the company.
Performance improvement plans typically have milestones at 30, 60 and 90 days. If there is no improvement by 90 to 120 days, it is unlikely to happen.
Conducting performance reviews every 6-12 months is the standard practice. Initiate performance for new and entry-level candidates sooner, such as after three and six months, as part of their onboarding. Schedule reviews of other team members less regularly (unless there are issues with their performance).
