What Is a Performance Improvement Plan (PIP)?
A Performance Improvement Plan (PIP) is a structured document that outlines specific steps an employee must take to improve performance within a defined period. It clarifies expectations, provides support, and establishes a timeline for improvement.
The purpose is not punishment. When designed properly, a PIP is a development tool that gives employees a fair chance to succeed while protecting the organization with clear documentation.
👉 To analyze performance before drafting a PIP, try my Situational Leadership & Skill Will Matrix Tool, which helps managers identify whether an issue is skill-related, motivation-related, or both.
When Should a PIP Be Used?
A PIP is most effective when underperformance is consistent and specific, not occasional or minor. Managers typically use a PIP when:
- An employee fails to meet key objectives over time.
- Skills are lacking despite prior coaching.
- Behavioral issues affect productivity or teamwork.
However, a PIP should not be the first step. Coaching, feedback, and informal support should come first. A PIP is appropriate when those measures have not worked.
According to the Society for Human Resource Management (SHRM), well-structured PIPs can boost engagement by framing improvement as collaboration rather than discipline.
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7 Powerful Lessons from Using a PIP
1. Clarity Is the Foundation
Ambiguity ruins a PIP. Employees must understand exactly which behaviors or results must change, and how improvement will be measured.
2. Objectives Must Be Specific and Measurable
Vague goals such as “improve communication” are ineffective. Instead, state “submit weekly project updates by Friday noon.” Measurable goals make progress visible.
3. Support Matters as Much as Accountability
A PIP is not a checklist for termination. It should include resources, coaching, or training to help employees succeed. Support signals fairness.
4. Regular Check-Ins Prevent Surprises
Waiting until the end of a 90-day plan to evaluate progress sets employees up for failure. Weekly or biweekly reviews allow course correction.
5. Not All Employees Will Succeed
Some employees will improve, others will not. The value of a PIP is clarity: both sides know whether the role is a fit. Either outcome is better than ongoing uncertainty.
6. Documentation Protects Everyone
A written record of goals, timelines, and reviews protects both employee and employer. It ensures transparency and provides evidence of fairness.
7. PIPs Build Trust When Framed as Development, Not Punishment
Employees often fear that a PIP means dismissal. Leaders who position it as an investment in growth increase the chances of success and maintain morale.
👉 To see how structured frameworks improve performance beyond PIPs, explore my Marketing Fundamentals Course.
Case Study: Implementing a PIP in a Pharma Marketing Team
A mid-level marketer in a pharma company consistently missed campaign deadlines. Coaching and reminders did not solve the issue. A PIP was introduced with three goals:
- Submit campaign briefs two weeks before launch.
- Provide weekly progress reports.
- Complete project management training within 30 days.
With regular check-ins and support from a mentor, performance improved within two months. The employee gained structure, the team regained reliability, and the company avoided replacing valuable talent.
The lesson: when framed as development, a PIP can save both careers and resources.
🔗 Related Post: 8 Powerful Lessons from Situational Leadership in 2025
How to Create an Effective PIP (Step by Step)
- Define the performance gap. Be specific about what is not working.
- Write measurable goals. State what success looks like.
- Set a timeline. Typically 30–90 days.
- Provide resources. Offer training, mentoring, or tools.
- Monitor progress. Hold regular check-ins.
- Evaluate outcome. Decide if goals are met, partially met, or unmet.
🔗 Related Post: 7 Proven Strategies for Effective Pharmacist Engagement in Pharmaceutical Marketing
FAQs
What is a PIP in HR?
It is a Performance Improvement Plan—a formal document outlining how an employee can meet expectations within a set timeline.
How long should a PIP last?
Most last 30–90 days, depending on the role and the nature of the performance issue.
Does a PIP mean termination?
Not necessarily. Many employees complete PIPs successfully and continue in their roles.
Can employees refuse a PIP?
They can, but refusal usually signals unwillingness to improve. Most organizations proceed with the plan regardless.
Conclusion
A Performance Improvement Plan (PIP) is not a shortcut to termination. It is a structured tool for clarity, accountability, and support. When done well, it gives employees a fair chance to improve while protecting organizations with transparency.
In 2025, with hybrid teams and rising performance expectations, managers who master the PIP process will balance empathy with accountability. That balance is what builds strong, resilient teams.
👉 To analyze performance challenges before creating a PIP, try my Situational Leadership & Skill Will Matrix Tool, which helps pinpoint whether the issue is skill, will, or both.
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