Performance Improvement Plan (PIP) Policy: HR Guide & Template

What is a performance improvement plan?

A performance improvement plan (PIP) is a formal, written document that outlines specific performance issues, sets measurable goals, and defines a timeline for improvement. Unlike informal feedback, which may involve casual guidance or discussions, a PIP provides a structured approach supported by HR and managers to help employees bridge performance gaps.

When is a PIP used?

A performance improvement plan is typically implemented:

• When informal feedback has not led to sufficient improvement.
• For employees consistently underperforming against job expectations.
• As a developmental tool rather than a punitive measure.

Objectives of a performance improvement plan

• Establish clear performance expectations and measurable outcomes.
• Identify and address skill gaps or performance issues.
• Provide structured support, coaching, and resources.
• Strengthen employee growth and retention through fair opportunities.
• Create consistent HR documentation for performance-related decisions.

What should a performance improvement plan include?

A performance improvement plan template should cover the following:

• Employee details (name, designation, manager)
• Specific performance concerns and examples
• Expected goals and outcomes with measurable indicators
• Defined timeline for improvement (typically 30–90 days)
• Resources, training, or support offered
• Review checkpoints and progress discussions
• Final assessment and next steps

How to create a performance improvement plan for employees

1. Review the employee’s performance history and confirm the need for a PIP.
2. Engage in a discussion with the employee to understand challenges and solutions.
3. Draft a clear, written plan with SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals.
4. Define the support and resources HR or management will provide.
5. Schedule regular review meetings to track progress and provide feedback.
6. Document all discussions, progress, and final outcomes.

Benefits of a performance improvement plan

• Provides clarity on expectations and performance standards.
• Encourages accountability and ownership among employees.
• Offers employees a fair chance to improve and reduces turnover.
• Creates an official record that supports HR decision-making.
• Reinforces a growth-focused workplace culture.