How to Make Performance Improvement Plans (PIPs) That Actually Work
Performance Improvement Plans (PIPs) often carry a negative reputation, viewed primarily as the final step before an employee is terminated. Many organizations use PIPs to create a paper trail that protects the company if the relationship turns contentious. However, when implemented properly, a PIP can be a highly effective tool to help employees realign with their roles and succeed.
Rather than seeing a PIP as a sign that someone's career is about to end, it should be viewed as a structured opportunity for growth and improvement.
Be Honest From the Start
Before initiating a PIP, you must first consider a few critical questions:
- Do you genuinely believe this employee can succeed after the PIP? If the answer is no, then it may be better to skip the PIP and consider other options, such as reassignment or parting ways.
- Have you been clear in your previous communications? If this is the first time the employee is hearing about their performance issues, it’s likely unfair to move straight to a PIP. Clear, direct communication before reaching this stage is crucial.
Here’s how to ensure PIPs are used effectively:
1. Clarify the Purpose of the PIP
When you first introduce a PIP, address the misconception that it is a precursor to termination. Employees often research PIPs and may come across negative portrayals that cause them to worry about their job security. Be clear that the primary goal of the PIP is to set clear expectations, offer structured support, and help them succeed, not to usher them out of the company.
Frame the PIP as a coaching plan that will:
- Set achievable, clear goals.
- Provide measurable, actionable steps.
- Include ongoing feedback and support.
Explain that this is a proactive step to ensure alignment with the role, and not a punitive measure.
2. Establish a Feedback Loop
Continuous feedback is a cornerstone of a successful PIP. From the moment the PIP is launched, ensure that the employee knows when and how they will receive feedback, such as:
- Weekly one-on-one meetings.
- Written performance reviews.
- Daily progress check-ins where the employee can document achievements and challenges.
The goal is to create a regular rhythm of feedback so that the employee has ample opportunity to adjust and improve.
3. Rebrand the PIP Process
To reduce the stress and stigma associated with PIPs, consider rebranding them. Calling the process a “Coaching Plan” or a “Personal Development Plan” (PDP) can shift the employee’s mindset from feeling punished to feeling supported.
This subtle change in language can foster a more constructive environment, where employees are focused on their growth and feel encouraged to seek out what they need—whether that’s additional training, clearer guidance, or resources.
4. Set Clear, Attainable Goals
For any PIP to be effective, the goals outlined must be both clear and achievable. Vague objectives such as “be more proactive” or “improve communication” are not actionable and can set the employee up for failure. Instead, break down expectations into concrete, measurable steps, such as:
- Increase sales by 15% over the next three months.
- Submit weekly progress reports every Friday.
- Complete a training session on customer service techniques.
Additionally, provide the resources necessary for success, whether that’s extra training, tools, or coaching sessions. The more support you offer, the more realistic it is for the employee to meet the outlined goals.
5. Create a Paper Trail
Even though the PIP’s main purpose is to guide the employee back to successful performance, it also serves as important documentation. Should termination occur and legal action arise, the PIP will serve as evidence of the company’s attempts to help the employee.
Ensure the PIP documents:
- The performance issues.
- The support and resources provided.
- The feedback shared with the employee.
- Whether or not the goals were met.
This paper trail protects both the company and the employee, ensuring transparency in the process.
6. Allow Adequate Time for Improvement
Two weeks is often insufficient for meaningful improvement. When creating a PIP, make sure the timeline allows for realistic progress. Depending on the role and the nature of the issues, a period of 30 to 90 days is often more suitable.
Throughout this time, offer ongoing feedback and adjust the plan as necessary to ensure the employee has every chance to succeed.
7. Use Progressive Discipline If Necessary
If, despite the PIP, the employee continues to underperform, progressive discipline might be the next step. This involves escalating corrective actions, such as:
- Verbal warnings.
- Formal written warnings.
- Temporary suspension or demotion.
The PIP should clearly outline the consequences of failing to meet the expectations. While you want to maintain a focus on support and improvement, be transparent about what will happen if goals aren’t met.
8. Focus on Growth, Not Punishment
The key to a successful PIP is creating an environment where the employee feels supported, not singled out. A plan focused on growth and development, rather than punishment, fosters a positive atmosphere.
It’s essential to approach the PIP with empathy, providing guidance and encouragement throughout the process.
Conclusion: Make PIPs About Development, Not Dismissal
When used correctly, PIPs are not just a step toward termination—they are an opportunity for employees to improve and for managers to demonstrate support and leadership. A well-structured PIP provides clarity, actionable goals, and consistent feedback, giving employees the framework they need to succeed.
If the employee can’t meet expectations despite the support, the documentation and steps taken will help ensure a fair and transparent process, protecting both parties.
By focusing on communication, growth, and accountability, PIPs can transform from dreaded paperwork into a meaningful tool for both employee development and organizational success.
