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Download our free performance improvement plan template for Word to streamline your process. For a detailed understanding of what a PIP entails, its objectives, the creation process, essential components, and the advantages of utilizing a performance improvement plan template, continue reading.
What is a Performance Improvement Plan?
A Performance Improvement Plan (PIP), sometimes referred to as a performance action plan, is a strategic tool employed by managers and human resources professionals to guide underperforming employees toward success in their roles. It delineates the employee’s performance challenges, sets clear improvement expectations, and establishes a timeline for achieving these goals.
Purpose of a Performance Improvement Plan
The main goal of a PIP is to assist employees in recognizing and overcoming work-related challenges. It is not punitive; instead, it serves as a constructive framework designed to help an employee enhance their performance and/or behavior that may not meet expectations.
This comprehensive guide will explore what a PIP is, its objectives, the steps to create one, critical elements to include, its benefits, and answers to frequently asked questions regarding this valuable resource.
How to Create a Performance Improvement Plan
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Identify the Problem. Clearly articulate the areas where the employee is falling short of expectations.
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Develop Improvement Objectives. These should be specific, measurable, achievable, relevant, and time-bound (SMART).
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Provide Support and Resources. Specify what the employer will do to aid the employee in meeting these objectives.
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Set a Timeline. Define a realistic timeframe for the improvement process.
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Document the Plan. Detail all aspects of the PIP, including the consequences of failing to meet the improvement objectives.
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Communicate the Plan. Discuss the PIP with the employee, allowing for questions and clarifications regarding expectations.
What to Include in a Performance Improvement Plan
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Specific Performance Issues. Clearly outline the exact behaviors or performance metrics that are lacking.
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Improvement Objectives. Define precise and measurable goals for the employee to achieve.
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Support and Resources. Describe how the employer will assist the employee in their improvement journey.
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Timeline. Indicate the period within which the improvements should occur.
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Consequences. Specify what will happen if the objectives are not met within the established timeframe.
Benefits of a Performance Improvement Plan
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Clarified Expectations: Employees gain a clear understanding of performance expectations and areas for improvement.
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Support for Employees: By outlining available resources and support, employees feel empowered to enhance their performance.
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Improved Performance: Regular feedback and guidance can lead to significant improvements in job performance and productivity.
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Employee Retention: Provides a pathway for struggling employees to improve rather than face termination.
Performance Improvement Plan FAQ
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How is a PIP different from a Performance Development Plan?
A Performance Improvement Plan (PIP) is usually implemented to address inadequate performance, while a Performance Development Plan is a proactive approach aimed at enhancing an individual’s performance and skill set.
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What should a PIP include?
A PIP should specify the areas needing improvement, include SMART goals, outline the support and resources provided by the company, and state the timeline for achieving these goals. It should also clarify the consequences of not meeting the objectives.
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What are the steps of performance improvement?
The steps consist of: Identifying the problem areas, establishing improvement objectives, discussing the plan with the employee, providing necessary support, and tracking progress throughout the designated timeline.

