How to Put an Employee on a Performance Improvement Plan
A Performance Improvement Plan (PIP) has a reputation problem. In many organizations it has become synonymous with “we’ve already decided to fire you, this is just paperwork.” That reputation is earned in organizations that use PIPs that way.
But used correctly, a PIP is a genuinely useful tool. It gives an underperforming employee a structured, documented opportunity to course-correct. It gives the manager a clear framework for providing feedback and support. And it gives the organization documentation it can rely on if the employment relationship ultimately ends.
A PIP is typically the third step in a progressive discipline process. If you do not have a written discipline policy yet, start here first.
Here’s how to do it right.
Before You Start: Is a PIP the Right Tool?
A PIP is appropriate when an employee has a specific, addressable performance gap that has not improved through coaching and informal feedback. It is not appropriate in every situation.
Do not use a PIP when:
• You have already made the termination decision. If the outcome is predetermined, a PIP is dishonest and exposes you to claims of bad faith.
• The issue is serious misconduct that warrants immediate termination like theft, harassment, or workplace violence.
• The performance gap is caused by factors outside the employee’s control like unclear expectations, inadequate resources, or a role that was misrepresented.
Before initiating a PIP, ask yourself honestly: if this employee does everything we’re asking in the next 60 days, would we keep them? If the answer is no, a PIP is not the right next step.
Step 1: Consult HR Before You Begin
Every PIP should be reviewed by HR before it is presented to the employee. HR will confirm that the performance concerns are documented, that the process has been followed consistently with other employees in similar situations, and that the plan itself is legally sound.
Skipping this step is one of the most common (and most expensive) mistakes managers make. A PIP that was initiated without HR involvement, or that was applied inconsistently across employees, is a much weaker document if the situation becomes a legal dispute. Your PIP process should also be referenced in your employee handbook so employees understand what formal performance management looks like before it happens to them.
Step 2: Document What’s Been Done Already
A PIP should not be the first time an employee is hearing about a performance concern. Before issuing a PIP, you should have prior coaching conversations, feedback sessions, or warnings documented in the employee’s file.
If you cannot point to prior documented feedback, start there. Have the conversation, document it, give the employee a reasonable period to improve, and then move to a PIP if improvement does not occur.
A PIP with no prior documentation looks like a setup. A PIP that follows a documented pattern of feedback and support looks like a fair process.
Step 3: Write SMART Goals
The performance goals in a PIP must be specific, measurable, achievable, relevant, and time-bound, or ‘SMART’. Vague goals are not defensible and do not give the employee a clear target to hit.
Bad goal: “Improve communication with the team.”
Good goal: “Respond to all internal emails within one business day. Attend all scheduled team meetings without unexcused absence. Provide weekly project status updates to the manager every Friday by 5pm.”
The difference is that the good goal is measurable. At the end of the PIP period, you can look at the record and make an objective determination about whether it was met.
Write 2–4 goals maximum. More than that becomes unwieldy and harder to track consistently.
Step 4: Include Manager Support
A PIP is not just a list of demands. It should also document what the company and manager will do to support the employee’s improvement. This might include additional training, more frequent check-ins, access to resources, or removal of a barrier that was contributing to the problem.
Including manager support in the PIP serves two purposes: it demonstrates good faith, and it closes the argument that the employee failed because they were not given the tools to succeed.
Step 5: Hold the Meeting Properly
Present the PIP in a private, in-person (or video) meeting. HR should be present, or at minimum available by phone.
Be direct. Do not soften the message to the point where the employee leaves unsure whether this is serious. They need to understand that this is a formal process with real consequences for failure to improve.
Give the employee time to respond and ask questions. Document any responses they provide. Have them sign the PIP to acknowledge receipt, and note explicitly that signing does not indicate agreement, only receipt.
If the employee refuses to sign, note that on the document and have HR or a witness co-sign.
Step 6: Run Check-Ins Consistently
A PIP without regular check-ins is not a PIP. It is a piece of paper. Schedule biweekly check-in meetings for the duration of the plan and document every one of them: what was discussed, what progress was observed, what concerns remain, what action items were set.
These check-in notes are your record. If you end up in a situation where you need to terminate at the end of the PIP period, this documentation is what demonstrates that you followed through on the process, provided feedback along the way, and gave the employee a genuine opportunity to improve.
Step 7: The Outcome
At the end of the PIP period, there are three possible outcomes:
• Goals met: The employee improved. Close the PIP, document the positive outcome, and continue to monitor performance. Acknowledge the improvement explicitly. Employees who succeed on a PIP and hear nothing about it feel like they are still on thin ice indefinitely.
• Partial improvement: Some progress but not full goal attainment. Consult HR. Depending on the degree of improvement and the nature of the remaining gaps, you may extend the PIP or proceed to termination.
• Goals not met: Consult HR and proceed with termination in accordance with your progressive discipline policy. Your documentation from the PIP process is what supports the decision. For a step-by-step walkthrough of how to handle the termination conversation itself, see our guide on how to conduct a termination meeting.
The Bottom Line
A PIP done right is not a gotcha. It is a structured, documented process that gives everyone, employee and employer alike, clarity about what is expected, what support is available, and what the stakes are. Used that way, a PIP is one of the most valuable tools a manager has.
Get a Complete PIP Template
Our Performance Improvement Plan Template includes a full Manager Guide, employee information and prior feedback log, three structured goal blocks with measurement criteria, a biweekly check-in log, final review section, and three-party signature block.
→ Performance Improvement Plan (PIP) Template — $35 | pragmatichrgroup.com
Editable Word document + PDF. Instant download. Created by a SHRM-SCP certified HR professional.
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