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How to Create a Great Performance Improvement Plan (PIP)

Science of People Updated 3 weeks ago 16 min
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Performance improvement plans get a bad rap, but with planning and supportive leaders, PIPs can be a valuable tool for growth. Here's how to build one that actually works.

The calendar invite just says “Quick chat.” No agenda. Sent by your manager, for 4:30 on a Friday.

By the time you sit down, your stomach already knows. There’s a document on the desk, turned to face you, with three letters at the top: PIP.

If you have ever been on either side of that table, you know the feeling. For the employee, it lands like a countdown clock. For the manager, it’s often the conversation they have been avoiding for weeks.

But it doesn’t have to feel that way, and the stakes for getting it right have rarely been higher. Gallup’s State of the Global Workplace report1 found that employee engagement has slid to 20%, down from a 23% peak in 2022, and managers are cracking hardest: their engagement fell from 31% to 22% over that stretch, with five of those points lost in the last year alone. A high-pressure moment like a performance conversation is exactly where engagement gets won or lost.

So let’s rehabilitate this much-maligned tool. Done badly, a PIP is exit paperwork with a friendly font. Done well, it’s one of the clearest, kindest things a manager can offer: a specific, supported path back to success.

What’s a Performance Improvement Plan?

A performance improvement plan (PIP) is a structured process that spells out specific goals and actions to help an employee raise their performance and hit a clear target.

Here’s what surprises people: PIPs aren’t only for employees who are struggling. You can use one to help a solid performer sharpen a specific skill, or to give an ambitious employee a concrete map toward a promotion.

A well-designed PIP is not punishment and it is not a disciplinary write-up. Managers use it to address performance gaps that have already been named, such as:

  • Attendance problems
  • Communication that keeps causing friction
  • A knowledge or skills gap in a specific part of the role

It can also be a growth tool, aimed squarely at the skills someone needs to reach the next stage of their career.

Say the focus is time management. A PIP for that might look like this:

Objective: Strengthen time-management skills and improve productivity to meet deadlines and work more efficiently.

Performance expectations:

  • Complete project tasks within assigned timelines, plan and organize daily work schedules ahead of time, and cut down time spent on non-essential activities.

Training and development:

  • Attend a time-management workshop on prioritization, use a productivity tool to organize workflow, and join a goal-setting session to sharpen task planning.

Coaching and feedback:

  • Meet weekly with your manager to review progress, get specific feedback on how time is being spent, and talk through better ways to prioritize.

Support and resources:

  • Access to project management software for task tracking, plus training on how to use it.

Performance tracking:

  • Track task completion rates and on-time delivery, review where time actually goes each week, and use time-tracking tools to measure productivity.

Timeline and milestones:

  • Cut average time on non-essential tasks by 20% in the first month, reach a 90% on-time completion rate within three months, and hold steady on deadlines after that.

A PIP doesn’t need to be complicated. Its whole job is to make one thing unmistakable to both people: what “better” actually looks like.

Isn’t a PIP Just a Polite Way to Fire Someone?

Let’s name the elephant in the room, because your employee is already thinking it.

For a lot of people, “PIP” has become workplace shorthand for “start updating your resume.” And honestly? That reputation is earned. Some companies do use PIPs as a paper trail to justify a firing that was already decided. The employee is set up to fail, the boxes get checked, and 60 days later they’re gone.

If that’s the plan, a PIP is the wrong tool, and your team can smell it from a mile away.

A real PIP is built on a genuine belief that the person can succeed. The difference between the two shows up in the details:

  • A disguised firing sets vague or impossible goals, offers no real support, and schedules zero meaningful check-ins. The employee is alone with a countdown.
  • A genuine PIP sets specific, reachable goals, pairs each one with resources and coaching, and builds in regular conversations so nobody is surprised at the end.

Pro Tip: Before you write a single goal, ask yourself one honest question: If this person hit every target, would I be glad to keep them? If the answer is no, you don’t have a performance problem to coach. You have a different conversation to have, and stretching it out through a hollow PIP is unfair to everyone.

Your team is watching how you treat the person on a PIP. Do it with genuine support and everyone learns that struggling here means getting help. Do it as theater and they learn the opposite.

Why PIPs Are Worth Doing Well

When you get it right, a PIP gives an employee something rare: honest feedback about what needs to change, plus a real plan for how to change it.

That structure builds skills and confidence at the same time. The employee stops guessing where they stand and starts working toward something concrete.

And the payoff is real. Gallup’s Q12 meta-analysis2 of hundreds of studies found that the most engaged teams have dramatically lower turnover, up to 51% lower in low-turnover organizations, along with higher productivity and profitability. Every employee you coach back to strong performance is one you don’t have to replace.

Here’s a stat worth sitting with: Gallup has also found that managers account for roughly 70% of the variance in how engaged a team is3. When a struggling employee turns things around, you’re usually a bigger part of the reason than either of you realizes.

PIPs also work as the mirror image of Professional Development Plans, which we’ll get to later.

How to Introduce a PIP (With Scripts)

Starting the conversation with an employee can feel daunting. It doesn’t have to. Frame it as an opportunity to grow instead of a verdict, and you empower the person instead of deflating them.

Here’s how not to do it:

Manager: John, your performance has been disappointing. Your work quality is subpar, and clients have complained. You need to stop making mistakes and improve your productivity. If you don’t improve soon, we might reconsider your position.

Imagine being John. He walks in, learns his job is on the line, and gets zero information about how to fix it. Brutal.

Now a better version:

Manager: John, I appreciate your dedication. I’d like us to build an improvement plan together. I want to understand your perspective and set realistic goals. I’ll line up guidance and training, and connect you with colleagues who can help. How does that sound?

John: That sounds good. I’ve felt a little lost since I changed roles, and I really do want to improve.

Manager: Great. Let’s meet next week to dig in. In the meantime, jot down your own goals and the areas you want to focus on, and we’ll start from there.

Notice what the second manager did. They opened with a genuine positive, invited the employee into the process, and scheduled a follow-up so everyone had time to prepare for a real conversation.

People respond far better to hard feedback when they feel safe, a point Simon Sinek makes beautifully in the talk below.

Want more on this? Start with 21 Employee Engagement Strategies Every Manager Must Try.

How to Write a Performance Improvement Plan

A PIP can be written by a manager wanting to help a direct report, or by an employee taking ownership of their own growth. Either way, here’s how to build one that works.

1. Start From a Template

You can find templates online or in performance-management books. A template makes it easy to start and ensures you don’t leave out anything important. A simple PIP has five columns:

Skills/behaviors to improve Action to be taken Development opportunities/resources Date to be completed Success measure
List the specific skills, behaviors, or duties that need to improve What steps need to be taken? What training, resources, or support are needed? Target date What does improvement look like?

2. Make It Genuinely Easy to Read

Use bullet points instead of dense paragraphs, and skip the fancy language. If the plan is hard to follow, it can’t do its one job.

Compare a wordy version to a clean one.

The wordy version: The employee will improve time-management skills to meet project deadlines consistently by attending time-management workshops to learn techniques for prioritization and task organization. She will enhance her communication abilities through participation in communication training sessions, and develop problem-solving skills by seeking mentorship from a senior team member.

The clean version:

Goals:

  • Improve time management to meet project deadlines consistently.
  • Sharpen communication with teammates.
  • Build proactive problem-solving skills.

Actions:

  • Attend a time-management workshop on prioritization and task organization.
  • Join communication training sessions for new techniques.
  • Meet with a senior mentor to work through problem-solving strategies.

See the difference? Same content, but the second one you can actually act on.

3. Reflect on Real Strengths and Weaknesses

Start by taking honest stock of current skills and gaps. Which tasks does the person excel at, and which ones consistently trip them up? That is what tells you where to aim the plan.

4. Be Specific About What Needs to Change

Vague goals waste everyone’s time. Instead of writing “attendance,” name it: is the issue excessive absences, chronic lateness, or missed meetings? The more specific you are, the more coachable it becomes.

5. Set S.M.A.R.T. Goals

Define what you want to achieve, and make each goal specific, measurable, attainable, relevant, and time-bound. Curious what each one means? Check out SMART Goals: 5 Tips for Successful Goal Setting.

For example, to strengthen presentation skills: “Deliver at least three well-prepared, engaging presentations to different audiences within the next three months.”

6. Line Up the Right Resources

Make sure the person has what they need to actually hit the goals, and then a little more. That might mean support from peers and mentors, protected time to learn a new skill, or a tool like Monday.com or Asana.com to track progress.

7. Commit to Continuous Learning

Build in ways to keep growing: relevant workshops, online courses, or time set aside for reading and self-study.

Try this: Create a simple learning calendar with specific slots for learning activities, like a weekly webinar or 20 minutes of reading.

8. Build In a Way to Track Progress

Decide up front how you’ll check progress and adjust. Combine hard numbers (completed tasks, deadlines hit) with softer signs (self-reflection, manager feedback) for a full picture.

Try this: Use a journal or a task-tracking app to log progress, roadblocks, and any changes you make to the plan.

9. Set a Realistic Timeline

Here’s where a lot of PIPs quietly go wrong. Too short and you’re setting someone up to fail. Too long and the whole thing loses urgency.

Most effective PIPs run 30, 60, or 90 days, matched to how big the change is. A single skill gap might need 30 days. A broader shift in how someone works usually needs 60 to 90.

Whatever the window, put dates on it:

  • Complete the time-management workshop by [date].
  • Attend communication training within the next three months.
  • Start bi-weekly mentorship sessions beginning [date].

Action Step: Add every check-in to a shared calendar right now, for the full length of the plan. A PIP with no scheduled conversations is a PIP designed to fail.

10. Seek Feedback Along the Way

Actively ask peers, supervisors, or mentors for input. Constructive criticism is how you catch blind spots early instead of at the finish line.

A few questions worth asking:

  • Are there growth opportunities or added responsibilities I should consider?
  • What’s one thing I could do to communicate better?
  • Where do you see me improving already, and where am I still falling short?
  • Any resources that would help me hit these goals?

A Note on Remote and Hybrid PIPs

Running a PIP when you barely share a time zone adds real friction, and it’s worth planning for.

When you can’t catch someone at their desk, structure has to carry more of the weight. Put every check-in on the calendar as a video call rather than a Slack message. Write feedback down so nothing gets lost in a hallway that no longer exists. And be extra clear about how progress will be measured, since you can’t see the day-to-day effort behind it.

Pro Tip: On a remote PIP, over-communicate on purpose. What feels like too many check-ins to you often feels like the right amount of support to someone who’s anxious and working alone.

Focus on Performance Over Personality

As a manager, keep the conversation on what the employee actually does rather than who they are. Centering measurable outcomes and observable behaviors keeps the process fair, for both of you.

Clarify Expectations

Get on the same page about specific expectations and outcomes. Be concrete and measurable about the targets.

For example, instead of “be more organized,” define the real goal: “consistently meet project deadlines and submit error-free reports.”

Ground Decisions in Data

Lean on objective evidence when you assess performance. Use measures like key performance indicators or metrics.

If the role involves sales, look at revenue generated, conversion rates, or customer satisfaction scores. That keeps the evaluation grounded in facts instead of vibes.

Check In Regularly

Set a rhythm of regular check-ins to talk through progress and give ongoing guidance. Anchor each one to the specific goals in the PIP.

If someone is working on presentation skills, give feedback on their visuals, body language, or how they held the room.

Action Tip: When you give feedback, try the S.B.I. model, Situation, Behavior, Impact, so you stay on actions instead of personality:

“Remember last week’s client meeting when we presented the quarterly report…” (Situation)

“The slides were mostly text, and you read directly from them, so there weren’t many visuals to hold attention.” (Behavior)

“The clients seemed to tune out, and we missed a chance to land the insights that mattered most.” (Impact)

Give Feedback That Actually Helps

Your goal as a leader is to help the person see what’s not working and how to fix it. The PIP is one way to do that, but how you deliver the feedback shapes everything.

Deliver It With Warmth

Don’t just list what went wrong. Give specific examples of where they can improve, and be genuine when you praise what’s working: “You did a great job on this project because…”

Use Concrete Examples

Instead of “you don’t listen” or “you aren’t friendly,” reach for a real moment that shows your point, then offer a way to do it differently.

For example:

“In yesterday’s meeting, I noticed you cut in a few times while we were mapping the timeline, and it made it harder for others to add their piece.”

“Remember our chat about active listening last week? That feels like a great area to focus on over the next few days.”

Point Toward the Future

Here’s one of the most useful findings in all of feedback research. A study on feedback effectiveness found that the single strongest predictor of whether feedback lands is the recipient’s sense that the conversation focused on plans for the future rather than an autopsy of the past.

So aim the whole conversation forward: where the person is headed and how to get there. That, more than any perfectly worded critique, is what makes performance feedback stick.

How to Respond to a Performance Improvement Plan

If you’re the one who just got handed a PIP, take a breath. It’s genuinely a good sign that your company is investing in your improvement instead of skipping to the exit. This is your chance to show what you’re made of.

Here’s how to move forward.

Understand the expectations. Read the document carefully and make sure you know exactly what’s being asked. If anything is fuzzy, ask.

If your PIP says “increase productivity,” you might ask:

  • Which parts of productivity should I focus on first?
  • How will it be measured?
  • Is there a specific target or benchmark?
  • What resources are available to help me?
  • What’s the timeframe?

Action Tip: Request a meeting with your manager specifically to walk through the plan and clear up any questions.

Take ownership. Show you’re committed to improving and willing to do the work. That posture alone changes how the whole plan goes.

Communicate and ask for feedback. Check in regularly, share progress, and raise challenges early instead of hiding them.

Take initiative. Go get the training or mentorship tied to your improvement areas instead of waiting for it to arrive.

Action Tip: For each area in your PIP, write down one extra way you could improve it, then share that list with your manager.

Document your wins. Keep a running record of progress and positive moments. During my first few weeks at a new job, I started a document called “A Gentle Reminder,” where I saved any encouraging email, kind comment, or good experience at work. On the rough days, I would reread it to remember my wins. Consider starting your own.

The whole point is to show real commitment to growth. Open communication, genuine ownership, and a hunger for development will carry you through the process.

Turn the PIP Into a Skills Upgrade

A PIP isn’t only about closing a gap. It’s a rare moment when your manager is actively invested in your growth, and when you can tap into resources, mentoring, and opportunities you might not reach on your own.

Example: Say you want to move into leadership, and your PIP flags delegation as a weak spot. That’s your opening. Set a goal to delegate a specific number of tasks over a set period, give clear instructions and support each time, and ask your team for feedback on how it’s landing.

Connect your PIP goals to the skills you actually want, chase down the learning that builds them, and keep asking for feedback. Handled that way, a rough moment becomes a genuine step forward.

Action Tip: Write down two or three skills you want your future self to have, and ask your manager what opportunities exist to build them.

How to Measure Whether the PIP Worked

To know if a PIP is working, you need clear goals from the start. You should be able to answer:

  • What performance standard are we measuring? (I’ll improve productivity by using Asana to track my projects.)
  • How will I know it’s being met? (I’ll deliver all projects on time or early for the next month.)
  • How will I track progress over time? (I’ll log due dates in Asana and check assignments daily.)
  • Am I combining hard numbers with feedback? (I’ll meet my manager weekly to review assignments and flag scheduling conflicts early.)

If you can’t answer these, the plan is missing something important.

Common PIP Mistakes (and How to Dodge Them)

Even a well-meaning PIP can stumble. Here are the traps to watch for.

  • Vague language. Fuzzy goals give the employee nothing to aim at. Spell out the areas, goals, and measures.
  • Going it alone. Bring the other person into the planning. A plan someone helped build is a plan they’ll actually follow.
  • Impossible targets. Set goals that stretch without setting up a fall. Unreachable goals kill motivation instantly.
  • No real support. Provide the tools, training, and time to make the change genuinely possible.
  • Set it and forget it. Follow up consistently. Without steady check-ins, a PIP just gathers dust until judgment day.

PIP vs. PDP: What’s the Difference?

A Performance Improvement Plan (PIP) fixes an immediate performance problem. A Professional Development Plan (PDP) grows an already-solid employee’s skills and career over the long haul.

A PIP is short-term and usually kicks in when performance has dipped below the bar. It names the gaps, sets clear goals, and puts a timeline on closing them. The focus is on meeting the standard, soon.

A PDP is the long game for someone performing well who wants to advance. It sets development goals, identifies learning like training or certifications, and maps a path to new skills. It’s proactive, built to nurture talent rather than correct a problem.

You can find more ideas at 25 Professional Development Goals You Must Set Right Now.

Ready to go deeper on the PDP side? Check out Professional Development Plan: What It Is and Why You Need One.

Your PIP Takeaways

Let’s pull it together. A performance improvement plan, done right, is one of the most useful tools in a manager’s kit.

  • A PIP is a structured process to help an employee raise their performance and hit a clear target. It’s not only for people who are struggling; it can sharpen strong performers too.
  • The goal is honest feedback plus real support, guidance, and training. Approach it as an opportunity for growth, never as punishment.
  • Before you write one, ask yourself if you’d genuinely be glad to keep the person if they succeeded. If not, a PIP is the wrong tool.
  • When writing a PIP, start from a template, keep it readable, be specific about what needs to change, set S.M.A.R.T. goals, line up resources, set a realistic 30-to-90-day timeline, and build in regular check-ins.
  • As a manager, focus on the employee’s performance rather than their personality, use objective data, and point feedback toward the future.
  • As an employee, understand the expectations, take ownership, communicate often, take initiative, and document your wins.
  • Watch for the classic traps: vague goals, no collaboration, impossible targets, no support, and no follow-up.

Handle it with clarity and genuine care, and a PIP stops being a threat and becomes what it was always meant to be: a path forward. You’ve got this.

Looking for more ways to grow? Check out The 16 Best Personal Development Blogs to Read.

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