Performance improvement plan: what it is and main characteristics

A performance improvement plan (PIP) is a formal human resources (HR) document designed to help employees overcome specific performance gaps in the workplace. 

Used by managers and HR professionals across all industries, PIPs sets clear expectations, and measurable goals, as well as a defined timeframe, typically 30, 60, or 90 days. This roadmap provides the employee with a structured path to meet an organization’s performance standards.

Although PIPs are often associated with the risk of termination, they also serve as a documented framework to support struggling employees before disciplinary action becomes necessary.

In this guide, you’ll find valuable information to help you understand what a performance improvement plan is, when it’s applied, how to develop one step by step, and what employees’ rights are throughout the process.

What are performance improvement plans (PIPs)?

Performance improvement plans are formal, confidential documents that detail the steps an employee must take to meet agreed-upon standards and objectives. They are typically developed in collaboration with the employee, their supervisor, and the human resources department.

A PIP formalizes performance expectations in writing, establishing a clear framework with defined deadlines, which both parties sign.

This makes it more binding than informal conversation or routine reviews.

PIP Objectives

Performance improvement plans focus on three key objectives:

1. To help employees experiencing difficulties address specific performance shortcomings.
2. To protect the organization through documented accountability.
3. To provide a structured roadmap to avoid disciplinary action or termination.

Used correctly, it is a practical tool for clearly aligning the expectations of managers and employees within an organization and fostering better performance, rather than serving as a precursor to termination.

When is a performance improvement plan used?

PIPs are typically implemented when an employee consistently performs below established expectations, and when previous informal feedback has not led to a noticeable improvement.

Within a broader performance management framework, a PIP typically follows a sequence: documented conversations, verbal warnings, and written notifications, before becoming a formal communication.

This sequence of warnings to the employee is known as progressive discipline, and the PIP is one of its most structured stages.

When an employee finds themselves in situations such as those described below, they may be subject to a performance improvement plan:

• Fails to meet established productivity goals or stipulated key performance indicators (KPIs) on a consistent basis, despite support from supervisors or management.
• Makes recurring mistakes that affect team performance, customer satisfaction, or operational standards.
• Habitually violates conduct or behavioral standards, such as constant tardiness, failure to comply with internal policies, or communication issues that affect the work environment.
• Fails to adapt to a change in duties, such as a promotion or changes in responsibilities that reveal a lack of competencies.

PIPs are not exclusive to the private sector; they can also occur in the public sector or in education when staff fail to meet institutional benchmarks or professional standards defined by HR.

When a PIP Is Not the Right Tool

As we just explained, a PIP is appropriate if it relates to performance issues and if the employee has a realistic opportunity to improve.

However, it is not an appropriate tool in these other contexts:

• When, at the time of hiring, it was determined that the employee is not the right person for the job. This issue is not related to performance but is a structural matter.
• When the employee has undisclosed health conditions or disabilities that may entitle them to workplace accommodations under the Americans with Disabilities Act (ADA), before any formal process begins.
• When the organization has not provided the employee with the training and/or tools necessary to perform their job successfully. In these cases, additional training must precede or replace the PIP.
• When the employee is facing temporary personal situations that may affect their performance, such as bereavement, the illness of a close family member or dependent, or situations of acute stress that are typically addressed with support and flexibility from the company.

It is important to note that in these contexts, implementing a performance improvement plan may expose the company to legal risks (claims of wrongful termination or discrimination, under regulations such as the Family and Medical Leave Act), in addition to undermining the credibility of the process for all parties.

The Role of Training and Development Within a PIP

If an employee’s poor performance is due to a skill gap or lack of knowledge, a PIP can incorporate additional training and development resources as a central component.

In such contexts, the plan specifies what type of training will be provided to the employee, for how long, and how it will be evaluated.

This is where the PIP serves as a tool for improving performance and enhancing or updating the talent already present in an organization: not as a disciplinary end point, but as an active intervention that combines clear expectations, measurable objectives, and organizational support.

That is why it is so important to understand how to design a performance improvement plan effectively, because training and skills development become essential levers through which professional development is integrated into a company’s performance culture.

Main characteristics of a performance improvement plan

A performance improvement plan is a structured roadmap that outlines exactly and in detail what an employee needs to change, how they will be evaluated, and what kind of support they will receive from the company.

Below, we will share with you the key elements that define a typical PIP, although the success of this type of document lies in its customization.

Performance standards and expectations

The first thing it must include is how good performance is defined in the specific role that is the subject of the PIP. Keep in mind that this includes both the employee’s behavior and their results:

• Behavior: how the person works with others, how they communicate, whether they follow procedures, etc.
• Results: whether they meet deadlines, quality thresholds, etc.

It is essential that the standards required be directly linked to SMART goals, that is, they must be specific, measurable, achievable, relevant, and time-bound.

This will help you avoid subjective evaluations, which are difficult to justify and may confuse the employee rather than help them get back on track.

In this regard, it is essential that, for the PIP to function as a tool for change, it addresses observable and specific expectations of the job that align with the job descriptions and the organization’s priorities.

For example, in a training context, this approach naturally identifies areas for improvement in employee performance evaluation.

The trainer’s expectations may include the timing of grade submission, levels of classroom participation, or adherence to training schedules.

As you can see, these are not indicators based on personal opinions, but rather on objective elements that can be standardized.

---

---

Measurable objectives and success criteria

Once clear standards have been established, the PIP must translate them into measurable objectives and success criteria, because employees need concrete, observable goals to leave no room for personal interpretation or ambiguity.

Here are some examples:

• Complete a specific number of tasks per day.
• Meet stipulated deadlines.
• Achieve sales targets or customer satisfaction scores.
• Reduce errors below a specific threshold over a set period.
• Respond to certain types of internal requests within the stipulated timeframe.

By expressing these criteria in terms of verifiable figures, frequencies, or results, organizations strengthen the legal defensibility of the PIP and facilitate the justification of subsequent actions.

As for human resources practices, such as HR toolkits from training centers and universities, they typically emphasize that each objective in the document must be evidence-based and objectively verifiable.

Timeline and improvement period

The clearly defined improvement period is one of the pillars of a properly designed performance improvement plan.

This period is typically set at 30, 60, or 90 days (it is important to specify whether these are calendar or business days), depending on the nature of the position, the complexity of the issues, or applicable policies.

Many manuals recommend a 30-day plan for addressing simple issues, and a 60–90-day plan for more complex or multifaceted interventions.

In addition to the start and end dates, it is also necessary to include monitoring milestones so that the parties involved know when progress will be reviewed.

Support, resources, and training

For a PIP to be robust and ethically fair, it must also provide support.

Employees must have access to the tools, training, and tailored coaching or support to increase the likelihood of achieving the objectives.

For example, this type of plan may include:

• Advice from the employee’s supervisor or an HR representative, with one-on-one meetings to monitor progress.
• Training programs to develop strategic skills necessary for the PIP’s success, such as time management, prioritization, conflict resolution techniques, etc.
• Reasonable workplace accommodations when necessary to improve the employee’s performance.

From the perspective of talent assessment and educational technology, assessment tools and digital platforms such as online learning modules, remotely proctored exams, or competency tracking systems can be incorporated at this stage.

Keep in mind that when integrating these, it is important to treat them as support resources rather than punitive measures. This will also help you achieve greater commitment from the person being evaluated.

Monitoring, follow-up meetings, and documentation

Finally, formalized and documented monitoring is an essential final component.

PIPs must be formal written documents that clearly reflect progress and its systematic tracking over time.

To put this common recommendation in HR best practices into action, you can use:

• Periodic follow-up meetings.

• These allow you to review performance milestones, discuss challenges and roadblocks, and adjust support.
• Written records. Everything discussed in the meetings must be documented in reports accessible to both the evaluator and the employee.
• A final evaluation. This is necessary to determine whether the employee has met the defined success criteria, has partially met them, or has failed to meet them.

In short, a good PIP is a coherent, fair process based on objective evidence.

How to do a performance improvement plan step-by-step and examples

If you’re wondering how to write a performance improvement plan, in the following sections we propose 6 steps to guide you.

These steps reflect best practices in human resources frameworks that can be applied to both private companies and public agencies and educational institutions.

Step 1: identify the performance issue

The first step is for the manager to document the problem as accurately as possible and include it in the section on problematic issues. They should refer to specific incidents, with dates and precise comments.

For example, this section could include the following considerations:

• Customer satisfaction scores for this employee averaged 51% during the first quarter of the year, compared to the team’s benchmark of 80%.

The type of information you should not include are abstract comments such as “the quality of the employee’s work has been declining,” because it is an imprecise assessment.

You may be wondering if there is an appropriate time to initiate a PIP. In this regard, keep in mind that you do not need to wait for the annual review to do so; early intervention increases the likelihood of genuine improvement.

Step 2: Define clear and measurable goals

Once you have documented the problem, the next step is to define clear objectives and draft them transparently.

Take a look at the following examples:

• Submit the requested weekly reports by 3:00 PM on Friday without the supervisor having to remind you.
• Complete the assigned professional development modules by October 15, and submit the certificates of completion to HR management.

As you can see, the examples include specific details so that the person subject to the performance improvement plan knows exactly what is expected of them, how, and by when.

Step 3: Set a realistic improvement period

The duration of the plan must be realistic and adapted to the complexity of the issues to be addressed, such as:

• 30 days for isolated and simple issues.
• 60 days for situations of moderate complexity.
• 90 days for changes requiring sustained performance.

In any case, the employee must have a reasonable opportunity to demonstrate improvement. In this section, the PIP may include additional considerations:

• Checkpoints: tracking milestones on specific dates prior to the document’s deadline that allow for ongoing adjustment of progress assessments and resolution of the employee’s roadblocks or concerns.
• Provisions regarding leave: if the employee takes extended leave while the process is underway, the PIP must be paused and its implementation period extended to preserve the validity of the process.

Step 4: detail support and resources

The PIP must include a section addressing issues such as what support will be provided, who will provide it, when, and how. Each commitment regarding support or resources must be clearly described:

• The manager will hold weekly 20-minute meetings with the employee every Friday at 9:00 a.m. for the duration of the plan.
• HR will provide access to the training module the week before the plan’s start date.

Appropriate support, in both companies and educational institutions, may include pedagogical coaching or access to mentoring programs.

Step 5: outline consequences and outcomes

One of the key attributes of a performance improvement plan is transparency regarding outcomes; furthermore, clearly stipulating this information aligns with legal and ethical frameworks.

In this section, you must outline the objectives of a PIP and its potential consequences to provide a comprehensive view of what the process means in practice.

In this regard, two scenarios may arise:

• The employee meets the defined objectives. The PIP formally concludes. You must issue a written notification confirming successful completion and document it in their HR file.
• The employee does not meet the objectives. The usual consequences are: a formal written warning and an extension of the improvement period, demotion or reassignment of duties, non-renewal of the contract, or termination of the contract.

In any case, the PIP must clearly state what happens in each scenario and align the information with applicable laws and regulations.

For example, in many jurisdictions, the employee must receive prior notice and the opportunity to respond before the decision to terminate is finalized.

Step 6: review and sign the PIP

As a final step, before delivering the document to the employee, it must be reviewed by the HR department to confirm legal compliance, internal consistency, and proportionality.

As we mentioned earlier, the objectives, timeline, and consequences must be appropriate to the severity of the documented issue and comply with applicable legal provisions.

The timing of the signature is also critical. It should not be limited to an administrative formality; rather, throughout the conversation, the manager must go over the roadmap point by point with the employee.

There are 3 points the manager must clarify with the employee:

1. The signature confirms receipt of the document, not agreement with its contents.
2. The employee has the right to view all records used to verify the information.
3. In unionized workplaces and federal agencies, the employee has the right to request the presence of a union representative or legal counsel if they deem it appropriate.

The performance improvement plan must be signed by the direct supervisor of the person required to follow it, or by the manager and an HR representative, and access is restricted to those who play a direct role in the process.

What does a performance improvement plan look like?

In the following table, which we have created based on sources from institutions and organizations such as the University of Maryland, the Society for Human Resource Management (SHRM), and the Office of Personnel Management (OPM), you can see a practical example of what each section might include.

In any case, remember that you need to adapt it to the specific needs of each situation.

PIP Section	Content Description	Practical example (Role: Sales Executive)
Employee information	Essential data to identify the employee, their role, supervisor, and the start date of the plan.	Name: John Doe. Position: Account Executive. Supervisor: Jane Smith. Date: October 1st, 2026.
Summary of performance issue	An objective description of areas where performance fails to meet expectations, citing specific data or incidents.	John has failed to meet his quarterly sales quota for two consecutive quarters (currently performing at 65% of the target).
Performance standards	Definition of the expected level of performance for the role according to the job description.	All executives are required to maintain a minimum monthly sales volume of $50,000 and perform 20 daily prospecting calls.
Measurables objectives (SMART)	Specific, Measurable, Achievable, Relevant, and Time-bound goals to correct the deficiency.	Achieve $180,000 in total sales over the next 90 days and log a minimum of 10 new client meetings per month.
Timeline	The total duration of the plan and specific dates for milestone check-ins (commonly 30, 60, or 90 days).	Duration: 90 days. Intermediate Reviews: Days 30 and 60 to evaluate progress and provide feedback.
Support and resources	Tools, training, or mentorship the company will provide to assist the employee in succeeding.	Access to an advanced sales closing workshop and weekly “shadowing” sessions with the team’s top performer.
Monitoring and evaluation	The method and frequency of progress reviews (e.g., weekly or bi-weekly one-on-one meetings).	A mandatory face-to-face meeting every Friday at 9:00 AM to review the CRM pipeline and the week’s outreach.
Consequences	A clear statement of actions to be taken if objectives are not met (ranging from PIP extension to termination).	Failure to show sustained improvement or meet the SMART goals by the end of the 90 days will result in disciplinary action, up to and including termination.

Performance improvement plans and technology

Digital assessment tools enable performance improvement plans to be more objective and data-driven. Thanks to the tools they incorporate, organizations can closely track progress, reinforce objectives, and document improvements.

Solutions such as proctoring can be integrated into PIPs to ensure that assessments are fair and secure during training or certification.

When strategically combined with support and development measures, these tools help organizations and institutions move from vague expectations to measurable performance improvements based on objective data.

If you want to optimize your performance improvement plans with innovative online proctoring technology that respects your users’ privacy, we invite you to discover our proctoring plans and request a free demo so we can explain how we can help you.

Recommended resources: Performance improvement plans (U.S.)

The following resources will provide you with useful information when developing a performance improvement plan:

• U.S. Office of Personnel Management (OPM) – Performance Management. This is the go-to source for the federal public sector, offering guidelines on how to address poor performance that have become the gold standard for many corporations.
• Society for Human Resource Management (SHRM). The world’s largest HR association, which has become a leading authority. You’ll find specific articles offering advice on retaining talent versus termination.
• Harvard Business Review (HBR) – Performance Management. Provides psychological and leadership perspectives through articles that analyze whether PIPs actually work.