run-performance-improvement-plan

Run Performance Improvement Plan

Manage a direct report's documented performance gap through a structured, time-bound PIP with clear goals, regular check-ins, and defined success criteria — so both parties know exactly what is expected and what happens if those expectations are not met.

Why This Is Best Practice

Adopted by: The PIP is the standard structured underperformance management tool across enterprise HR systems globally; SHRM's "Managing Employee Performance" knowledge center documents the PIP as the industry-standard mechanism between informal feedback and separation; it is used at Google, Microsoft, Amazon, and all major employers as a legally documented intermediate step; HRCI (HR Certification Institute) includes PIP design and execution as a core competency in the PHR and SPHR certifications Impact: When executed correctly — with clear goals, regular check-ins, and genuine support — studies by CIPD (2020) show approximately 40–50% of employees on PIPs reach the defined performance standard; the primary value of a formal PIP is not termination — it is clarity: many employees on PIPs are succeeding in the wrong role, and the structured clarity of a PIP either surfaces the correct path or creates a legally defensible and humane record if separation becomes necessary; skipping the PIP and proceeding directly to separation exposes the organization to wrongful termination claims in most jurisdictions Why best: Informal feedback alone (give-developmental-feedback) fails for chronic underperformance because it lacks documented timelines, specific measurable standards, and defined consequences; performance reviews document the problem but do not provide a structured remediation path; the PIP bridges the gap between "we've had the conversation" and "we've given this person a real, documented, structured opportunity to succeed"

Sources: SHRM "Performance Improvement Plans: What Managers Need to Know" (shrm.org); CIPD "Managing Performance" guidance (cipd.org, 2020); HRCI PHR Body of Knowledge; Littler Mendelson "Termination Best Practices" (littler.com); Harvard Business Review "The Right Way to Use a PIP" (2016)

Important: PIP processes have legal implications in most jurisdictions. Consult your HR and legal team before initiating a PIP. This skill describes the management best practice; jurisdiction-specific employment law governs the legal requirements.

Steps

1. Confirm a PIP is the right tool

A PIP is appropriate when:

• Performance has fallen below documented role expectations across multiple dimensions or over multiple months
• The manager has had at least 2–3 direct feedback conversations (per give-developmental-feedback) without sustained improvement
• The gap is specific and measurable — not a personality or culture fit issue
• HR has been consulted and agrees this is the correct path

A PIP is NOT the right tool when:

• The performance issue is actually a conduct or values issue (handle via HR/legal directly)
• The employee is in a protected category and the performance gap is underdocumented (consult HR first)
• The manager has already privately decided on separation (a PIP used as cover for a predetermined termination is legally and ethically indefensible)
• The performance gap is new (less than 4–6 weeks) and informal feedback hasn't been tried

2. Consult HR before drafting

Before any document is written or conversation held, brief your HR business partner:

• Summary of the performance gap and timeline
• Documentation of prior feedback conversations
• The role's performance expectations and how this employee is falling short

HR will confirm whether a PIP is appropriate, advise on legal requirements in the jurisdiction, help draft the document, and flag any risk factors (protected status, recent complaint, etc.).

Never initiate a PIP conversation with an employee before HR has reviewed the plan.

3. Draft the PIP document

A PIP document must contain:

1. Performance Gap Statement Specific, documented description of the gap — not "attitude issues" but observable behaviors and measurable outcomes:

Current state: In Q1 and Q2, [employee] missed 4 of 6 project delivery 
deadlines by 1–3 weeks. Three client deliverables contained errors that 
required rework (documented in [dates] emails). Code review completion 
rate was 40% vs. team average of 85%.

Expected standard: All project deliverables on schedule or communicated 
48h in advance if at risk. Defect rate at or below team average. Code 
review completion at or above 75%.

2. SMART Improvement Goals 3–5 specific, measurable, achievable goals for the PIP period:

1. Complete all assigned deliverables by the committed date, or communicate 
   a revised date with reason at least 48h before the deadline. No more than 
   1 missed deadline without prior communication during the 60-day PIP period.

2. Reduce defect rate in submitted work to at or below team average (currently 
   team average is 2.1 defects per 1,000 lines; employee's current rate is 6.8).

3. Complete code reviews within 24h of assignment for all PRs assigned during 
   the PIP period. Target: 80% completion rate.

3. Support the Manager Will Provide Concrete manager commitments — not vague encouragement:

- Weekly 30-minute check-in dedicated to PIP progress (scheduled Tuesdays 10am)
- Access to [specific training resource] for [specific skill gap]
- Pairing sessions with [senior engineer] for the first 3 weeks of the PIP
- Manager will provide feedback on submitted work within 24h during PIP period

4. Timeline and Decision Point

PIP period: [start date] to [end date] (typically 30–90 days)
Check-in cadence: Weekly
Decision point: [end date] — if goals are met, PIP concludes and 
employee returns to standard performance management. If goals are not 
met, further action up to and including separation may be taken.

5. Signatures Employee signature acknowledges receipt — not agreement with the content.

4. Deliver the PIP in person

Hold the PIP initiation meeting with the employee and HR present:

1. Acknowledge prior conversations: "We've talked several times about [performance gaps]. Those conversations have not produced the change we needed."
2. State the current situation clearly: "We're at a point where a formal plan is needed."
3. Present the document: "This is a Performance Improvement Plan. I want to walk through it with you."
4. Read through each section together: do not slide the document across; read it aloud and explain each element.
5. Invite questions: "Do you have questions about what's expected or what the support looks like?"
6. Ask them to sign: explain that signing acknowledges receipt, not agreement.
7. Affirm your intent: "I want this to work. I'm committed to giving you the support in this document. The goal is for you to succeed."

This is not a conversation to have via email or asynchronously.

5. Run weekly PIP check-ins

Every week during the PIP period, hold a dedicated 30-minute check-in:

Agenda:

1. Review progress against each PIP goal — specific data, not impressions: "This week you had 3 deliverables due. 2 were on time. 1 was late but you communicated it 48h in advance — that's within the plan."
2. Identify blockers: "What got in the way this week? What do you need from me?"
3. Agree on next week's focus: "Here's what I'll be watching for next week."
4. Document in writing after the meeting: a brief email summarizing what was discussed and the current standing.

Documentation at every check-in is critical. If the PIP ends in separation, these records are the legal defense that the process was genuine.

6. Conclude the PIP

At the end of the PIP period, make the determination against the stated criteria — not holistic impression.

Scenario 1 — Goals met: Hold a close-out conversation: "You met the goals in this plan. The PIP is concluded. Here's what I observed that worked... I want you to sustain this. Going forward, performance will be managed through normal channels."

Remove the PIP from active consideration; it remains in the employee file per HR policy.

Scenario 2 — Goals partially met / borderline: Consult HR. Options include: extend the PIP with modified goals, close with a warning that performance must be maintained, or proceed to separation. The choice depends on the pattern, trajectory, and risk.

Scenario 3 — Goals not met: Proceed to separation per HR and legal guidance. The PIP process is the documented evidence that the employee had a clear, structured, supported opportunity to succeed and did not meet the defined standard.

Rules

• Never initiate a PIP without HR review — employment law, jurisdiction-specific requirements, and organizational policy all intersect; HR must be involved from step 1
• Goals must be measurable — if you cannot collect objective data on whether a goal was met, the goal is not appropriate for a PIP
• Document every check-in in writing — verbal-only PIPs are not defensible; a brief written summary after every check-in is required
• The decision point must be pre-defined — changing the timeline or success criteria mid-PIP without documented reason undermines the integrity of the process and creates legal risk
• A PIP used as cover for a predetermined termination is both unethical and legally risky — if the decision has already been made, consult HR about a separation package instead

Common Mistakes

• PIPs with vague goals: "improve communication" is not a PIP goal; "complete all weekly status updates by Friday 5pm for the duration of the PIP period" is.
• Skipping weekly check-ins: the check-in cadence is what makes a PIP a genuine improvement opportunity, not a paper exercise; missing check-ins suggests the manager was not committed to the improvement, which undermines any subsequent separation.
• Initiating a PIP without prior feedback: a PIP must follow documented attempts at informal feedback; surprising an employee with a PIP without prior conversations is procedurally indefensible and harmful.
• Using "attitude" as a performance gap: personality and interpersonal style are not PIP metrics; convert the observation into behavior ("interrupted teammates 7 times in Monday's meeting") and outcome ("three teammates have escalated to me that they feel unable to complete their work due to interruptions").
• Extending the PIP indefinitely: an indefinite PIP with no decision point is a management avoidance strategy; it harms the employee (uncertainty), the team (watching management avoid accountability), and the organization (legal exposure from inconsistent application).

When NOT to Use

• When the issue is a conduct or values violation — misconduct (harassment, fraud, safety violations) is handled through HR/legal disciplinary processes, not performance improvement plans.
• When the performance gap is due to a documented disability or medical condition — engage HR and legal before any PIP discussion to ensure accommodation obligations are met.
• When a role elimination is the actual business reason — if a position is being eliminated for business reasons, a PIP is not the appropriate vehicle; proceed through your organization's workforce reduction process.
• For a new employee still within a standard probationary period — use direct feedback and close management during probation; a formal PIP may not be appropriate or legally required for probationary separations.