Performance improvement plans (PIPs) aren’t designed to catch staff out. They’re there to support employees through challenging periods in a structured way, making things fairer for everyone. Use this easy-to-follow guide to find key info on PIPs, access PIP templates, and even create your own.
It’s not uncommon for staff to experience occasional performance dips at work. But when challenges persist over a long period of time and verbal interventions make little difference, a performance improvement plan (PIP) can help to overcome issues and turn things around.
Although there’s no set structure for PIPs, most include:
If you’re a manager or team leader and an employee is underperforming, try to show encouragement and support. Receiving a PIP can be stressful, so it’s important to avoid berating your employee or expressing annoyance, which can make the situation worse.
Research from Gallup indicates that taking a strength-based approach can dramatically improve employee engagement. So, instead of focusing solely on criticism, try to lift them up and show confidence in their potential to change. This will improve their chances of success.
Side note: PIP can also be an abbreviation for personal independence payment, a government benefit for those with disabilities and long-term health conditions. You can find out more about it in our recent blog on LCWRA and PIP.
Although they require a little effort, performance improvement plans can be incredibly beneficial for both staff and their managers.
As a manager, a PIP can help you to:
Track progress and stay organised: Having things written down and formalised makes it much easier to track progress and share information with other staff when needed. A PIP can also act as evidence in the unlikely event that an employee makes an unfair dismissal claim.
Retain staff: Although PIPs should be issued prior to performance-related dismissal, they shouldn’t be viewed simply as ‘the final step before termination’. Instead, they should be seen as an opportunity to nurture and protect talent. If you make this the objective and focus on the positive aspects your employees can bring, they’ll feel more valued and be in a better position to turn things around.
Manage overall company/department performance: A PIP allows you to identify how an individual’s underperformance may be affecting team dynamics, morale, and output. By formalising the issue, you can better evaluate its ripple effects across the department or company and take steps to improve overall productivity.
As an employee, a PIP can help you to:
Take accountability: As an employee, you have a duty to undertake certain responsibilities for your employer. Having a PIP helps to remind you what these responsibilities are and gives you a chance to show your manager that you can take accountability and prove to the company that you are capable.
Become a better employee: Following a PIP can help you to recognise strengths that you didn’t realise you had within you. Quite often, being pushed to make an effort and take on challenges can lead to great rewards. If you try hard to improve, you may come away from the process with more confidence about what you can achieve and what you’d like to achieve next.
Before implementing a PIP, an employer must ensure that there aren’t any hidden issues causing the employee’s underperformance. If a staff member is facing issues at home, struggling with neurodivergence-related difficulties, or has worries or concerns affecting performance, it’s vital to discuss these issues first. If available, an Employee Assistance Programme can be really helpful for this.
It’s also typical for there to be a number of informal warnings prior to the creation of a PIP. This ensures the employee is aware of any problems and can take steps to put things right before a formal process is implemented.
If it’s decided that a PIP is the best course of action, a manager or team leader should sit down with the employee and clearly explain why they’re being given a PIP, how often they need to review progress, and try to answer any questions.
After everything has been reviewed, it will be up to the employer to decide whether the employee has met the targets outlined within their performance plan. If all has gone well, the employer may decide to keep an eye on performance but take no further action or extend the deadline if small points have been missed.
If the employee fails to meet their targets, the employer may decide to escalate things by taking disciplinary action, dismissing the employee, demoting them, or terminating their employment. The action taken must be:
If you’re creating a performance improvement plan for the first time, it’s best to stick to a simple structure that’s easy for both you and your employee to follow. As well as the points we mentioned earlier on, be sure to leave room for names, dates, job titles, and departments.
Not feeling confident about creating your own PIP? Use our simple example template as a guide.
Employee Name:
Job Title:
Department:
Manager/Supervisor:
Date Plan Issued:
Summarise the specific areas where performance needs to improve. Be clear, factual, and objective.
Describe the expected standards of performance or behaviour for this role.
List specific goals and the actions needed to achieve them. (See helpful tips for setting SMART goals in our guide to PDPs.)
Area for Improvement:
Goal/Expectation:
Actions to Achieve Goal:
Success Criteria:
Repeat as needed for other goals.
List the support, training, or resources the company will provide to help the employee succeed.
Specify deadlines for each goal/action and the overall review dates.
Goal/Action:
Deadline/Review Date:
Repeat as needed for other goals.
Outline when and how progress will be reviewed (e.g. weekly meetings, feedback sessions).
Clearly state the potential outcomes if expectations are not met (e.g. further disciplinary action, demotion, termination).
I acknowledge that I have discussed this Performance Improvement Plan and understand the expectations and support provided.
Employee Signature:
Date:
Manager/Supervisor Signature:
Date:
If you’re a manager supporting a staff member through a PIP, remember to be patient and understanding. The overall goal is progress, not punishment. Throughout your employee’s PIP process, be sure to:
Look after yourself, too. Issuing a PIP can be difficult, particularly if you’re fond of your employee and otherwise have a positive relationship. If you are confident a PIP is needed, try to set clear boundaries and remind yourself of the bigger impact on the company. Making these types of decisions is never easy, but it’s important to be fair, consistent, and focused on long-term outcomes.
In most UK workplaces, a PIP usually lasts one to three months. For smaller performance gaps it might be shorter (around 30 days), whereas more complex roles may require 60 or even 90 days for PIP completion.
No, a PIP isn’t the same as probation. Probation is a set trial period at the start of employment, whereas a PIP is a formal improvement process that employees can be placed on at any time, whether you’re past probation or not.
You can’t ‘appeal’ a PIP like a court ruling, but it can be challenged through an employer’s grievance or appeal procedure. Normally, an employee will need to ask for a review meeting, share any evidence they’ve got, and raise any concerns about fairness or clarity in the plan.
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