Performance Improvement Plan Templates Don’t Work — Here’s What Does

Addressing poor performance in the workplace is often a delicate task for managers, especially when handled incorrectly. 

If it results in dismissal due to capability concerns, it can open the door to grievances or even legal disputes.

What Is a Performance Improvement Plan (PIP)?

A Performance Improvement Plan (PIP) is a structured and formal strategy employers use to help underperforming employees get back on track. 

It clearly outlines areas where performance is falling short, explores potential reasons behind the issues, and provides actionable steps for improvement, all within a defined timeframe.

Typically initiated after a performance review or one-on-one meeting, a PIP summarises the employee's past performance, current challenges, and future goals. It's designed to guide employees toward meeting expectations through regular check-ins, support, and measurable objectives.

Although some employees may see a PIP as a warning sign of impending dismissal, its primary purpose is supportive, not punitive. A well-executed PIP reflects the employer's commitment to developing talent and improving performance rather than replacing staff. Replacing an employee can cost a company up to 213% of that employee's annual salary, especially in senior roles, making employee retention through improvement plans both a practical and cost-effective solution.

Ultimately, a PIP is an opportunity for growth, development, and alignment between the employee and organisational goals.

When Are Performance Improvement Plans Used?

Performance Improvement Plans (PIPS) are not intended as punitive tools—they are structured support mechanisms aimed at helping employees meet performance expectations without adding undue stress or pressure.

Before implementing a PIP, it's critical to understand the root cause of the underperformance. Often, external factors such as unrealistic expectations, inadequate resources, or even workplace issues like bullying or harassment may be contributing to the problem. In such cases, addressing the systemic or managerial cause is more appropriate than holding the employee accountable through a PIP.

Even when the issue stems from the employee's performance, it doesn't necessarily reflect laziness or lack of commitment. Poor results could stem from insufficient training, difficulty adapting to new systems or processes, recent health challenges, or personal circumstances. In many of these instances, a simple conversation and informal support may be enough to help the employee improve.

A PIP should only be introduced when informal efforts have failed to produce the desired change, or when the employee's performance gap is significant and persistent. 

For example, a PIP may be warranted if repeated time management issues continue to affect productivity despite previous discussions. Similarly, a formal plan might be necessary if an employee denies any performance issue and refuses to engage constructively.

According to Gallup, only 2 in 10 employees strongly agree that their performance is managed in a way that motivates them to do outstanding work. This highlights the importance of well-structured, supportive performance management tools like PIPs.

Performance Improvement Plans (PIPS) are structured interventions designed to help employees who consistently underperform, whether due to lack of engagement, effort, or external challenges. While a PIP is not meant to punish employees, it is a formal step taken when performance issues persist and informal feedback has not improved. It can be especially effective when an employee shows laziness or ongoing poor performance.

The first step is to determine whether the underperformance stems from personal or professional issues beyond the employee's control, such as poor training, unclear expectations, or workplace dynamics like harassment or micromanagement. However, if no external factors affect performance and the employee refuses to meet expectations, a PIP becomes necessary.

For instance, if an employee consistently misses deadlines, ignores assigned tasks, and shows little interest in improving, a PIP can lay out clear expectations, timelines, and consequences even after one-on-one meetings and reminders. This holds employees accountable and allows them to improve with support and guidance.

PIPS are particularly useful for combating a "coasting" mindset in the workplace. According to a report by Zippia, about 18% of employees are actively disengaged at work, often contributing little to no meaningful output. A well-crafted PIP can help identify these employees and get them back on track or make way for higher-performing talent. 

When Should a Performance Improvement Plan Be Used?

A Performance Improvement Plan (PIP) is most effective when an employee falls short of expectations but shows potential for growth with the proper support. 

PIPS work well when specific, achievable goals can be clearly defined and monitored over time.

They are instrumental in addressing performance-related challenges such as:

• Declining sales or underwhelming results
• Subpar work quality
• Frequent lateness or absenteeism
• Low output or consistent failure to meet deadlines
• Negative feedback from clients or customers
• Not following processes

However, PIPS are not ideal for addressing behavioural or conduct-related issues such as insubordination, harassment, or ethical violations, where corrective action is harder to measure through goal-setting. In such cases, disciplinary procedures or formal warnings may be more appropriate.

It's also important to consider whether the root cause of underperformance is personal rather than professional. 

If an employee is struggling due to mental health issues, family problems, or burnout, solutions like approved time off or wellness support might be more effective than a performance-based plan.

Challenges with Performance Improvement Plans 

Performance Improvement Plans (PIPS) can be valuable tools for helping employees get back on track, but they are not without challenges. One of the most common issues is that employees often perceive a PIP as the first step toward termination rather than a chance to improve. 

This fear can lead to decreased morale, anxiety, or disengagement, which may hinder performance instead of improving it.

Another challenge lies in the clarity of the plan itself. If the goals set within the PIP are vague, unrealistic, or poorly structured, the employee may struggle to understand what is expected of them. 

Without clearly defined, measurable, and achievable objectives, a PIP can feel more like a trap than a support mechanism. 

Also, PIPS often fail when managers do not provide consistent support throughout the process. Employees need regular feedback, encouragement, and access to resources to make meaningful progress; otherwise, the plan becomes an exercise in box-ticking rather than genuine development.

A one-size-fits-all approach can also be problematic. Each employee's situation is different, and applying a generic plan without considering the individual's specific challenges or context can limit effectiveness. 

Furthermore, if the performance issues stem from deeper problems—such as personal hardship, mental health concerns, or workplace dysfunction—a PIP focusing solely on surface-level performance may miss the real cause and ultimately fail to bring lasting improvement.

Finally, there are legal and compliance risks to consider. If a PIP appears biased, lacks proper documentation, or is implemented in a way that could be seen as punitive or discriminatory, it can expose the organisation to complaints or legal claims. 

To avoid this, the process must be fair, well-communicated, and supported by thorough documentation at every stage.

Work Performance Improvement Example

To better understand how Performance Improvement Plans (PIPs) operate in real-world scenarios, it's helpful to look at work performance improvement examples that reveal both their potential benefits and their pitfalls. 

While PIPs are often designed to support employees in overcoming challenges, they can also be misused—sometimes unintentionally—as tools for forced exits. 

The following case highlights an employee's firsthand experience with a PIP that felt more punitive than constructive, offering valuable insight into how the process can go wrong and what others might learn from it.

4 Performance Improvement Plan Examples

Performance Improvement Plans (PIPs) should be tailored to specific issues and individual circumstances. 

Below are four common performance issues and sample PIP outlines to guide the process: 

1. Low Work Output

Issue: The employee is consistently completing less work than expected.
Sample PIP:

• Objective: Increase output to meet weekly targets within 30 days.
• Action Steps: Provide task prioritization training; introduce weekly planning meetings.
• Support: Weekly check-ins with the manager; access to a productivity coach.
• Review Dates: Bi-weekly progress assessments.
• Success Criteria: Achieving 90% of weekly productivity targets for 4 consecutive weeks.

2. Poor Quality of Work

Issue: Work contains frequent errors and does not meet required standards.
Sample PIP:

• Objective: Improve accuracy and meet quality benchmarks within 60 days.
• Action Steps: Complete skills refresher training; implement peer review process.
• Support: Assigned mentor to review initial tasks.
• Review Dates: Weekly quality audits.
• Success Criteria: Less than 2 errors per project and consistently meeting quality standards.

3. Unprofessional Behavior

Issue: The employee displays inappropriate communication or behavior in the workplace.
Sample PIP:

• Objective: Demonstrate consistent professional behavior in all interactions.
• Action Steps: Attend communication and workplace conduct training.
• Support: Bi-weekly coaching sessions.
• Review Dates: Monthly behavior evaluations.
• Success Criteria: No further complaints or incidents for 60 days.

4. Time Management / Missed Deadlines

Issue: Employee regularly misses deadlines and struggles with task prioritization.
Sample PIP:

• Objective: Complete assignments by deadline over the next 45 days.
• Action Steps: Use project management tools; attend time management training.
• Support: Manager reviews workload every Monday.
• Review Dates: Weekly deadline review.
• Success Criteria: On-time completion of 95% of tasks for 6 consecutive weeks.

A Real-Life Experience: When a PIP Becomes a Path to Exit

In one real-world example, an employee shared their experience of being placed on a Performance Improvement Plan (PIP) under circumstances they felt were unfair and demotivating. 

After working successfully in their role for some time, the individual was assigned to a new manager—someone with noticeably less experience and a limited understanding of the team dynamics. 

Soon after the managerial change, the employee received negative feedback from an IT manager, which they believed was entirely fabricated and misleading.

Despite raising concerns about the validity of the feedback, the new manager chose to move forward with placing the employee on a PIP without conducting a thorough or balanced review. 

According to the employee, the manager showed little interest in hearing their side of the story, and the plan itself felt more like a formality to push them out rather than a genuine attempt to support their improvement.

Realizing the situation was unlikely to change, and feeling cornered by the unfair process, the employee accepted an alternative offer from the HR department and chose to leave the company voluntarily. 

Reflecting on the experience, they described the PIP process as a thinly veiled off-ramp used to exit employees under the guise of development. They say, "Once you're on a PIP, it's incredibly difficult to turn things around, especially if it's not initiated in good faith."

Their advice to others facing a similar situation is clear. 

If you find yourself on a PIP and believe it's being used to force you out rather than support you, it may be healthier to start looking for a new opportunity elsewhere. 

In some cases, staying can do more harm than good.

Benefits of a Performance Improvement Plan

Although a Performance Improvement Plan (PIP) primarily addresses specific performance issues, its impact can extend beyond fixing short-term problems. 

A PIP can drive positive organizational change when implemented with care and intention. 

Here are some of the broader benefits:

• Enhanced employee experience—When managers collaborate with employees to set clear, achievable goals, it fosters a more supportive work environment. This helps employees feel valued and increases their motivation, pride in their work, and overall job satisfaction.
• Closing skill gaps—Many performance challenges stem from a lack of training rather than a poor attitude. A PIP can identify gaps in knowledge or skills and offer a structured path to improvement through targeted training and learning opportunities.
• Improved communication and relationships - The PIP process encourages honest conversations between employees and managers. This transparency can lead to stronger relationships, trust, and a more engaged workforce.
• Higher employee retention - When a PIP is framed positively, as a tool for support rather than punishment, employees are more likely to feel that the organization is invested in their success. This sense of support can lead to stronger loyalty and lower turnover.
• Increased accountability and clarity - PIPS provide structure and clear expectations, which help employees better understand what is required of them and how to meet those expectations. This clarity often results in improved focus and accountability.

A thoughtfully executed performance improvement plan addresses immediate concerns and contributes to long-term employee growth, engagement, and organizational stability.

How to Develop a Performance Improvement Plan

There is no one-size-fits-all structure for creating a Performance Improvement Plan (PIP), as the format can vary depending on an organisation's culture and working environment. 

However, most employers benefit from using a standardised template to ensure consistency across departments and teams. 

This helps line managers and team leaders follow a transparent, fair process for all employees.

The most effective PIPS are developed through employer and employee collaboration. Rather than imposing a fixed plan, it is essential to involve the employee in identifying the issues affecting their performance and agreeing on practical steps to move forward. Every individual's circumstances differ—what works for one person may not suit another. Performance problems can stem from various sources, such as personal difficulties impacting punctuality or internal issues like inadequate training or sudden organisational changes.

A strong PIP must be realistic and achievable. It should include clear goals within a manageable timeframe. Breaking down larger objectives into smaller, measurable milestones can help provide structure and make progress feel more attainable. These goals should directly relate to the areas of concern, with examples provided to clarify what improvement looks like and which behaviours or results need to change.

Success criteria will vary depending on the employee and situation. 

This could involve completing specific training, hitting deadlines, or improving work quality. Crucially, progress shouldn't fall solely on the employee's shoulders—support must be built into the plan. 

Employers should outline the resources they will provide, such as online learning tools, mentorship, or regular check-ins with a manager.

Here are the essential components of a performance improvement plan that can be adapted to fit individual needs:

• Identify the key performance concerns
• Explore potential causes behind the underperformance
• Define the areas for improvement and the expected standards
• Set a reasonable timeline, including any short-term milestones
• Outline the support, tools, or training the employee will receive
• Schedule regular review meetings to monitor progress

Performance Improvement Plan Template Download

To help you implement performance plans effectively, we've created a selection of ready-to-use resources.

Below is a section where we've provided a few Performance Improvement Plan template Word documents that you can download, customize, and use for your organization. 

Each template is designed to guide managers through the process with clear structure, measurable goals, and built-in support steps—making it easier to address performance concerns in a fair and constructive way. 

Whether you're new to PIPs or looking to standardize your process, these templates offer a practical starting point.

Best Practice Advice for Employers

Employers, managers, and team leaders should create a supportive, constructive environment to ensure a performance improvement plan (PIP) achieves its intended outcome. 

While dismissal may still be an option if no progress is made, it should always be the last resort. The fundamental goal of a PIP is to help employees succeed, not to manage them out.

Here are some best practice recommendations to help make PIPS effective:

• Understand the root cause - Take the time to uncover why the employee is struggling. Performance issues often have underlying causes such as personal challenges, stress, or a lack of clarity. Employees may be hesitant to share openly, so it's vital to approach conversations with empathy, not judgment.
• Involve the employee in the process. Ask the employee for their perspective on what's not working, where they feel they could improve, and what support might help. When employees have a say in shaping the plan, they're more likely to view it as a growth opportunity rather than a disciplinary measure.
• Reinforce the supportive purpose of the PIP - Emphasise that the PIP is meant to help them succeed. Framing the plan as a career development tool—not a threat—can motivate employees and show them they're valued. However, it's also essential to be transparent about potential outcomes if no progress is made.
• Set realistic and achievable goals - Avoid overwhelming employees with unrealistic expectations. Break larger goals into smaller, manageable milestones. This builds confidence and creates a sense of progress. Allow the employee to contribute ideas for goals they feel capable of meeting.
• Monitor progress and offer feedback regularly - Check in to assess performance, encourage, and offer praise when improvements are made. If challenges remain, use the opportunity to explore additional support options and adjust the plan as needed.
• Be clear and structured in every review - Communicate exactly what's expected next and when at every check-in. Uncertainty can lead to anxiety and hinder progress. The PIP should have a clearly defined start and end date, with each step clearly outlined.
• Ensure HR is actively involved in the process—initiating a Performance Improvement Plan typically requires HR oversight to maintain fairness and compliance. Their involvement helps guarantee that the correct procedures are followed and that the plan is implemented in a way that is consistent, transparent, and legally sound for the employee.

Finally, once the plan concludes and the employee has demonstrated meaningful progress, it's essential to provide closure and encouragement. 

Let them know the issue is resolved and that their future with the company is on solid ground. 

This reassurance helps them move forward with confidence and renewed commitment.

What to Do If a PIP Doesn't Work

Despite the best intentions and efforts, not all Performance Improvement Plans (PIPs) lead to the desired outcome. Sometimes, even with clear goals, consistent support, and regular feedback, an employee may continue to fall short of expectations. When this happens, employers must approach the next steps carefully, ensuring fairness, transparency, and legal compliance throughout the process.

First, it's important to review the PIP thoroughly. Was it implemented correctly? Were the goals realistic? Did the employee receive enough support and time to improve? If the plan lacked clarity or support, consider whether a revised plan or additional resources might help before moving toward more serious action.

If it's clear that the employee has not made sufficient progress, the employer may need to initiate formal disciplinary or capability procedures. This might involve a meeting to discuss the outcome of the PIP, giving the employee a chance to explain any ongoing challenges and present any mitigating factors. Documentation from the PIP process will be crucial here, as it demonstrates that the employer acted fairly and gave the employee a genuine opportunity to improve.

In cases where continued employment is no longer viable, termination may be necessary. However, this should always be handled with sensitivity and professionalism. A well-documented process can help reduce legal risk and protect the business against claims of unfair dismissal.

It's important to reflect on the situation as an organization. If multiple PIPs are failing, it may indicate broader issues with training, communication, or management practices. Learning from these experiences can help strengthen performance management strategies in the future.

While a failed PIP can be disappointing, handling it with care ensures that both the employee and the business are treated fairly and respectfully.

Tips for a successful PIP

To run an effective and successful performance improvement plan (PIP), there are several key principles to keep in mind:

• Uncover the underlying issue - Start by identifying the true cause of the performance problem. This involves analyzing the employee's work habits, skills, and overall work environment. Whether the issue stems from lack of training, personal challenges, or unclear expectations, your plan should be built around resolving that root cause—not just addressing the symptoms.
• Make it a collaborative process - Involve the employee from the beginning. Work together to shape the PIP so they fully understand what's expected of them, what success looks like, and what support will be available. When employees actively contribute to the process, they're more likely to feel accountable and engaged in their own improvement.
• Define clear, measurable goals - Establish SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound. These should be well-communicated and easily understood. Every discussion around the PIP should be anchored to these goals to ensure consistency and focus.
• Offer continuous support and feedback - Performance improvement isn't a one-time conversation. Managers should provide frequent, constructive feedback and check-ins throughout the process. Coaching and mentoring can also help reinforce positive habits and guide progress in a supportive way.
• Track and document progress - Maintaining detailed records of the employee's performance during the PIP is essential. This not only helps assess the effectiveness of the plan but also ensures there's a fair and transparent record of what took place.
• Celebrate progress - Acknowledging small wins and improvements along the way reinforces effort and encourages ongoing growth. Recognition can go a long way in helping employees maintain momentum and stay motivated.

Unlock High Performance with AgilityPortal

Don't wait for performance issues to escalate—AgilityPortal helps you drive continuous improvement with real-time feedback, goal tracking, employee recognition, and more, all in one connected platform designed to keep your workforce engaged and performing at their best.

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