How to Write a Performance Improvement Plan That Actually Works

A performance improvement plan, or PIP, is a formal document that outlines specific performance problems, what improvement looks like, what support the employee will receive, and what the consequences are if things don’t improve. Done right, a PIP gives an employee a genuine shot at turning things around. Done wrong, it’s a paper exercise that creates legal risk and destroys trust.

Before you write anything: is a PIP the right tool?

A PIP is the right tool when an employee is underperforming in a specific, measurable way and you genuinely believe they can improve with structure and support. It is not the right tool for misconduct (use a written warning), personal conflicts between employees (use mediation), or when you’ve already decided to let the person go. Using a PIP as pretext for a predetermined termination creates exactly the kind of paper trail that plaintiffs’ attorneys use.

The six elements every PIP must have

1. The specific performance issue. Not “attitude problems” — concrete and observable. “In Q3, the employee missed 4 of 6 project deadlines by more than 5 business days.” If you can’t describe the problem in measurable terms, you don’t have enough documentation to start a PIP.

2. The expected standard. What does success look like, specifically enough that both parties and a third-party reviewer could evaluate whether it was met.

3. The action steps. What will the employee do differently, and what support will the company provide. This is where most PIPs are weakest — they state what the employee needs to achieve without saying how they’ll get there.

4. The timeline. Standard timelines run 30 to 90 days. 30 days for clear measurable issues, 60–90 for complex behavior change. Build in formal check-in dates.

5. The consequences. Be clear: “Failure to meet the expectations outlined in this plan may result in further disciplinary action up to and including termination.” Do not soften this. The employee needs to understand what’s at stake.

6. Signatures. Both manager and employee sign. Signing does not mean the employee agrees with the assessment — it means they received and read it. If an employee refuses to sign, document the refusal in writing with a witness.

The check-in process matters as much as the document

Schedule formal check-ins at least every two weeks during the PIP period. Document what was discussed and what progress was observed. If you can’t commit to that cadence, don’t start the PIP — a PIP that starts and then gets ignored signals the company isn’t serious and creates a documentation gap if you eventually need to act.

After the PIP: what comes next

One of three things happens: the employee clearly improved and you close the PIP with a positive note; the employee partially improved and you extend or move to a final written warning; the employee has not improved and you move to termination with documentation that fully supports the decision. Standard practice is to monitor performance for 12 months after a completed PIP.