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How to Build a Results-Driven Performance Improvement Plan
Jul 8, 2025
When an employee’s performance starts to slip, it’s easy to feel frustrated, especially in a small business where every role matters. But before jumping to termination, smart employers turn to a proven HR tool: the Performance Improvement Plan (PIP for short).
A well-structured PIP can help employees get back on track, clarify expectations, and protect your business legally. It’s not just a formality, it’s a chance to lead with fairness and professionalism. Let’s dive into what a strong PIP should include and how to implement it effectively in 2025.
What Is a Performance Improvement Plan (PIP)?
A Performance Improvement Plan (PIP) is a formal document that outlines specific areas where an employee’s performance is lacking, along with detailed steps and measurable goals for improvement. It’s usually issued after informal coaching has failed, serving as both a developmental tool and a documented effort to resolve issues before considering more serious action.
Depending on your company’s internal policies, employees on PIPs may be placed in a warning period, although it is important to always frame the PIP in a positive light. We’ll dive deeper into how to do that at the end, but first, let’s talk about how to write up a PIP and important things to include.
Use the following steps to ensure your PIP is comprehensive, clear, and compliant:
Step 1 - Employee Information
Start with the basics:
Employee’s name
Job title
Department
Manager/supervisor’s name
Date the PIP is issued
Why it matters: Clear, structured documentation helps ensure accountability and creates a formal record of the process.
Step 2 - Purpose of the PIP
State the reason for the PIP upfront. Keep it factual, detailed, and free of emotion.
Example: “This Performance Improvement Plan is being issued to address concerns regarding missed deadlines, incomplete client documentation, and lack of responsiveness to team communication.”
Tip: Avoid vague language like “poor attitude.” Stick to observable behaviors and job-related expectations.
Step 3 - Performance Concerns
List specific performance issues, with dates and examples whenever possible.
Example:
“On May 15th and May 22nd, the employee submitted reports missing required data fields.” Don’t write something simple like “The employee is careless.”
Tip: This section should tie directly to the employee’s job description and performance standards.
Step 4 - Performance Expectations and Goals
Clarify what improvement looks like. Include S.M.A.R.T. Goals for the employee: Specific, Measurable, Achievable, Relevant, and Time-bound.
Example: “All monthly reports must be submitted by the 5th of each month with 100% of required data fields completed.”
Include:
The exact expectation the employee needs to meet
The timeframe of the PIP (30, 60, or 90 days is common)
How performance will be evaluated
Step 5 - Support and Resources
PIPs shouldn’t be a punishment, they should be developmental. Always include:
Additional training opportunities
Mentorship or check-in schedules
Access to company policies or tools
Clarification of expectations
Example: "The employee will receive one-on-one training on CRM system updates during the first week of the PIP period."
Step 6 - Timeline and Follow-Up
Define how long the PIP will last and how often progress will be reviewed.
Start and end date of the plan
Weekly or biweekly check-ins
Final evaluation date
Tip: Document each follow-up meeting and summarize progress to date. This creates a paper trail that protects you legally.
Step 7 - Consequences for Non-Improvement
Spell out what will happen if the employee does not meet the goals of the plan.
Example: “Failure to demonstrate consistent improvement by the end of the PIP period may result in further disciplinary action, up to and including termination of employment.”
Make sure this language aligns with your company’s disciplinary policies and Employee Handbook.
Step 8 - Signatures
Both the employee and their manager should sign and date the document. Include a line such as: "Signature indicates acknowledgment of receipt, not necessarily agreement."
If the employee refuses to sign, note that on the form and have a witness present.
From Struggle to Success: Framing the PIP in a Positive Light
Set the Tone from the Start
Begin by expressing that the company values the employee and wants to see them succeed.
Example Opening Statement: “We’re committed to your success and believe you have the potential to meet expectations in your role. This plan is a structured way to give you the clarity, tools, and support you need to succeed.”
Emphasize Growth and Development
Describe the PIP as a development tool—not a disciplinary action.
Example Script: “This isn’t about punishment, it’s about improvement. We want to ensure you have everything you need to be successful in your role.”
Focus on Clarity, Not Criticism
Highlight how the plan will make expectations clearer and more manageable.
Example Script: “Sometimes performance issues are tied to unclear goals. This plan outlines what’s expected in a measurable way, so there’s no confusion about how success will be evaluated.”
Offer Support, Not Just Requirements
Reassure the employee that they won’t be left to figure things out on their own.
Example Script: “We’ll be checking in regularly and providing feedback and resources. We’re always here to provide additional guidance or answer any questions along the way. You won’t go through this alone.”
Keep Language Neutral and Professional
Avoid emotionally charged or judgmental language. Use phrases like:
“Opportunity for improvement”
“Clarifying expectations”
“Support plan for performance growth”
“Aligning efforts with role requirements”
Reinforce the Goal: Mutual Success
End on a hopeful note, reinforcing your investment in their development. “The goal is for you to succeed in your role. We want to work with you to get there.”
Example of Positive Framing in a PIP Document
“This Performance Improvement Plan is designed to support your success in your current role by identifying specific areas for improvement and providing clear expectations, resources, and regular feedback. Our goal is to give you a fair opportunity to succeed and grow with the support of your manager and our team.”
Compliance Tips for 2025
Employment laws are always evolving, so here’s how to keep your PIPs compliant:
Avoid discrimination: Ensure the PIP is based on performance, not protected characteristics (age, race, gender, disability, etc.).
Document and date everything: A PIP is a legal document. Keep copies in the employee’s personnel file.
Consistent application: Apply the same standards to all employees in similar roles to avoid claims of favoritism or bias.
Reasonable accommodations: If an employee discloses a disability, pause the PIP and engage in the interactive process under the ADA.
Remember to Use PIPs as a Tool, Not a Trap
Performance Improvement Plans can feel intimidating, but when used correctly, they empower employees to succeed and show that your business leads with integrity. Whether the outcome is improvement or a transition, a well-executed PIP shows you’ve done your due diligence. Accurate Pay Systems is always here to provide that extra hand of support, reach out to us today for questions and/or guidance on specific situations you may be facing with your employee(s).
