FAQs
What is a PIP?
A Performance Improvement Plan (PIP) is a formal document a manager uses to outline specific areas where an employee needs to improve their performance, and by how much. It includes clear goals, timelines, and support mechanisms to help the employee succeed. A PIP includes a clear warning that the employee's failure to improve performance to the stated level will lead to the employee’s termination. For this reason, PIPs are associated with significant fear and stress. It’s also why the PIP process must be fair -- and be seen to be fair.
Does a PIP lead to termination?
A PIP does not always lead to termination of employment, but it contains the risk of termination if the employee fails to meet the outlined goals. It should be seen primarily as a late-stage tool to help struggling employees improve.
What should happen before a PIP is started?
Before a manager places an employee on a PIP, that manager should have already had clear, performance related conversations with that employee, making it clear that performance is a problem, and detailing exactly what's not working and what needs to improve.
What should happen at the beginning of a PIP?
Once a PIP has been decided upon, the manager should conduct a formal Kickoff Meeting, at which the manager will meet with the employee (and possibly with an HR person, union rep, or other support person present), to inform the employee that they are being placed on a PIP, to explain the reasons why, to describe the terms of the PIP including the needed level of performance, and what tools and resources have been made available to the employee to help them meet or exceed the terms of the PIP.
What should happen at the end of a PIP?
Every PIP should end with a formal Closure Meeting to close the PIP process. At that meeting, the manager should inform the employee whether they:
have improved performance enough to meet or exceed the terms of the PIP, such that the threat of being terminated for nonperformance ends;
have improved performance enough to give the manager confidence that the employee's performance is heading in the right direction, but has not yet passed the performance threshold to end the PIP, and thus the employee will remain on the PIP for another specific period of time (such as 90 days); or
the employee has failed to improve performance enough to meet the terms of the PIP and are therefore terminated immediately for nonperformance.
What should a PIP contain?
At a minimum, a PIP should contain:
A description of the employee's role and its minimum acceptable performance level
A description of the employee's current performance, documenting that at least some aspects of the role's performance are indeed below the minimum acceptable level
A timeline (usually 30 to 90 days) for improvement
A schedule of check-in meetings for the manager to review the employee's performance improvement during the PIP
An ideal PIP will also contain:
A description of those aspects of the employee's current performance that are acceptable and that must remain above a certain level during the PIP
A description of the role's internal or external customers and what is required to delight those customers
Clear metrics that define and measure the key aspects of performance
A clear threshold for each role performance measure, delineating between [a] excellent performance, [b] acceptable performance, and [c] unacceptable performance
Reference to a set of process steps for each performance area that, if the employee follows those steps successfully, should result in acceptable or excellent performance
Can I be put on a PIP without warning?
Sort of. This varies by location, but best practice is for you to be warned about your performance before you're placed on a PIP. If you've been warned that your performance is below par, that's all the warning you should expect before being placed on a PIP.
If the PIP comes as a complete surprise to you, that's a sign that either you've been ignoring verbal feedback about your performance, or that your manager is uncomfortable (or inept) regarding performance conversations.
In some circumstances, such as a unionized workforce, other rules may apply.
If I get put on a PIP, what should I do?
Assume that the PIP is being done in good faith, and your employer really does want you to improve. Given the high costs of recruiting and onboarding a new person, your employer will be better off if they can raise your performance rather than replace you.
Study the PIP carefully. Ask clarifying questions if any part of it seems unclear.
My PIP is unfair. What should I do?
If you're convinced your PIP is unfair, you're well within your rights to talk about it with a union rep (if you're part of a union) and/or an employment attorney. A truly unfair PIP could allow you to sue your employer for wrongful termination -- that's a very serious step, so please seek professional guidance, and do not delay.
If you'd like The PIP Guy's candid opinion of your PIP, just email it to me along with a short cover note explaining where you work and what you do. I'll reply with a scheduling link so we can talk about it. This is a free, no-obligation 25-minute conversation. I DO NOT GIVE LEGAL ADVICE.