A performance improvement plan (PIP) sets out, in specific and time-bound terms, what an underperforming employee needs to improve, by when, and what support they will get to do so. It typically follows an appraisal that identified a performance gap.
What it means
A PIP gives the employee a fair, documented chance to improve before more serious consequences follow - if the goals are not met within the timeframe, the PIP record is often what supports a fair disciplinary procedure for poor performance, distinguishing it from misconduct.
Where it fits in
A PIP sits between a poor appraisal outcome and potential disciplinary action, and its goals are usually written with the same SMART discipline as any other performance goal, so progress against it is unambiguous.
Key rules
- PIP = performance improvement plan, addressing underperformance specifically.
- Time-bound, specific, with support offered to help the employee improve.
- Failure to meet it can support a fair disciplinary process for performance.
- Goals within it should follow SMART criteria like any other performance goal.
