How to create a performance improvement plan

When a PIP is the right tool

Use a PIP when informal feedback has already been given, the gap has continued for weeks or months, and the problem is performance, not conduct. Misconduct, such as falsified records or harassment, goes through the disciplinary process instead. Probationers are handled through the probation review. Before writing a PIP, check the basics: was the expectation clear, did the employee have the tools and training, and is anything else going on, such as a health issue or a change of manager, that explains the drop?

What a PIP must contain

The written plan is what both sides will refer back to, so every element must be specific enough that an outsider could tell, at the end, whether the plan succeeded. Vague plans cannot be passed or failed, only argued about.

• The performance gaps, with dates and evidence
• Two to four measurable targets
• The duration: 30, 60 or 90 days, depending on how quickly results show
• Support: training, coaching, shadowing or tools
• The check-in schedule and who attends
• How progress will be measured and from which data
• Possible outcomes at the end
• Signatures of the employee, the manager and HR

Worked example: a 60-day plan for an inside sales executive

Sneha is an inside sales executive at an education company in Noida. Over the last quarter she booked about 22 qualified demos a month against a team standard of 40, and converted 4 percent of demos to sales against a team average of 8 percent. Her 60-day PIP sets three targets: at least 35 qualified demos in each month, conversion of at least 6 percent in month two, and CRM notes updated the same day for every call. Support: two call-shadowing sessions a week with a senior executive, a product refresher course and weekly coaching with her manager. Check-ins every Friday.

Running check-ins and closing the plan

Hold the weekly check-in without fail, for about twenty minutes, and write down progress against each target, the support given and any new obstacles. Adjust the support if something is not working, not the targets. At the end, decide one of three outcomes. If the targets are met, close the plan in writing and keep coaching. If they are partly met with clear progress, a short, single extension is fair. If they are not met, move to the next step under your policy, such as a role change or separation, following your standing orders and the appointment letter.

Step by step

1. Confirm the gap with evidence. Collect data for the last two or three months that shows the gap against a clear standard, and confirm that informal feedback was already given.
2. Rule out other causes. Check tools, training, workload, health and recent changes in role or manager. Fix those first if they explain the problem.
3. Write measurable targets. Set two to four targets that are realistic for the duration and tied to the core of the job, with the data source for each.
4. Agree the support and schedule. List the coaching, shadowing and training the company will give. In ZeniaHR, enrol the employee in the relevant program in Learning and mark it complete when done.
5. Hold the PIP meeting with HR. Explain the gap, the targets, the support and the possible outcomes. Answer questions and get the employee's signed acknowledgement.
6. Record the plan. In ZeniaHR, set up an ad hoc review cycle for the plan and add each target as a KPI or task goal with a weight, so the plan's terms are on record.
7. Check in every week. Review progress on each target, note support given and obstacles, and share the notes with the employee the same day.
8. Close the plan with a written outcome. At the end date, meet, state the outcome and the reasons, and issue a letter recording it.

Frequently asked questions