Performance improvement plan letter template
Copy the text below and replace everything in square brackets with your company details.
[Company Name]
[Office Address]
[City], [State] [PIN Code]
Date: [Date]
Ref: [Company Code]/HR/PIP/[Year]/[Number]
Confidential
To
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Performance improvement plan from [Start Date] to [End Date]
Dear [Employee Name],
Over the past [Number] months, [Manager Name] has discussed with you, in meetings on [Dates], that your work in some areas is below the standard expected of a [Designation]. The purpose of this plan is to help you reach that standard, with clear targets and support, over the next [Number] days. This plan is not a disciplinary action.
Areas where improvement is needed
- [Gap 1 with evidence, for example: Average daily ticket closures of 14 in July and August against the team standard of 22, as per the helpdesk report.]
- [Gap 2 with evidence, for example: Six customer escalations in August caused by incorrect first responses, as per the quality audit.]
- [Gap 3, if any.]
Targets for the plan period
- [Target 1: Average of at least 20 ticket closures a day from the fourth week of the plan, measured by the helpdesk report.]
- [Target 2: No more than one escalation a month caused by an incorrect first response, measured by the quality audit.]
- [Target 3, if any, with its measure.]
Support from the company
- [Training, for example: Product refresher training on Date and the advanced module on Date.]
- [Coaching, for example: Two hours a week of paired work with Senior Name.]
- Weekly review meetings with [Manager Name] every [Day] at [Time], with written notes shared after each meeting.
The plan will close with a final review no later than [Final Review Date]. If you meet the targets, the plan will be closed and a letter confirming this will be placed in your file. If you make clear progress but do not fully meet them, the plan may be extended once by up to [Number] days. If the targets are not met, the company may consider further steps, which could include a change of role or ending your employment in line with the terms of your appointment.
Please raise with [Manager Name] or HR at any time anything that affects your work, including workload, tools or personal circumstances. You may add your comments below or in a separate note, which will be kept with this letter.
Yours sincerely,
[Manager Name], [Manager Designation]
Signature: ____________
[HR Name], [HR Designation]
Signature: ____________
Employee acknowledgement and comments
I have received this plan and discussed it with my manager.
Comments: ____________
Name: [Employee Name]
Signature: ____________
Date: ____________
What to include
Gaps backed by evidence
Each gap should point to a report, audit or record, not an impression. Evidence makes the plan objective and helps the employee see exactly what to fix.
Measurable, achievable targets
Set targets that match what others in the same role achieve, with the source of measurement. A target no one on the team meets turns the plan into a formality.
Real support
Training, coaching and weekly reviews with written notes are what make a PIP fair. Without them, the plan reads as a paper trail to an exit already decided.
Fixed period and review dates
State start and end dates and the review rhythm. A short, defined period keeps both sides focused and avoids an open-ended state of uncertainty.
Possible outcomes stated honestly
Say what happens if the targets are met, partly met or not met. The employee deserves to know the stakes, and the company needs them written down before, not after.
Common mistakes to avoid
- Starting a PIP with no earlier feedback, so it comes as a shock.
- Setting targets higher than what the rest of the team achieves.
- Skipping the weekly reviews and judging only at the end.
- Using a PIP for a conduct issue that needs a show cause notice instead.
- Treating the PIP as a decided exit and not offering real support.
Run it in ZeniaHR
In ZeniaHR, HR can open an ad hoc review cycle under Performance for the plan period and record each target as a goal for the employee, typed as a KPI or task with a weight, so the plan's targets are on record alongside the cycle's rating scale. Training named in the plan can be set up in Learning, with the employee enrolled and completion recorded. Keep the signed letter, the weekly notes and the closure or outcome letter in the employee's documents.
See it on your own data
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Book a free demoSee pricingFrequently asked questions
What is a performance improvement plan?
A performance improvement plan, or PIP, is a written plan that gives an employee a fixed period, usually 30 to 90 days, to close specific performance gaps. It lists the gaps with evidence, measurable targets, the support the company will give, review dates and the possible outcomes.
Is a PIP a warning or disciplinary action?
A PIP is a performance tool, not a disciplinary penalty. It deals with work that is below standard, not with misconduct. Conduct issues such as insubordination or dishonesty should be handled through a show cause notice and the conduct rules, not through a PIP.
Can an employee be terminated after a PIP?
If the targets are not met despite fair support, the company may consider a change of role or ending employment in line with the appointment terms, with notice or pay in lieu and settlement of dues. The record of the plan, reviews and outcome must be clear and shared with the employee.
How long should a PIP last?
Long enough for real improvement to show, commonly 30, 60 or 90 days depending on the role and how quickly results can be measured. A sales role with monthly targets may need two cycles; a support role with daily numbers may need less. State the period in the letter.