How to use performance improvement plans with clarity and care

In an ideal world, your team is made up of dedicated, engaged, and high-performing employees. In reality, though, your team is full of humans – and that means it’s completely natural (and even expected) for employee performance to ebb and flow.

However, when an employee’s performance continues to fall below expectations, and the typical performance management activities have little to no impact, it could be time to put them on an official performance improvement plan (PIP).

Sound intimidating? It can be, especially for your employee, which is why it’s not usually the first thing managers try. With a thoughtful approach, you may be able to avoid creating a performance improvement plan at work altogether. If and when a formal plan feels unavoidable, it’s possible to deliver the news (and the documentation) with empathy and encouragement.

This guide shares everything you need to know about performance improvement plans – including what they are, how they work, how to write them, and when to use them.

One quick note before we dive in: Your company policies and local employment laws shape your performance processes. The guidance here focuses on general practices, so be sure to confirm any required steps, timelines, or documentation with your legal or employee relations partners. This is especially important if you operate across regions.

Key takeaways

• A performance improvement plan (PIP) is a carefully considered step, not a first response. PIPs work best when they include clear expectations, regular feedback, and genuine development support – not when they replace everyday performance management.
• How you deliver a PIP matters. Empathy, clarity, and collaborative conversations can make the difference between an employee disengaging and actually improving.
• When used thoughtfully, PIPs support accountability and progress. They don’t punish or threaten employees.

What is a performance improvement plan?

Here’s a basic performance improvement plan definition: It’s a formal document used to address and manage an employee’s continuous underperformance.

It’s not the first step to take when you notice a drop in performance – rather, it’s something to roll out when all of your other performance management efforts (things like setting clear expectations, tracking goals, and providing regular feedback and development support) haven’t helped the employee meet their performance expectations.

A performance improvement plan outlines the specific performance problem and the steps the employee needs to take to improve. And, while the onus is on the employee to take the necessary action, the most effective performance improvement plans are collaborative. An employee and their manager will work closely together on the documented plan to help get the employee back on track.

It’s best to think of a performance improvement plan as a serious, well-considered step that may have real consequences – not a response to an employee missing one deadline or having a rough week. In many cases, if performance doesn’t improve while on the PIP, it can result in the employee’s termination.

How does a performance improvement plan work?

There’s debate among performance management experts about the effectiveness of performance improvement plans. Some naysayers claim that only 10% to 20% of workers will actually address performance gaps as a result of a PIP (and might just quit instead), while others say closer to a third of employees manage to turn their performance around when PIPs are used early, collaboratively, and with active support and documentation.

Of course, the specifics – and the results – of a performance improvement plan can vary widely. But speaking generally, they can be a helpful and beneficial step for chronically underperforming employees.

A good PIP extends your regular performance conversations by documenting a particular gap and a fair plan for the employee to address it, involving the employee in shaping the steps and support, and keeping progress visible with frequent, constructive check-ins. It accomplishes this by:

• Raising awareness of the performance problem: Clearly naming where performance is falling short, using concrete examples instead of vague or subjective feedback.
• Emphasizing the seriousness of the performance problem: Signaling to the employee that other performance measures haven’t been sufficient, and that you won’t let this slide – improvement is now required.
• Defining clear expectations for improvement: Outlining exactly what needs to change, what success looks like, and how their performance will be evaluated going forward.
• Creating a shared action plan: Documenting the specific steps the employee will take to improve, along with the support, resources, and guidance the manager will provide along the way.
• Setting a defined timeline: Establishing a clear review period so both the employee and manager understand when progress will be assessed.
• Providing documentation: Creating a formal record of expectations, progress, and outcomes to support fairness, consistency, and transparency about any resulting decisions.

The point of a performance improvement plan is to bring structure and clarity to a tough situation – giving employees a fair shot to improve while helping managers address underperformance with thought and care.

When to use a performance improvement plan

Remember, a performance improvement plan is a serious step – not your starting point. Before even considering a PIP, make the most of your current performance management system to give employees clarity, support, and opportunities to improve. This typically includes:

• Clear goal setting so employees understand what good performance looks like (Many organizations miss the mark on this, with only 45% of employees saying they clearly know what’s expected of them at work)
• Regular feedback that’s timely, specific, and actionable
• Skill development opportunities to help employees learn and grow
• Ongoing performance conversations, not just annual performance reviews
• Consistent 1-on-1 meetings with managers to discuss progress and challenges
• Visible investment in employee growth, such as coaching, mentoring, or training

When those systems are working well, many performance issues can be identified and addressed early – way before a formal plan is necessary.

But, if an employee continues to underperform even after you’ve provided clear expectations, coaching, and more, that’s when a PIP starts to make sense. Even at this point, though, many managers prefer to address the issue directly and informally. This usually involves:

• Identifying and defining the performance issue and how it’s impacting the role, team, or organization
• Assessing the gap between expectations and current performance
• Having a candid conversation with the employee and giving them space to respond
• Agreeing on next steps or short-term adjustments to support improvement
• Monitoring progress over time with plenty of follow-up conversations and feedback

It’s only when these steps fail to lead to meaningful or ongoing improvement that a performance improvement plan becomes appropriate.

In other words, the right time to use a performance improvement plan for employees is when all of your other previous performance management efforts – from standard processes to direct conversations – have proven unsuccessful, but there’s still an opportunity for the employee to turn things around.

How long does a performance improvement plan last?

So, how long is a performance improvement plan? It depends. There’s no universal “correct” timeline for a performance improvement plan, because it varies based on factors like the specific role, the nature of the performance issue, and how long it could reasonably take to demonstrate improvement.

That said, performance improvement plans often last between 30 and 90 days. This is enough time for employees to make meaningful changes, while still creating a clear sense of urgency and accountability.

What matters most isn’t the exact number of days but that the timeline is clearly defined, realistic, and communicated upfront – with regular check-ins throughout the process so employees understand how they’re progressing and what comes next.

Benefits of a performance improvement plan

Ultimately, nobody wants to be put on a PIP (or have to put an employee on one). But, while the process is far from fun, it can be a valuable learning opportunity. When it’s used thoughtfully and at the right time, a performance improvement plan can benefit both an individual employee and the organization.

For employees, a PIP provides clarity in an otherwise stressful situation. It removes guesswork about what needs to change and gives them a structured outline for getting back on track. Rather than relying on vague feedback or assumptions, employees know where they stand and what true improvement looks like.

For managers and organizations, a performance improvement plan creates alignment and accountability. It ensures performance issues are addressed fairly, consistently, and with care, while also reducing the risk of rushed or unclear decisions if improvement doesn’t happen right away.

In short, a well-executed PIP supports better outcomes, whether it’s a genuine turnaround in performance or a clearer, more respectful path forward.

How to write a performance improvement plan

Writing a performance improvement plan can feel high-stakes – for both the manager and the employee. The goal isn’t to overwhelm or intimidate, but to create a clear, fair document that sets everyone up for the best possible result.

The exact format of a PIP will vary by organization and location (and we offer a helpful sample performance improvement plan a little later in this guide). However, most effective plans will follow these steps:

1. Clearly describe the performance issue

Start by outlining the specific problem you’re addressing. Focus on observable behaviors or outcomes rather than assumptions, intent, or personality traits. The more concrete and factual this section is, the easier it is for the employee to understand what needs to change.

Example: Over the past two months, four of your projects missed their deadlines, which delayed progress for the entire team.

2. Explain the expected standard

Next, define what acceptable performance looks like in this role. This anchors your plan in expectations (not opinions) and ensures the employee understands the gap between their current performance and what’s actually required.

Example: You’re expected to meet project deadlines as scheduled, with any risks or delays clearly communicated to stakeholders ahead of time.

3. Outline measurable improvement goals

Here’s where you get even more nitty-gritty and spell out the exact improvements the employee is expected to make. Wherever possible, tie these goals to measurable outcomes, milestones, or behaviors so progress can be evaluated objectively.

Example: All assigned projects will be delivered by their agreed deadlines for the duration of the plan.

4. Document support and resources

A strong plan doesn’t place the burden squarely on the employee alone. Be upfront about the support you’ll provide – whether that's coaching, training, clearer prioritization, or more frequent check-ins.

Example: The manager will meet weekly with the employee to review priorities and provide guidance on workload planning.

5. Set a clear timeline and check-in cadence

Include the total length of the PIP, key check-in dates, and when a final assessment or evaluation will happen. Remember, there isn’t a default length for a PIP. Set a timeframe that is reasonable for the desired change and the employee’s role. This gives your plan structure and ensures there are no surprises along the way.

Example: This performance improvement plan will run for 60 days, with progress check-ins every two weeks.

6. Clarify next steps and possible outcomes

Finally, explain what happens if the employee meets expectations – and what happens if they don’t. This isn’t about making threats. It’s about being transparent so everyone understands the next steps and what’s at stake.

Example: If performance improves and expectations are met, the employee will return to standard performance management processes.

How to deliver a performance improvement plan with empathy

Performance improvement plans are a carefully considered step, so they’re not something that every employee has experience with. In 2023, 4.36% of workers were subject to performance actions.

Because performance improvement plans are relatively rare, they may place a heavy emotional burden on the affected employee. Even when a PIP is handled carefully, it often brings anxiety, uncertainty, and fear about what comes next. That’s why how you deliver the plan matters just as much as what’s written in it.

Managers play a critical role in setting the tone. Approaching the conversation with empathy helps preserve trust, keep the discussion productive, and makes it more likely the employee will stay engaged in the improvement process. Here are a few ways to handle the conversation with care:

• Prepare ahead of time: Review the plan thoroughly and anticipate any questions so you can speak clearly and confidently without sounding rushed or defensive.
• Lead with clarity (not blame): Be direct about the performance issue, but avoid judgmental language (“You’re not trying hard enough”) or assumptions about intent (“You don’t take your role seriously”). Focus on facts and expectations.
• Acknowledge that the situation is difficult: Naming that the conversation may feel uncomfortable or stressful can help the employee feel seen and reduce their defensiveness.
• Listen as much as you speak: Give the employee space to share context, concerns, reactions, or questions. Make it clear that their perspective is heard and valued.
• Reinforce support and partnership: Remind them that the plan is designed to help them succeed and that you’re committed to supporting them along the way.
• Be clear about next steps: Wrap up the conversation with a shared understanding of timelines, check-ins, and what happens next so the employee isn’t left guessing.

For many managers, these conversations don’t come naturally – and that’s okay. Culture Amp’s AI Coach can help managers practice difficult interactions ahead of time, refine their approach, and get feedback on their tone and clarity. With the right preparation and support, even the toughest conversations can be handled with confidence, empathy, and care.

What to include in a performance improvement plan

You don’t need a rigid, one-size-fits-all performance improvement plan template to create an effective plan. In fact, because employment laws and best practices vary by country (and even state or region), it’s important to tailor your approach to your local legal requirements and internal policies.

That said, most performance improvement plans include a similar set of core elements. Think of them as guidelines rather than a fixed format. A typical PIP will document:

• Basic details: The nuts and bolts, such as the employee’s name, role, department, manager, and the plan’s start and end dates.
• The performance issue: A clear, factual description of the specific behaviors or outcomes that aren’t meeting expectations.
• Expected performance standards: Goals, responsibilities, and what success looks like in the role.
• Improvement actions: The concrete steps the employee will take to improve, along with any changes in behavior or output that are required.
• Support and resources: The coaching, training, tools, or advice the manager or organization will provide.
• Timeline and check-ins: How long the plan will run and when progress will be reviewed.
• Measurement criteria: How you’ll evaluate improvement and what evidence will be used to monitor progress.
• Possible outcomes: What happens if expectations are met, and what might happen if they’re not.
• Acknowledgement or sign-off: Signatures from both the manager and the employee verifying that the plan has been reviewed and is understood by both parties.

Remember, it’s always smart to work with HR or local experts to ensure your performance plan aligns with relevant employment laws and guidelines in your area.

Performance improvement plan example

In addition to the above template, you may find it helpful to see a sample performance improvement plan. Here’s what the basic template looks like when it’s filled in.

Employee name: Alex Martinez

Role: Customer Support Specialist

Department: Customer Experience

Manager: Jamie Vanlaanen

Plan start date: March 1, 2026

Plan end date: April 30, 2026

Performance details

Performance issues(s): Over the past three months, more than 10 customer support tickets were left without updates for extended periods, resulting in follow-up escalations and low customer satisfaction scores.

Expected performance standard: Customer support tickets are acknowledged within one business day, updated regularly, and resolved or escalated according to team service-level expectations.

Improvement goals:

• Maintain timely communication on all assigned tickets.
• Meet team response-time expectations (respond within 24 hours).

Employee action steps:

• Review assigned tickets at the start and end of each day.
• Add a status update to open tickets at least every 48 hours.
• Flag complex cases immediately when additional support is needed.

Support and resources:

• Weekly 1-on-1 meetings to review ticket management and prioritization.
• Refresher training on internal ticketing workflows and escalation guidelines.

Timeline and check-ins: This performance improvement plan will run for 60 days with progress check-ins every two weeks.

Measurement criteria:

• Ticket response times: Initial customer responses are sent within one business day for at least 95% of tickets.
• Number of escalations: Fewer than two escalations related to delayed or missing communication during the plan period.
• Customer satisfaction feedback: Maintain an average customer satisfaction score of 4.0 or higher (out of 5) on resolved tickets.

Possible outcomes:

If performance improves and expectations are met, Alex will return to standard performance management processes. If expectations are not met, further action will be considered.

Employee signature: Alex Martinez Date: February 27, 2026

Manager signature: Jamie Vanlaanen Date: February 27, 2026

Performance improvement plans: Progress over punishment

While the phrase “performance improvement plan” alone might instill a sense of dread in employees, a PIP isn’t meant to be punitive. It’s meant to create progress when performance is stuck or falling short.

When treated as a collaborative, documented path forward, a PIP brings clarity to a difficult moment, helps employees get a better understanding of expectations, and gives managers a structured way to support improvement.

By focusing on clear goals, ongoing feedback, and empathetic delivery, performance improvement plans become valuable tools – not imminent threats.

Lead with confidence

With Culture Amp’s AI Coach, managers are prepared to handle PIPs (and other tricky conversations) with clarity and confidence.

Learn more

FAQs

Is a performance improvement plan always a step toward termination?

No, not always. While a performance improvement plan can lead to termination if the employee doesn’t take action, its primary purpose is to provide clarity and a structured opportunity for improvement.

Can an employee refuse to go on a performance improvement plan?

An employee can ask questions or raise concerns about a PIP, but in most organizations, participation is a condition of continued employment. That said, performance improvement plan employee rights vary by location, so confirm that your process aligns with local employment laws and internal policies.

What happens after a performance improvement plan ends?

If the employee meets the expectations outlined in the plan, they typically return to regular performance management processes. But if improvement is partial or inconsistent, the plan might be extended or adjusted. If expectations aren’t met, further action – up to and including termination – is often considered.

Can a performance improvement plan be extended?

Yes. A performance improvement plan can be extended if progress is being made, but more time is needed to demonstrate sustained improvement. Extensions should be clearly documented, time-bound, and communicated upfront to avoid confusion or ambiguity.

What’s the difference between a performance improvement plan and regular feedback?

Regular feedback is ongoing, informal, and focused on helping employees grow over time. A performance improvement plan is a formal, structured response to ongoing underperformance when regular feedback and other efforts haven’t been effective.

Can a performance improvement plan be used for behavioral issues (not just performance)?

Yes. While PIPs are often used to address performance gaps, they can also address ongoing behavioral issues – like communication problems or failure to follow policies – when expectations are clear and prior feedback hasn’t led to change.