What it means
A manager says an employee is 'not performing', but that phrase does not tell the person what to improve; a PIP turns a genuine capability concern into observable expectations and a chance to address it. Start with evidence: identify particular missed tasks, quality issues or deadlines and compare them with the role's actual standards.
Check whether the issue is capability, conduct, workload or missing support, since the UK service Acas distinguishes ability from behaviour and advises help such as coaching and training for capability problems. Use a conversation before drafting, asking the employee what they understand, what blocked the work and what support would help, because there may be missing access, unclear priorities, health considerations or a changed role.
A PIP cannot fix an impossible workload by telling the employee to try harder. State a small number of specific goals: 'Improve communication' is vague, whereas 'send a weekly project status by Friday 3 pm with blockers and owners' is checkable, and goals should match the employee's duties and available resources.
Set a reasonable period and review dates, since some tasks can be assessed after several cycles while one complex project may take longer. Describe support in the plan: training, mentoring, revised instructions or access to a tool should have an owner and date, because a plan that lists goals but withholds the means to meet them is not a fair chance to improve.
The CIPD's PIP template prompts managers to record the gap, objectives, learning, other assistance, monitoring, feedback and timescale. Agree how progress is measured, such as sample quality, on-time completion or customer outcomes, and do not change a goal halfway through without explaining and documenting the reason.
Give feedback during the period, because waiting until the final meeting to reveal that work was below standard wastes the chance to correct it; record examples and acknowledge improvement as well as remaining gaps. State possible outcomes without making a decision in advance: successful completion, further support, a reasonable extension or formal employment action may follow under policy and law, and a person should not be told improvement is possible while dismissal is secretly treated as settled.
Compare treatment with similar cases, because managers should avoid a stricter standard for one worker because of personality, leave, disability or protected activity. Where adjustments may be required, obtain local HR and legal advice.
Keep the document confidential, sharing it with the employee, manager and authorised HR staff rather than the entire team, and remember that a PIP should not replace routine management, since a manager ought to give clear tasks and feedback before a formal plan becomes necessary. At the final review, compare actual work with the written goals and the support delivered, and document the employee's response and any unresolved factual disagreement.
If progress is partial, consider whether more time or different support is justified; Acas notes that an extension can be a possible outcome, while dismissal should follow a fair procedure and be a last resort under its UK guidance. Use plain language and ask the employee to confirm receipt, keeping acknowledgement separate from agreement with every allegation; for a business owner, the best PIP is a real improvement tool, grounded in evidence, supported and fairly evaluated.
In practice
Real-world examples.
Example
A support agent receives a target for accurate case notes, weekly review and coaching on the system that caused errors.
Example
A sales target is revised after the team finds the employee had no assigned territory for half the review period.
Example
At the final meeting, the manager compares examples with written goals and records both improvement and remaining gaps.
Formula
Calculation
Illustrative goal completion = goals met by the agreed review date / goals agreed, with quality and circumstances considered. If 3 of 4 are met, the ratio is 75%; it does not dictate an employment decision.Case study
Seen in the real world.
This entirely fictional example concerns Cedar Support, an invented service team. A manager found repeated errors in case notes and initially planned to write 'be more careful'. HR helped define two observable standards and discovered the worker lacked training on a new system.
The company provided training and weekly samples, then reviewed progress against the agreed standards. One issue remained, so it considered support and timing rather than declaring a predetermined outcome. The example does not give legal advice on dismissal.
Watch out
Common mistakes.
- Using vague criticism without evidence, measurable goals or a reasonable period.
- Promising training and feedback but failing to provide them before judging the employee.
- Treating the PIP as an automatic dismissal notice or ignoring workload and required adjustments.
Questions
People also ask.
What is a PIP?
It is a written plan with specific improvement goals, support, timescale and review points.
How long does it last?
There is no universal length; it should be reasonable for the tasks and applicable policy.
What happens after?
Review evidence fairly. The result may be completion, extension, further support or action under local law and policy.
From the founder's library

Take it further with the book.
Build your financial confidence beyond this definition. Shihan's full-length guide, Accounting Fundamentals, takes the same plain-English approach and turns it into a complete, practical playbook for non-finance managers, business owners and students - with chapter-end quiz answers and presentation slides included.
25% off with code MMHQ25, applied at checkout. Priced in USD - checkout may show the equivalent in your local currency.
View the book and save 25%