Performance Improvement Plan
A formal plan outlining steps an underperforming employee must take to improve.
Also: PIP
Definition
A Performance Improvement Plan (PIP) is a structured, time-bound formal document created for employees who are not meeting performance expectations. It outlines specific performance gaps, measurable improvement targets, the support provided by the organization, and consequences if targets are not met within the specified timeframe (typically 30-90 days). PIPs serve both as a corrective tool and as documentation in case disciplinary action or termination becomes necessary.
Example
“After consistent underperformance over two quarters, the team leader was placed on a 60-day PIP with weekly check-ins with her manager and clear weekly targets for customer call quality.”
Usage Examples
- 1
“The team applied performance improvement plan best practices to improve their performance management outcomes significantly.”
- 2
“Understanding performance improvement plan is essential for anyone building a career in HR & People.”
When & How to Use
Use 'Performance Improvement Plan' when working in Performance Management contexts where a performance improvement plan (pip) is a structured, time-bound formal document created for employees who are not meeting performance expectations.
- ▸Applying performance improvement plan principles during a performance management project or initiative
- ▸Explaining performance improvement plan to a junior team member or stakeholder unfamiliar with HR & People
- ▸Evaluating options or proposals using performance improvement plan as a decision-making criterion
Etymology & Origin
The term 'Performance Improvement Plan' derives from Latin roots and entered HR & People professional usage as the field formalised in the 20th century.
History & Evolution
The concept of performance improvement plan has evolved alongside HR & People. Early practitioners relied on informal methods; structured approaches emerged with the professionalisation of performance management in the mid-20th century. Today, performance improvement plan is a standard part of HR & People practice globally.
Synonyms
- corrective action plan
- performance recovery plan
- improvement plan