How to Write an Effective Performance Improvement Plan Template?

Highlights

• A performance improvement plan is a structured document outlining performance issues and improvement steps.
• PIPs help employees identify skill gaps, set clear goals, and improve performance in a structured way.
• A PIP should be used after repeated performance issues and when improvement is realistically achievable.
• PIPs are unsuitable for serious violations, personal conflicts, or long-term underperformance.
• Tracking PIP success with metrics like feedback, training evaluations, and performance reviews ensures effectiveness.

If an employee struggles with performance repeatedly, a Performance Improvement Plan (PIP) can help them get back on track. Also called a performance action plan, this tool guides employees on what they must do to meet expectations.

Below, you'll find tips on when and how to use a PIP, key elements to include, ways to track progress, and a ready-to-use performance improvement plan template to help you create your own.

What Is a Performance Improvement Plan Template?

A performance improvement plan template is a structured document that helps employers outline an employee’s performance issues and create a clear improvement plan. It typically includes:

• A summary of performance concerns (e.g., productivity, skills, or behavior).
• Specific goals the employee needs to achieve.
• A timeline for improvement (usually 30, 60, or 90 days).
• Support or resources available to help the employee succeed.
• Consequences if expectations are not met.

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Why Use a Template For Performance Improvement Plan?

Many see a performance improvement plan as a last step before termination, but it can also be a valuable tool for employee growth. When used correctly, a PIP helps employees identify skill gaps, set clear goals, and improve performance in a structured way.

Instead of focusing only on underperformance, a PIP creates a culture of continuous learning. Employees clearly understand what is expected of them and how they can improve. It can also be helpful when transitioning into a new role.

If PIPs are introduced as soon as performance issues arise they become a normal part of workplace development rather than a punishment. Employees will see them as opportunities for growth instead of warnings.

When Should You Use an Employee Performance Improvement Plan Template?

A performance improvement plan template is usually the next step after multiple verbal or written warnings about an employee’s performance. It focuses on measurable performance issues and helps employees understand their need to improve.

If you're unsure whether to create a PIP, consider these questions:

• Is poor performance a recurring issue? A PIP isn’t for one-time mistakes. A PIP may be needed if an employee struggles after documented conversations and coaching.
• Can an action plan fix the problem? If the issues involve work quality, deadlines, or goal achievement, a structured plan can help.
• Have you provided enough support? If poor performance is due to a lack of training or other external factors, ensure the employee has the right resources. If they still struggle after these efforts, a PIP could help them get back on track.

How to Write a Performance Improvement Plan Template?

Here’s a structured performance improvement plan template word sample that you can customize for any situation:

Employee Name: [Insert Employee Name]
Job Title: [Insert Job Title]
Department: [Insert Department]
Manager Name: [Insert Manager Name]
Date Issued: [Insert Date]
Review Period: [Insert Timeframe, e.g., 30, 60, or 90 days]

1. Reason for the Performance Improvement Plan

[Clearly state why the PIP is implemented, specifying the performance issues. Example:]
"This PIP is being implemented due to consistent underperformance in [specific job responsibilities]. The goal is to help [Employee Name] meet job expectations and improve their contributions to the team."

2. Performance Issues

[List specific areas where performance is lacking. Be objective and provide examples.]

• Issue 1: [Describe the problem, e.g., "Missed project deadlines on multiple occasions."]
• Issue 2: [Describe another performance issue, e.g., "Failure to meet sales targets for 3 consecutive months."]
• Issue 3: [Include any behavioral or productivity concerns, if applicable.]

3. Expected Performance Improvement Goals

[Specify what improvements are needed and the success criteria.]

• Goal 1: [Example: "Submit all reports by their due dates with no errors."]
• Goal 2: [Example: "Increase customer satisfaction score from 75% to 90% within 60 days."]
• Goal 3: [Example: "Improve teamwork by actively participating in weekly meetings."]

4. Action Plan & Support

[Detail the steps the employee should take and the resources/support available.]

• Training: [Specify if training will be provided, e.g., "Attend time management workshop."]
• Mentorship: [Assign a mentor or supervisor for guidance.]
• Additional Support: [E.g., "Regular feedback meetings every two weeks."]

5. Consequences of Not Meeting Expectations

[Clearly describe what will happen if the employee does not meet the improvement goals.]

• Failure to meet expectations may result in further disciplinary actions, including termination.

6. Follow-Up & Review Schedule

[Define how progress will be tracked and reviewed.]

• Check-in Meeting 1: [Date]
• Check-in Meeting 2: [Date]
• Final Review Meeting: [Date]

7. Acknowledgment & Signatures

"I acknowledge that I have received this Performance Improvement Plan and understand the expectations set forth."

Employee Signature: ____________________ Date: _______________
Manager Signature: ____________________ Date: _______________
HR Representative Signature (if applicable): ____________________ Date: _______________

Effective Tips for Performance Improvement Plans

Follow these tips when writing performance improvement plan templates:

1. Know When to Use a Performance Improvement Plan

Handling poor performance can be tough for managers. But hoping things get better without a plan usually doesn’t work. That’s where HR can step in to support both employees and managers.

Before using a performance improvement plan, consider these questions:

• Is the employee’s performance affecting their teammates?
• Has their performance recently changed, or have they struggled to meet goals?
• Is the manager using a PIP just to build a case for firing the employee?

2. When to Avoid Using a Performance Improvement Plan

PIPs aren’t always the right solution for performance issues. Here are situations where they may not be effective:

• Not a checkbox exercise: A PIP requires time and effort, so it should only be used if there’s a real chance of improvement. If employees see PIPs as a way to fire people, they’ll fear and distrust the process instead of seeing it as a tool for growth.
• Won’t fix personal conflicts: Managers and employees don’t have to be friends but need mutual respect. If a personality clash is the problem, moving the employee to a different team or role might be a better solution. If the company’s direction changes and the employee no longer fits, a PIP won’t help much.
• Not for long-term underperformance: If an employee has been struggling for years without action, a PIP is unlikely to turn things around suddenly. Addressing issues early is key.
• Not for serious violations: PIPs are unsuitable for handling theft, violence, or severe insubordination. These require immediate disciplinary action.

3. Track PIP Success with Metrics

A PIP should clearly define problems, solutions, and actions for improvement. Tracking progress with the right metrics ensures effectiveness. HR can support managers by using:

• 360-degree feedback: Collect feedback from colleagues, customers, and supervisors for a complete performance picture.
• 180-degree feedback: A simpler version that gathers input from direct managers and team members.
• Net Promoter Score (NPS): For customer-facing roles, this measures how customers feel about their interactions with an employee.
• Training metrics: Evaluate whether training efforts improve performance to avoid wasting time and resources.
• Performance reviews: Traditional performance reviews are useful, but combining them with other metrics strengthens PIP effectiveness.
• Ranking scales: Use predefined scales to measure performance versus expectations. Tracking and analyzing this data helps drive real improvements.

Summary

A performance improvement plan template is a valuable tool for promoting employee growth and addressing performance challenges in a structured way. When used effectively, it helps set clear expectations, provide necessary support, and track progress with measurable goals. By using the right strategies, businesses can create a productive work environment where employees thrive.

FAQ

How to Write a Performance Improvement Plan Template

To write a performance improvement plan template, start with a clear statement of purpose defining the performance issues and expected improvements. Include specific goals, measurable action steps, a timeline for progress, and support resources. Conclude with consequences of not meeting expectations and a follow-up review process.

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