How to Run a Performance Improvement Plan (PIP) Fairly

A performance improvement plan, or PIP, is a structured way to help an employee who is not meeting expectations. Used well, it is fair to the employee and protects the company. Used as a formality before dismissal, it often backfires.

When to use a PIP

• The gap is about performance, not misconduct. Misconduct follows a separate process.
• Expectations were clear, and the employee had reasonable support.
• Informal feedback has not led to improvement.

Before you start

Check that the targets existed in writing, such as a job description or KPI, that the employee received training, and that the problem is not caused by workload or missing tools.

What a good PIP contains

• The gap: specific examples of what was expected and what happened.
• Targets: measurable goals for the next 30, 60 or 90 days.
• Support: coaching, training, tools or adjusted workload that you will provide.
• Check-ins: a fixed schedule, for example every two weeks, with notes.
• Timeline and outcomes: the review date and what may happen if goals are met or not.

Running the plan

1. Hold a private meeting, explain the plan and listen to the employee's view.
2. Give the PIP in writing and ask for acknowledgement.
3. Follow the schedule and record progress honestly.
4. Give feedback early and recognise improvement.
5. At the end, review the results against the targets and decide: confirm improvement, extend or take further action under policy.

Avoid these mistakes

• Vague targets such as "improve attitude".
• No real support from the manager.
• Skipping the check-ins.
• Deciding the outcome before the plan begins.

This article is general information, not legal advice. Check the latest official guidance (HRD Corp, Ministry of Human Resources, Labour Department) for your situation. TEM can help you design performance frameworks and guide difficult cases.

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