A performance improvement plan, or PIP, is a formal document that tells an employee which performance gaps must be fixed, what success looks like, what support they'll get, and how long they have, usually 30, 60, or 90 days. It's meant to give a fair final chance to improve and to document the process if they don't.
Key takeaways
- A good PIP names specific gaps, measurable goals, support, check-in dates, and consequences.
- Most PIPs run 30 to 90 days, depending on how long it takes to show improvement in the role.
- PIPs work best when earlier feedback has already happened; they shouldn't be a surprise.
- Consistency matters: similar performance problems should lead to similar plans.
How performance improvement plan works
A PIP usually follows informal coaching that hasn't worked. The manager and HR draft the plan together. It lists each performance gap with examples, the expected standard, how it will be measured, the resources available such as training or more frequent one-on-ones, and the dates for check-ins. It ends by stating what happens if goals aren't met, often termination.
The manager reviews the plan with the employee, who signs to confirm receipt. During the plan, the manager holds the scheduled check-ins and documents progress. At the end, there are three outcomes: the employee meets the goals and the plan closes, the plan is extended for clear progress, or employment ends.
PIPs are a performance tool. Conduct problems such as attendance or policy violations usually go through progressive discipline instead.
Performance improvement plan example
A customer support agent's first-contact resolution rate sits at 58% against a team standard of 75%, and coaching over two months hasn't helped. Her 60-day PIP sets a target of 70% by day 30 and 75% by day 60, measured in the support dashboard. She gets weekly call reviews with a senior agent and a refresher course on the knowledge base. By day 45 she's at 76%, and the plan closes successfully. Our performance improvement plan email template covers the kickoff message.
Why performance improvement plan matters for employers
PIPs protect fairness and the company. They give employees a clear, documented chance to succeed, and if employment ends, they show the decision was based on performance. That record matters: the EEOC processed 88,201 new charges in fiscal year 2025 (EEOC press release on FY2025 results, April 2026), and documentation is central to most defenses.
PIPs fail when they're used as a formality before a decision already made. Employees can tell, and it damages trust across the team. Use them when improvement is genuinely possible, and check timing against any recent complaints or leave requests to avoid the appearance of retaliation.
Common performance improvement plan mistakes to avoid
Vague goals
"Improve communication" can't be measured. Name the behavior and the standard.
No support
List the training, coaching, or resources the employee will get.
Skipping check-ins
Missed check-ins weaken the plan and the record.
Starting a PIP right after protected activity
Review timing with HR to avoid retaliation claims.
Performance improvement plan: questions people also ask
How long is a performance improvement plan?
Does a PIP mean you're getting fired?
Can you refuse to sign a PIP?
What should be included in a PIP?
Is a PIP required before firing?
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HRTally glossary entries are written by people who have run US payroll, benefits, and HR operations, then checked line by line against primary sources such as the IRS, Department of Labor, EEOC, and Bureau of Labor Statistics. Dollar limits and rates are for 2026 unless stated. We review every entry at least twice a year and whenever a rule changes. This page explains general rules and isn't legal or tax advice; state law can differ. Read our editorial standards.
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<blockquote>A performance improvement plan, or PIP, is a formal document that tells an employee which performance gaps must be fixed, what success looks like, what support they'll get, and how long they have, usually 30, 60, or 90 days. It's meant to give a fair final chance to improve and to document the process if they don't.</blockquote><p>Source: <a href="https://www.hrtally.com/hr-glossary/performance-improvement-plan/">HRTally HR Glossary, Performance improvement plan</a></p>
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.