When to Use Performance Improvement Plans
Imagine this: You have an employee who’s been struggling with meeting deadlines. The quality of their work has slipped, and despite your casual check-ins and reminders, nothing seems to be improving. You’re starting to wonder if they’re just not the right fit.
Before making a big decision, consider this: Is the issue one of skill, understanding, or effort? If you believe the concerns can be addressed through structured guidance, clear expectations, and additional support, then it’s time to consider a Performance Improvement Plan (PIP).
Many managers view PIPs as a step toward termination. However, when used correctly, they are a coaching tool designed to help employees succeed, not performance manage them out. A well-implemented PIP focuses on development, building trust, and creates an opportunity for employees to improve their performance with clear guidance. So, when exactly should you use a PIP? Let’s break it down.
1. When an Employee is Struggling but Shows Potential
If an employee has performed well until recently but has hit a rough patch, a PIP can help them get back on track. Perhaps a sales representative who once exceeded sales goals is now missing targets, or a customer service agent is receiving complaints for the first time. A PIP provides structured support rather than expecting they are going to change on their own.
2. When There’s a Clear Gap Between Expectations and Performance
A PIP is appropriate when an employee’s performance does not meet job expectations despite informal feedback. Maybe they have difficulty following procedures, lack attention to detail, or struggle with communication. Instead of letting frustration build, a PIP outlines expectations in measurable terms and offers a clear roadmap for improvement.
3. When Behavior, Not Just Skills, Need Adjustment
Performance isn’t just about skills—it’s also about attitude, teamwork, and professionalism. If an employee’s behavior is disruptive (ex. frequent conflicts with colleagues, resistance to feedback, or lack of accountability), a PIP can guide them toward positive change. The key is to focus on behavioral improvements rather than personal judgments.
4. When Training or Resources Can Make a Difference
Sometimes, performance issues stem from a lack of proper training or resources rather than incompetence. If an employee hasn’t received the right onboarding, mentorship, or access to the right tools, they may struggle unnecessarily. A PIP can incorporate additional training, mentorship, or support systems to bridge the gap.
5. When You Want to Show Commitment to Employee Growth
A well-executed PIP communicates that you believe in your employee’s potential and are invested in their success. Instead of viewing it as a disciplinary step, frame it as a collaborative effort: “I see areas for improvement, and I want to help you succeed.” Employees are more likely to engage with a PIP when they feel supported rather than punished.
When NOT to Use a PIP
While PIPs are valuable coaching tools, they aren’t the right solution for every situation. Avoid using a PIP when:
You’ve already decided to terminate the employee—A PIP should be a genuine effort to improve performance, not a formality before firing.
The issue is one of integrity or major misconduct—Serious violations like fraud or harassment require immediate action, not a performance plan.
The role is a bad fit—If the employee’s skills, interests, or long-term career goals don’t align with the role, a PIP may not be effective.
When done right, a Performance Improvement Plan isn’t about punishment—it’s about creating an opportunity for success. Before jumping to conclusions, ask yourself: Does this employee have the potential to improve with the right guidance? If the answer is yes, a PIP might be exactly what they need to get back on track.
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