What Happens During a Performance Improvement Plan

Montreal Jul 09, 2026

When an employee's performance doesn't meet the expected standards, it's not always a cause for termination. Instead, many organizations opt for a Performance Improvement Plan (PIP). This structured approach aims to help the employee understand the performance gap, set clear goals, and provide support to improve their performance. But what exactly happens during a PIP? Let's delve into the process.

The Truth About 'Performance Improvement Plans'
The Truth About 'Performance Improvement Plans'

A PIP is typically initiated by a manager or HR, following a thorough assessment of the employee's performance. It's important to note that a PIP should be a fair and transparent process, with clear communication throughout. Now, let's break down the key stages of a PIP.

How to Write a Performance Improvement Plan (Free Template)
How to Write a Performance Improvement Plan (Free Template)

Understanding the Performance Gap

Before any plan is put into action, it's crucial to clearly define the performance gap. This involves identifying the specific areas where the employee's performance falls short of the required standards.

Am I Getting Fired After a Performance Improvement Plan?
Am I Getting Fired After a Performance Improvement Plan?

To ensure fairness and objectivity, this assessment should be based on concrete examples and data. It's also essential to consider the employee's past performance, their current role, and the expectations for their position.

Setting Clear Goals

the performance improvement plan is shown in this document, which shows how to use it
the performance improvement plan is shown in this document, which shows how to use it

Once the performance gap is identified, the next step is to set specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals should address the performance gap and provide a clear path for improvement.

For instance, if an employee is struggling with meeting deadlines, a SMART goal could be: "By the end of the next quarter, complete all assigned tasks within the given timeframe, with a minimum of 90% on-time delivery."

Establishing a Support Plan

56 Performance Improvement Plan Templates (& Examples)
56 Performance Improvement Plan Templates (& Examples)

A PIP isn't just about setting goals; it's also about providing the support needed to achieve them. This could include additional training, mentoring, regular check-ins, or access to resources that can help the employee improve.

For example, if an employee is struggling with a particular software, providing training or access to tutorials can help them improve their skills and perform better at work.

Implementing and Monitoring the PIP

the performance improvement plan is shown in blue and yellow, with instructions on how to use it
the performance improvement plan is shown in blue and yellow, with instructions on how to use it

With clear goals and a support plan in place, the next step is to put the PIP into action. This involves regular check-ins to monitor progress, provide feedback, and make adjustments as needed.

Regular check-ins also serve as a motivational tool, showing the employee that their progress is being tracked and that they have the support of their manager and the organization.

the performance improvement plan is shown in blue and yellow, with instructions on how to use it
the performance improvement plan is shown in blue and yellow, with instructions on how to use it
Justin Mecham (@thejustinmecham) on X
Justin Mecham (@thejustinmecham) on X
Performance Improvement Plan Template & Guide [Free Download]
Performance Improvement Plan Template & Guide [Free Download]
5+ Performance Improvement Plan Template
5+ Performance Improvement Plan Template
seven great questions managers should ask during performance reviewes infographical image below is an example
seven great questions managers should ask during performance reviewes infographical image below is an example
Business Word of the Day- PIP.
Business Word of the Day- PIP.
Unlocking Success through Performance Management
Unlocking Success through Performance Management
10 Best Performance Improvement Plan Examples for Strong Performance
10 Best Performance Improvement Plan Examples for Strong Performance
the pdca cycle is shown in this hand - drawn diagram, which shows how to do
the pdca cycle is shown in this hand - drawn diagram, which shows how to do
The Truth About 'Performance Improvement Plans'
The Truth About 'Performance Improvement Plans'
How to establish a performance improvement plan
How to establish a performance improvement plan
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a circular diagram with arrows pointing in different directions
How to Develop a Performance Improvement Plan: 13 Steps
How to Develop a Performance Improvement Plan: 13 Steps
APM - Performance Management System
APM - Performance Management System
the info sheet shows how to become a top performer
the info sheet shows how to become a top performer
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the 20 lean tools that turn problems into performance
Performance Improvement Plan Framework: 9 Essential Components - Workforce Management
Performance Improvement Plan Framework: 9 Essential Components - Workforce Management
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Ways to Improve Work Performance
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Why prioritization improves performance
Performance Evaluation Template: Free Form and Examples [2025] • Asana
Performance Evaluation Template: Free Form and Examples [2025] • Asana

Providing Constructive Feedback

Feedback is a critical component of a PIP. It helps the employee understand what they're doing well and where they can improve. Constructive feedback should be specific, timely, and actionable.

For instance, instead of saying "You're not meeting deadlines," a manager could say, "I've noticed that you've missed a few deadlines recently. Let's discuss why this is happening and how we can address it together."

Making Adjustments as Needed

A PIP isn't a one-size-fits-all solution. It's important to regularly review the plan and make adjustments as needed. This could involve changing the goals, providing additional support, or even revisiting the performance gap if new information comes to light.

For example, if an employee is struggling with a goal due to factors beyond their control, such as a sudden increase in workload, the goals may need to be adjusted to reflect this.

Remember, the ultimate goal of a PIP is to help the employee improve their performance, not to punish them. With clear communication, fair assessment, and constructive feedback, a PIP can be a valuable tool for employee growth and development.