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Performance Improvement Plan (PIP): What It Is and How to Create One Effectively
Elbert Jolio
November 28, 2025

Performance Improvement Plan (PIP): What It Is and How to Create One Effectively

Performance issues are tricky to navigate. When expectations are unclear or results keep slipping, both managers and employees feel the strain. Leaders often wonder how to turn things around without damaging trust or morale. Employees, on the other hand, may feel overwhelmed or unsure about how to improve. This gap usually grows when feedback is irregular or goals are not aligned with day-to-day realities.

A Performance Improvement Plan, often called a PIP, gives you a structured and supportive way to rebuild clarity, get expectations back on track, and help employees succeed with confidence. It turns difficult conversations into guided action steps, making it easier to assess progress, offer coaching, and create fair opportunities for improvement.

What Is a Performance Improvement Plan?

Performance Improvement Plan is a documented plan given to an employee who needs support in meeting performance expectations. It outlines specific issues, clear goals, measurable actions, and a defined timeline for improvement.

A PIP is not a punishment. It is a structured framework that gives the employee a fair chance to understand what success looks like, receive regular feedback, and access the support they need. A well designed PIP prioritises transparency, collaboration, and accountability instead of fear or pressure.

Why Performance Improvement Plans Matter

PIPs create clarity and fairness for both managers and employees. They help leaders set transparent expectations, track progress objectively, and build a coaching culture instead of relying on one-time feedback. For employees, a PIP provides a roadmap. They know what is expected, where they need to improve, and how they will be supported throughout the journey.

While many employees assume a PIP is a final warning, a PIP does not automatically mean termination. The true purpose is to correct employee performance issues, not to end employment. A well-designed PIP focuses on guidance, resources, and measurable milestones. Termination becomes a possibility only when improvement does not happen despite clear support and reasonable time.

However, from an employee’s perspective, a PIP can sometimes feel unfair, especially if they believe their performance has been satisfactory or if earlier feedback was unclear. In such cases, employees may assume the PIP is simply a formal step the company uses to justify termination. This perception often comes from poor communication, inconsistent expectations, or a lack of prior coaching.

To avoid this, managers must ensure that feedback is continuous, expectations are aligned, and the reasons for the PIP are explained transparently. When employees understand the context and feel heard, the PIP becomes a collaborative improvement plan rather than a punitive process.

When done right, PIPs protect employee trust, reduce performance ambiguity, and improve the chances of genuine turnaround.

How to Write a PIP Effectively

Creating an effective Performance Improvement Plan requires clarity, structure, and a supportive approach. Below are key steps to ensure your PIP genuinely helps employees improve, not just documents poor performance:

1. Identify the Issue Clearly

Define the specific performance gaps or behaviors that need improvement. Use concrete examples and measurable data to avoid ambiguity.

2. Provide Constructive Feedback for Employee Development

Focus on feedback that guides improvement rather than assigning blame. Explain why the issue matters and how addressing it benefits both the employee and the team.

3. Set Specific and Measurable Goals

Break down expectations into clear, attainable, and time-bound objectives. Employees should know exactly what success looks like and how it will be measured.

4. Set Regular Check-Ins

Schedule consistent progress reviews to discuss improvements, challenges, and adjustments. These meetings reinforce accountability and support.

5. Document Everything Clearly

Record expectations, feedback, timelines, and updates throughout the PIP process. Documentation ensures fairness and transparency.

6. Determine Next Steps After the PIP Period

Explain what will happen once the PIP ends, successful completion, additional support, role adjustment, or, if necessary, formal consequences.

Performance Improvement Plan Objectives

Clear objectives ensure that both managers and employees understand the purpose of the plan and what it aims to achieve.

1. Identifying Performance Gaps

A PIP helps you pinpoint exactly where performance is falling short. Instead of general feedback, it highlights specific behaviours, skills, or output issues that need attention. This clarity makes it easier for both the manager and the employee to understand what needs to change.

2. Providing Support

A strong PIP is not about pressure, it is about guidance. It ensures the employee receives coaching, resources, and regular check ins that make improvement achievable. This support shows commitment to helping the employee succeed rather than simply calling out issues.

3. Setting Clear Expectations

A PIP lays out what successful performance looks like in concrete terms. With measurable goals, defined timelines, and examples of expected outcomes, employees know exactly what they need to accomplish and how their work will be evaluated.

4. Determining Future Course of Action

The PIP framework offers a fair way to assess progress and decide what comes next. Depending on the results, this may lead to role adjustments, extended coaching, reinstated responsibilities, or further HR discussions. It ensures decisions are made objectively with documented evidence.

5. Establish The Next Steps

A PIP outlines the immediate actions both parties need to take moving forward. This includes follow up meetings, milestones to check, skills to strengthen, and any adjustments needed to stay on track. Clear next steps create structure, build momentum, and help the employee feel guided throughout the process.

Conclusion

Performance Improvement Plan is not simply a formality. When built with clarity and empathy, it becomes a powerful tool to help employees regain confidence and get back on track. It reinforces a culture of continuous improvement instead of blame, and gives leaders a fair and structured way to support their teams.

If you want to explore more articles on performance management, team development, and HR best practices, visit the Glints TalentHub blog for more insights and practical guides.


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