How to Put an Employee on a
Performance Improvement Plan
A performance improvement plan is not a paper trail for firing someone. Done right, it’s a structured 30-90 day agreement that gives a struggling employee a genuine chance to turn things around — with clear expectations, real support, and honest accountability. Here’s how to do it properly.
- When a PIP is appropriate — and when it isn’t
- What a PIP should contain
- The conversation before the document
- Writing PIP goals that are actually achievable
- How to manage someone on a PIP
- What to do if the PIP works — and if it doesn’t
- The legal and HR basics every founder should know
When a PIP Is Appropriate — and When It Isn’t
A performance improvement plan is appropriate when: a team member is underperforming against clear, documented expectations, they’ve received feedback previously and the performance hasn’t improved, you believe with genuine conviction that improvement is possible with the right structure and support, and you want to give them a fair, documented opportunity to succeed.
A PIP is not appropriate when: the decision to terminate has already been made and the PIP is simply creating a paper trail to justify it (this is both dishonest and creates legal risk), when the performance issue is actually a role or fit issue rather than an individual performance issue, or when the environment or management is the primary cause of the underperformance.
Before initiating a PIP, ask honestly: do I believe this person can succeed in this role with the right support? If the honest answer is no, a PIP is not the right tool. Have the harder conversation instead.
A PIP that’s genuinely designed to help someone succeed looks different from one designed as a precursor to termination. The person on the PIP can almost always tell which one it is. The one designed for success has ambitious but realistic goals, meaningful support, and a manager who checks in genuinely rather than just documenting. Design it to work.
What a PIP Should Contain
A well-written PIP has six components. Missing any of them creates ambiguity that hurts both parties.
1. The performance issue: A clear, specific description of what hasn’t been meeting expectations. Not character judgments — observable behaviours and measurable outcomes. “Deliverables have been submitted late in 7 of the last 10 sprints” rather than “lacks reliability.”
2. The expectations: What “meeting expectations” looks like going forward — specific, measurable, time-bound. Not “improve communication” but “complete weekly updates by 9am Monday and respond to team queries within 4 hours during working hours.”
3. The timeframe: 30, 60, or 90 days depending on the complexity of the improvement required. 30 days for behavioural issues. 60-90 days for skill or output issues that take longer to demonstrate.
4. The support: What you as the manager will do to help. Weekly 1:1s, specific training, clearer briefings, access to resources. A PIP without a support commitment is a threat, not a plan.
5. Check-in milestones: Scheduled reviews at regular intervals — typically every 2 weeks. What will be reviewed, by whom, and against what criteria.
6. Consequences: What happens if the PIP is successfully completed. What happens if it isn’t. This should be stated clearly and honestly.
“Write a Performance Improvement Plan for an employee in the role of [job title]. The performance issues are: [describe specifically — what hasn’t met expectations, with examples]. The improvement required: [what ‘meeting expectations’ looks like going forward]. Timeframe: [30/60/90 days]. Support I’m committing to provide: [list]. The PIP should: use specific, observable language rather than character judgments, set goals that are ambitious but genuinely achievable, include a clear check-in schedule, and state consequences honestly. Write it in a tone that’s direct and serious but genuinely supportive — not punitive.”
The Conversation Before the Document
A PIP should never be a surprise. If someone is receiving a formal PIP without having had previous feedback conversations about the performance issue, something has gone wrong earlier in the process.
Before any PIP document is shared: have an explicit conversation where you name the performance issue clearly, explain that you’re moving to a formal improvement plan, give them the opportunity to share their perspective on what’s happening, and confirm that they understand both the seriousness of the situation and that you genuinely want to see them succeed.
This conversation is not the PIP — it’s the conversation that frames the PIP. The document follows the conversation, not the other way around.
“I need to have a conversation with [describe the employee’s role and situation] to inform them they’ll be placed on a Performance Improvement Plan. The performance issues are: [describe]. Previous feedback given: [describe what’s already been said and when]. Help me: (1) Open the conversation clearly without it feeling ambush-like, (2) Explain why we’re moving to a formal PIP without making it feel like a firing notice, (3) Create space for them to share their perspective, (4) Close the conversation with clear next steps and a date when they’ll receive the written PIP. Tone: serious and honest, but genuinely supportive.”
Writing PIP Goals That Are Actually Achievable
The most common PIP failure is goals that are either so vague they can’t be assessed (“improve communication”) or so ambitious that they’d be challenging for a high performer, let alone someone who’s currently struggling.
PIP goals should be achievable by someone who is genuinely trying and improving, measured by observable outputs rather than subjective assessments, and assessed at the milestone dates rather than only at the end of the plan. A PIP that can only be evaluated at day 90 gives no opportunity to course-correct at day 30.
How to Manage Someone on a PIP
Managing someone on a PIP is more intensive than normal management, and that’s appropriate — it’s what the commitment in the PIP document requires.
Weekly 1:1s are non-negotiable during a PIP period. Each 1:1 should cover: progress against the specific PIP goals, what’s working, what’s not, and what support they need from you. Document these conversations briefly after each one — a 5-sentence note is enough. If things don’t improve, this documentation matters.
The most common manager failure during a PIP: going through the motions of the check-ins without genuine engagement. If you’re counting down the days until the PIP ends so you can make the termination decision you’ve already made, the person on the PIP will know. And it’s not fair to them.
What to Do if the PIP Works — and if It Doesn’t
If the PIP works: Celebrate it genuinely. A note on the successful completion, a conversation about what changed and what they want to focus on next, and a clear statement that this is now behind them. Don’t treat someone who completed a PIP as permanently marked — they earned their way back.
If the PIP doesn’t work: The conversation should not be a surprise — the check-in milestones should have made it clear that the trajectory wasn’t improving. Proceed to the termination conversation with the documentation from the PIP period. The process has been fair and documented. The decision, though hard, is defensible.
The Legal and HR Basics Every Founder Should Know
Employment law varies significantly by jurisdiction. In Canada, wrongful dismissal provisions are real and can be expensive. In the US, at-will employment gives more flexibility, but documentation still matters. Before initiating any PIP that might lead to termination, consult an employment lawyer, even briefly — a 30-minute call is worth far more than the risk of getting this wrong.
Keep records of all performance conversations, not just the PIP itself. A pattern of documented feedback over time is far more defensible than a single PIP document with no prior context.
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