Performance Improvement Plan Template (Definition & Examples)

A performance improvement plan is a go-to tool for addressing and improving employee performance. It’s a rising trend among companies aiming to optimize employee performance, maximize productivity, and support their professional growth.

To help your business scale and your teams excel, we’ve created a guide to building the best performance improvement plan template, complete with practical tips and real-world examples to get you started. 

Also, here is a free improvement plan template you can use to address and improve your employees’ performance!

What Is The Goal Of A Performance Improvement Plan Template?

Unlike professional development plans that map career growth, a performance improvement plan template, or PIP, focuses on identifying and improving performance gaps. It outlines actionable steps over a set timeframe, empowering employees to meet role responsibilities with confidence and success. However, if templates are not enough, help them attend certificate programs and earn micro-credentials!

A PIP is not a one-size-fits-all. While a standardized document, the plan itself can vary based on specific employees and role expectations. By customizing PIPs, HR teams and decision-makers can manage performance efficiently, ensuring alignment with business objectives and role demands. 

When To Use A Performance Improvement Plan Template?

A performance improvement plan template can be applied in various scenarios. Some companies implement PIPs ongoingly to ensure employees are up to par. Others do it yearly or bi-yearly, ensuring a steady but effective improvement strategy. Either way, businesses that have implemented a PIP template reported 30% higher employee engagement and a 20% productivity boost. Here’s where performance improvement plans can be beneficial.

• If there’s underperformance. Following a PIP template is a great response to employees who fail to meet role expectations or quality standards. It helps identify their weak spots, providing steps to address them. A PIP also reassures lagging employees that there’s a way for them to get back on track without needing drastic measures.
• Difficulty implementing feedback or working with teams. A performance improvement plan template benefits employees who struggle with feedback, or don’t communicate effectively across teams. A PIP gives guidance on how to raise self-awareness and supports mentoring programs to build company culture. 
• Reduced engagement and productivity. A performance improvement plan template does wonders for employees who’ve lost their spark for the job. It allows them to follow a clear pathway to reaching their goals, boosting proactivity, engagement, and initiative.  

A performance improvement plan template is not a one-man job. Beyond HR departments, leaders, managers, and other stakeholders should actively engage in developing long-term strategies that encourage and support professionals in maintaining top-level performance.

Benefits of Performance Improvement Plans

A performance improvement plan template is not something to dread. It serves as a long-term support system for your employees, helping them align their expectations with the company’s goals. Here are the main benefits of a PIP. 

• Contributes to professional development. PIPs help employees grow further into their roles. By encouraging them to attend designated training and career advancement programs, they can earn digital certifications, expand their skills, and regain their morale.
• Lower turnover rate. Rather than terminating contracts, a PIP helps underperforming employees improve over time. Companies can build and retain their talent, reducing turnover rates, and saving on extra costs for hiring and onboarding. 
• Builds a dynamic company culture. By addressing key weaknesses and obtaining certain skills, employees can learn to easily reintegrate with the company culture, collaborate efficiently across teams, and support the organization’s growth.  

How to Develop a Performance Improvement Plan 

Creating a performance improvement plan template won’t look the same for every employee. However, there are several key elements businesses must include in a PIP to successfully cover the process.

Do Performance Reviews Of Employees

Before creating a full-on PIP, businesses need to understand which employees may be underperforming. Conducting performance reviews helps identify skills gaps, low engagement, and weak outputs, allowing HR teams to build the improvement plan around the top priorities. 

Document the identified issues and back them up with evidence to further support the need to create an effective PIP.

Start With A Brief Overview

Create a brief overview of the performance improvement plan at hand, why it’s needed, and which employees will be included in it. Highlight the company’s performance and expectations, indicating how lower contributions can impact the business.  

Using visual graphs and charts can help employees and stakeholders understand your findings and possible solutions. They can also contribute to building a more robust plan based on specific employee needs vs long-term company objectives. 

Develop A Step-By-Step Action Plan

The official performance improvement plan should feature various key elements that employees need to follow to ensure a successful process. Here’s what to include in your PIP template. 

• Set and compare measurable goals. Explain how employees should improve performance, whether it’s through training, mentorship, or e-learning. Detail the expected outcomes from these goals to compare progress over time. 
• Develop a schedule. Determine the duration and deadline for completing the performance improvement plan template. Be realistic with how much employees can achieve, and plan some additional time for reviews and mentoring calls. 
• Outline the repercussions or next steps. Include the next steps of action or include the potential consequences of failing to meet PIP standards. This can range from conducting additional PIPs to introducing disciplinary actions and dismissing the employee. 
• Save some room for signatures. To ensure transparency, every PIP will be reviewed before it’s signed by the employee, their manager, and an HR person. Be sure to include placeholders for the signatures of everyone involved to promote commitment and accountability.  

Measure And Adjust Over Time 

A performance improvement plan should be flexible to potential changes and needs over time. Some of the key metrics companies should monitor and adjust to improve over time include:

• On-time Completion Rate. A KPI measuring how productive employees are on PIP, based on completed projects in a given timeframe versus the projects started during that time. This metric can also indicate how effectively employees manage deadlines.
• Employee Engagement Score. This metric shows how proactive employees are on PIP, including their emotional investment in projects. It can reveal if employees have a purpose in their roles and their satisfaction level through steps like completing surveys.
• Quality of Delivered Work. A metric that evaluates how well employees have done their jobs. Accuracy, speed, and flexibility in projects can factor into work quality, allowing companies to take necessary steps to optimize efficiency and enhance delivery. 

Examples of a Performance Improvement Plan Template

A performance improvement plan sounds complicated, but it’s quite simple to put into practice. Here are two simple performance improvement plan template examples you can consider.  

Example 1 

Employee name: John Doe

Position: Customer Support Team Manager

Responds to: Head of Customer Support

Performance review issues: Inefficient team management with missed calls from long-term clients, leading to broken reputation, and client and revenue loss.  

PIP Goal: 

Improve customer support efficiency by 30% over the next quarter. Improve communication promptness and readiness by ensuring 100% of client calls are taken accordingly. Resolve issues with lost and unhappy customers, delivering a 90% success rate.  

Steps to take:

• Attend mentorship workshops with the Head of Customer Support to improve team management and success skills. 
• Book weekly in-person or online meetings with a mentor to ensure guidance and constructive feedback. 
• Engage in team-building activities to improve team efficiency, morale, and productivity.

Overall timeframe: Three months

• Mentorship workshops—one month to complete. 
• Weekly meetings—three months to complete. 
• Improvement review—completed after three months.     

PIP failure consequences and outcomes:

Failing to meet the PIP requirements within the provided timeline may result in additional disciplinary sanctions, additional training, or potential termination if objectives are not met.

Example 2

Employee name: Jane Doe

Position: Assistant Project Manager

Responds to: Project Manager 

Performance review issues: Insufficient and ineffective collaboration with colleagues and team leaders. Misinformed team members, reducing proactive company decision-making and team productivity by 5%. 

PIP Goal: 

Improve team communication by 90%. Provide 100% accurate and double-checked information to team members. Organize information accordingly to ensure proper management in the future. 

Steps to take:

• Attend an active listening flash course to improve collaboration across teams.
• Engage in a mentorship workshop to optimize interpersonal and leadership skills. 
• Seek feedback from peers and team members to improve communication. 
• Schedule daily meetings with the mentor to receive feedback and track progress.   

Overall timeframe: Forty-five days

• Active listening course—two weeks.
• Mentorship workshop—three weeks. 
• Daily meetings—forty-five days to complete. 
• Improvement review—completed after forty-five days.      

PIP failure consequences and outcomes:

Failing to meet the PIP requirements within the provided timeline may result in additional disciplinary sanctions, retraining, or potential termination if objectives are not met.

Performance Improvement Plan Template—Take Away

Employee performance may fluctuate over time, and that’s okay. A well-crafted performance improvement plan template ensures organizations stay ready for ‘what if’ situations, helping every team member reach their full potential. 

With performance and talent management emerging as key trends, companies cannot afford to lose quality talent. Replacing employees is more costly than retraining them. By following our guide or examples, companies can foster a thriving company culture where everyone’s performance is top of the chain.

Performance Improvement Plan Template FAQ