Performance Improvement Plan (PIP) Template and Process

A performance improvement plan, or PIP, is a structured, time-bound plan to help an employee whose performance is below expectations reach the required standard. In many Indian companies, the PIP has a bad reputation: employees see it as a formal notice of exit, and some managers use it that way. A genuine PIP is different. It sets clear goals, offers real support and gives the employee a fair chance to succeed, while documenting the process if they do not. This guide covers when to use a PIP, a full performance improvement plan template, how to run review meetings, possible outcomes and the practices that keep the process fair.

When a PIP Is the Right Tool

Use a PIP when:

• Performance has been below expectations for a sustained period, not one bad week.
• The manager has already given informal feedback and the gap remains.
• The expected standard can be described in specific, measurable terms.
• Improvement within 30 to 90 days is realistic.

Do not use a PIP for:

• Misconduct. Theft, harassment, fraud or violence go through the disciplinary process.
• Problems caused by the company. If the employee lacks tools, training or clarity, fix that first.
• Health issues. If performance dropped because of illness or a personal crisis, start with support and possible adjustments.
• A decision already made. If you have decided to exit the person, a PIP is dishonest and exposes the company to challenge.

Before the PIP: Informal Steps

A PIP should rarely be the first the employee hears of a problem. Before it:

1. The manager raises specific concerns in one-to-ones, with examples.
2. The manager checks for causes: unclear expectations, workload, skills, personal issues.
3. Support is offered: coaching, training, clearer priorities.
4. The manager documents conversations briefly with dates.
5. If there is no improvement after a reasonable time, the manager consults HR about a formal PIP.

Performance Improvement Plan Template

Below is a template you can adapt. Fill in the square brackets.

Section 1: Employee details

• Employee name, ID, designation, department.
• Manager name and HR partner.
• PIP start date and end date.
• Review meeting dates.

Section 2: Performance concerns

"This plan is being put in place because your performance in the following areas has not met the expectations of your role, as discussed on [dates]:"

1. [Area 1, with specific examples and data. Example: "Customer tickets resolved within SLA averaged 74 percent between July and September, against the team expectation of 90 percent."]
2. [Area 2, with specific examples. Example: "Three client reports in August and September were submitted after the agreed deadline without prior notice."]

Section 3: Expected standards and goals

Area	Current level	Expected level by end of PIP	How it will be measured
Ticket resolution within SLA	74%	90% or above in each of the last 4 weeks	Ticketing system weekly report
Client report timeliness	3 late in 2 months	All reports on time, or delay flagged at least 24 hours in advance with reason	Report tracker
Weekly status updates	Irregular	Written update every Friday by 5 pm	Manager confirmation

Section 4: Support the company will provide

• [Training, for example "Two sessions with the senior support lead on handling complex tickets in week 1 and week 3."]
• [Tools or access, for example "Access to the knowledge base editor."]
• [Manager time, for example "Weekly 30 minute check-in every Monday."]
• [Workload adjustment, if any.]

Section 5: Review schedule

"We will meet every [week / two weeks] on [day] to review progress against each goal. A written summary of each review will be shared with you within two working days."

Section 6: Possible outcomes

"At the end of the plan, if the expected standards are met, the PIP will be closed and your performance will continue to be managed through normal processes. If there is substantial but incomplete progress, the plan may be extended once by up to [30] days. If the expected standards are not met, further action may be taken in line with company policy, which may include a change of role or termination of employment."

Section 7: Acknowledgement

"I have received this plan and discussed it with my manager. My comments: [space for employee]. Signature and date."

The employee signs to acknowledge receipt, not agreement. Give them space to record their view.

Choosing the Duration

Role type	Typical PIP length
Roles with daily measurable output, such as support or operations	30 to 45 days
Roles with weekly or monthly cycles, such as sales or accounts	60 days
Roles with longer cycles, such as project management or senior roles	60 to 90 days

The period must be long enough for the employee to show improvement in the measures you chose. A 30 day PIP for a goal measured monthly gives only one data point.

Running the PIP Meetings

The opening meeting

1. Manager and HR present. Hold it privately, in person or by video.
2. Explain that the purpose is to help the employee succeed.
3. Walk through each concern with examples.
4. Explain the goals, measures and support.
5. Invite the employee's view: do they see the issues differently, is anything missing, what support would help?
6. Adjust the plan if the employee raises valid points.
7. Share the written plan and agree review dates.

Weekly or fortnightly reviews

• Review data for each goal.
• Acknowledge progress specifically.
• Discuss obstacles and adjust support.
• Record a short written summary and share it.

Final review

Assess each goal against the expected level, discuss with HR, and communicate the outcome in a meeting followed by a letter.

Possible Outcomes

• Successful completion: Close the PIP in writing and congratulate the employee. Keep supporting them; relapse is common if attention drops.
• Extension: Only once, when progress is clear but not complete.
• Role change: Sometimes the person is better suited to a different role. Explore this honestly.
• Separation: If standards are not met, separation may follow according to the appointment letter, company policy and applicable law, with notice or pay in lieu. Take legal advice before termination, especially for long-serving employees or where standing orders apply.

Sample Review Summary Note

Short written summaries after each review meeting keep the process transparent and create a fair record. An example for week three of a hypothetical 45 day PIP:

"PIP review 3, held on [date]. Present: [employee], [manager]. Ticket resolution within SLA: 86 percent this week, up from 81 percent last week and 74 percent at the start. Client reports: both reports due this fortnight were submitted on time. Weekly status updates: received on both Fridays. Support provided: second session with senior support lead completed; knowledge base access given. Employee comments: complex billing tickets still take longer; requested a checklist. Agreed actions: manager to share billing ticket checklist by Wednesday; employee to flag any ticket at risk of breaching SLA by midday. Next review: [date]."

The note records facts, progress, support given and agreed next steps. It avoids judgemental language and gives the employee a chance to record their view. If the PIP is ever reviewed later, notes like this show that the process was genuine.

How Managers Should Prepare

• Collect data for the concerns before writing the plan, not after.
• Check how peers in the same role perform on the same measures, so expectations are consistent.
• Confirm what support you can actually provide and book it before the first meeting.
• Block review meetings in your calendar for the whole PIP period.
• Plan for your own absence: who will hold a review if you are travelling?
• Prepare for an emotional reaction. Allow time, listen and do not argue in the first meeting.

Keeping the PIP Fair

• Goals must be achievable and comparable to what peers in the same role are expected to deliver.
• Support must actually be provided. A PIP that promises training that never happens will not stand scrutiny.
• Reviews must happen on schedule.
• The employee must be able to give their side in writing.
• HR should check that PIPs are not being used disproportionately against any group, or against employees who recently raised complaints.
• Keep everything confidential.

Many PIPs originate from the annual cycle. Our guide to the annual performance appraisal process explains how ratings should be evidenced before any PIP begins.

Common PIP Mistakes

• Vague goals such as "improve attitude" or "show more ownership" without observable measures.
• PIP as the first conversation about the problem.
• No support offered.
• Reviews skipped because the manager is busy.
• A pre-decided outcome.
• Extending repeatedly instead of deciding.

Frequently Asked Questions

Does a PIP mean I am going to be fired?

Not necessarily. A genuine PIP is meant to help you improve, and many employees successfully complete one. Ask for clear goals and support, and use the reviews to show progress.

How long should a PIP last?

Typically 30 to 90 days, depending on how long it takes to see measurable improvement in the role.

Can an employee refuse to sign a PIP?

The signature acknowledges receipt, not agreement. If the employee declines, record that the plan was shared and discussed, and invite written comments.

Should HR be involved in a PIP?

Yes. HR ensures consistency, fairness and documentation, and attends the opening and closing meetings.

Can a PIP be used for an employee on probation?

During probation, the probation review process usually serves the same purpose, with an extension if needed. A separate PIP is rarely necessary.

Manage PIPs Alongside Reviews

Fininvo HRMS includes PIP management, continuous feedback and review templates in its performance module, and learning paths to deliver the support a plan promises. Explore performance management, learning and pricing.