Performance Improvement Plan (PIP)
What Should Be Included in a Performance Improvement Plan (PIP)?
A Performance Improvement Plan (PIP) is a formal, time-bound document that outlines specific performance deficiencies, sets clear expectations for improvement, and establishes a timeline for review—often used as a documented step before termination for performance reasons.
A well-constructed PIP identifies specific, measurable performance gaps, states clear expectations, sets a defined timeframe (commonly 30, 60, or 90 days), and outlines available support along with consequences if performance doesn’t improve. PIPs create a documented record that can protect the employer if termination becomes necessary.
PIPs are not legally required, but many employers use them as part of a progressive discipline policy. A common mistake is treating a PIP as a formality with a predetermined outcome—if an employee genuinely meets its goals, the employer should acknowledge the improvement.
Performance Improvement Plan Key Facts and Best Practices
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Not legally required, but common as part of progressive discipline and documentation practices.
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Should include specific, measurable goals, a defined timeline, and available support.
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Provides documentation that can help defend against wrongful termination claims.
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Should be applied consistently—treating it as a predetermined outcome undermines its value.
Frequently Asked Questions
Is a PIP legally required before terminating an employee?
No—but many employers use it as a documented step in progressive discipline.
How long does a typical PIP last?
Commonly 30, 60, or 90 days.a
What happens if an employee successfully meets their PIP goals?
The employer should acknowledge the improvement rather than proceeding with termination anyway.
Can an employee be terminated during an active PIP?
Yes—a PIP does not guarantee job security, and an employer can still terminate for cause or ongoing performance issues during the plan period.
Should HR be involved in drafting a PIP?
Yes—HR involvement helps ensure the plan is fair, consistent with how similar situations were handled, and properly documented.
Related terms: At-Will Employment, Employee Handbook Requirements, Job Classification: Exempt vs. Non-Exempt