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Guide for business owners

How to Use a Performance Improvement Plan (PIP) Properly

When a quiet word has not fixed underperformance, a performance improvement plan, or PIP, is usually the right next step. Done well, it gives the employee a genuine chance to improve and gives you a fair, documented process if they do not. Done badly, it looks like a set-up and hands them a claim. Here is how to run one properly.

Written by Samantha Newton FCIPD, Chartered Fellow CIPD · 5 min read · Last reviewed June 2026

Samantha writes a weekly HR column for Health & Wellbeing Magazine.

Be specific about what needs to improve

A PIP only works if the employee knows exactly what is falling short and what good looks like. Vague feedback like 'lift your game' helps no one. Set out the specific standards, with examples, so there is no room for confusion.

Link each point to something measurable and realistic: targets, deadlines, quality standards, behaviours. If you cannot describe what success looks like, the plan is not ready to start.

First move

Write down the specific standards that are not being met, with real examples, before you meet the employee.

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Give real support and a fair timeframe

A PIP is meant to help someone improve, not to tick a box before dismissal. Offer the support that makes improvement possible: training, closer supervision, clearer priorities, or whatever the situation needs.

Give a reasonable period to turn things around, with check-ins along the way rather than a single verdict at the end. The timeframe should fit the role and the issue, not be so short that failure is guaranteed.

First move

Agree the support you will provide and a realistic timeframe, with regular check-ins built in.

Record everything and hold your nerve

Keep a written record of the standards set, the support given, the check-ins and the outcome. That record is what protects you if the plan does not work and you have to move to a formal capability process.

Stay consistent and fair throughout. If the employee improves, great. If they do not, you will have a clear, documented, defensible basis for the next step, rather than a rushed decision that unravels later.

First move

Document each stage as you go, so a fair process is on record whichever way it ends.

“Samantha helped us with a long-term sickness matter and saved us from expensive employment law issues. A stressful situation handled in a fair and human way. Her advice was invaluable.”
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Key takeaways

  • A PIP gives a genuine chance to improve and a fair process if it does not work out.
  • Be specific about the standards and what good looks like, with examples.
  • Offer real support and a realistic timeframe, not a box-ticking countdown to dismissal.
  • Record every stage. Not sure if it is time for a PIP? Take the free Situation Check.

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