A Performance Improvement Plan (PIP) is a program that outlines specific steps that an employee must take to improve their job performance. For example, a PIP may be assigned to a sales rep who has not met quota or needs help in reaching their full potential.
When an employee is not meeting expectations, a manager will typically inform them that they are now on a PIP and outline the specific elements assigned to them:
The goal of the PIP is to help a struggling employee realize their full potential. Rather than waiting for an employee to fail and be let go, the PIP is a proactive approach that aims to address performance and achieve a positive outcome.
Not necessarily. A PIP is not a termination notice. It's a structured opportunity for the employee to improve performance with clear guidance and support. While some PIPs may ultimately lead to termination if goals aren't met, many result in the employee making meaningful progress and staying on the team.