How to Create a Performance Improvement Plan (Templates & Examples)

Handled badly, a performance conversation becomes an ambush — vague complaints, no path forward, and an employee who feels the decision was already made. Handled well, the same conversation becomes a genuine second chance, with a clear picture of what "good" looks like and the support to get there. The difference is almost entirely down to structure, and the structure has a name: the performance improvement plan.

This guide shows how to create one that is fair, specific, and useful — not a paperwork exercise. It covers what a PIP is and when to use it, what to include, a step-by-step process, a reusable template, worked examples, and the mistakes that make plans backfire. It is written for managers and HR who want the plan actually to help someone improve, and to hold up if it is ever reviewed.

The sections below define the tool, show what goes in it, and give you the template and examples. For growing an already-strong performer instead — a different job entirely — see our guide to employee development plans.

When to use one — and when not to

A PIP is the right tool for a narrow situation, and using it outside that situation is where most of the harm comes from. Use it when performance is consistently below a clear, role-based standard — missed targets, quality problems, or a genuine skill gap — and informal feedback has already been tried without lasting change. In that case, the structure is a gift: it replaces a vague sense of "not good enough" with something the person can actually act on.

The honest test before you start: can this person realistically reach the standard with structure and support? If the answer is yes, a PIP is the fairest thing you can offer. If the answer is no and the real intention is exit, a PIP is the wrong instrument and using it that way damages trust across the team, not just with the individual. Start only when improvement is genuinely the goal — everything that follows assumes it is.

What a plan must include

A complete performance improvement plan has seven parts. Leave any vague, and the whole plan weakens—both as a fair chance to improve and as a record if the matter is later reviewed.

1. Specific performance gaps

   Exactly where performance falls short, with concrete examples and dates — not "attitude" or "not a team player".

2. Measurable goals

   The standard to reach, expressed so both sides can tell objectively whether it was met.

3. Support & resources

   What the organisation will provide — training, coaching, tools, time — to make improvement achievable.

4. Timeframe & review dates

   A clear duration (often 30, 60, or 90 days) with scheduled check-ins along the way, not just at the end.

5. How progress is measured

   The evidence and metrics that will be used to judge progress at each review.

6. Consequences

   An honest statement of what happens if the standard is not met — clarity here is fairness, not threat.

7. Employee input & sign-off

   Space for the employee's perspective and a record that the plan was discussed, not simply issued.

Read the list and the theme is obvious: specificity everywhere. A plan a stranger could pick up and understand — what is wrong, what good looks like, and how it will be judged — is a fair plan. The next section separates this tool from the one it is most often confused with.

PIP vs a development plan

These two get confused constantly, and the confusion does real damage. One corrects; the other grows. Framing growth as correction demoralises a good performer; framing correction as "development" hides how serious the situation is. Keep them separate.

If someone is performing well and you want to invest in their future, you do not want a PIP at all — you want a development plan. See our guide to employee development plans for that. Everything below is specifically about the corrective case. Next: how to write one.

How to write one: 7 steps

Build the plan before the conversation, then use the conversation to introduce and refine it — not to spring it. Work through these seven steps.

A template you can copy

A performance improvement plan fits on a single page. These are the fields to fill — keep each one specific and factual, and write it so the employee, their manager, and a neutral third party would all read it the same way.

A worked example makes it concrete: for a sales rep missing target, the gap is "closed 40% of quota over the last two quarters", the goal is "reach 80% of quota within 90 days", the support is "weekly coaching plus a refresher on the new CRM", and progress is reviewed every fortnight. Specific throughout — which is exactly what the next section shows people get wrong.

Mistakes that make plans fail

A PIP fails for a small set of predictable reasons. Each one is avoidable, and each fix makes the plan both fairer and more defensible.

The pattern behind all five: fairness and specificity are the same thing here. A plan that is specific, supported, and reviewed is the one most likely to end in improvement — the outcome everyone should actually want.

The conversation and the outcome

The document is only half the job; the conversation is the other half. How a plan is introduced largely decides whether the employee engages with it or shuts down. Lead with the facts, not a character judgement; be clear that the goal is improvement, not exit; and give the person genuine space to respond — they may have context, or need support you had not considered. A plan delivered as a partnership lands very differently from one delivered as a verdict.

Whatever the result, keep the tone consistent throughout — respectful, specific, and focused on the standard rather than the person. And remember that a PIP addresses a gap that has already opened; the better long-term investment is preventing gaps in the first place through good management and development. For that side, see our guide to training and development in HRM.

Where a learning platform helps

A performance improvement plan is a management process, not a piece of software — but its weakest link is usually the "support" part, and that is where a learning platform earns its place. The plan promises training and skill-building; a platform is how you actually deliver and evidence it.

1. Deliver the support

   Assign the specific courses and skill-building the plan promises, so "we'll provide training" becomes a real, trackable action.

2. Pinpoint the skill gap

   Skill-gap analysis helps confirm whether the shortfall is a capability gap training can close — useful evidence for a fair plan.

3. Track progress objectively

   Completion and assessment data give the review meetings concrete, neutral evidence rather than impressions alone.

4. Prevent the next one

   Strong onboarding and ongoing development stop many performance gaps opening in the first place — the better long-term fix.

Skills Caravan supports this side — delivering learning, running skill-gap analysis, and tracking progress — as part of a wider platform for development and retention. The bigger win is prevention: see our guide to employee development and retention.

Frequently asked questions