Performance Improvement Plan Template & Guide [Free Download]

A performance improvement plan template helps you create a clear, structured plan to address employee performance gaps. It outlines specific goals, actions, and timelines so employees understand what needs to improve and how to get there.

Download the performance improvement plan template as a Word document, Excel sheet, or editable PDF. Next, let’s unpack how HR can implement and support PIPs to drive meaningful performance improvement.

Contents
What is a performance improvement plan?
What to include in a performance improvement plan
When to use a performance improvement plan
How to write a performance improvement plan: 5 steps
Free performance improvement plan templates
Performance improvement plan examples
Sample performance improvement plan
How to conduct a PIP meeting
Performance improvement plan best practices
What happens at the end of a performance improvement plan
FAQ

What is a performance improvement plan (PIP)?

A performance improvement plan, or PIP, is a formal document used to help an employee improve specific areas of underperformance. In HR, a PIP outlines the performance issue, the expected standard, the actions the employee needs to take, the support they will receive, and the timeframe for improvement.

A PIP is typically used when an employee is not meeting job expectations but still has a realistic opportunity to improve. When used correctly, it can be a practical tool to align managers and employees, clarify expectations, and support better performance.

Each PIP should be tailored to the employee’s role, the issue being addressed, and the support required. It is not a one-size-fits-all document and should be created with input from the manager, the employee, and HR.

What does PIP mean in HR?

From an HR perspective, a performance improvement plan is not just a document; it’s a process that needs careful oversight. HR ensures the plan is applied consistently, supports both the manager and employee, and keeps the focus on fair, achievable improvement. This includes:

• Determining whether a PIP is appropriate for the situation
• Working with managers to create the PIP to prevent bias and achieve the best outcomes
• Guiding employees and managers throughout the process
• Regularly check that targets are being met, as PIP objectives should always include deadlines to ensure accountability.

What to include in a performance improvement plan

A performance improvement plan should clearly document the performance issue, the expected standard, the actions required for improvement, and the support the employee will receive. It should also set out how progress will be measured and the timeframe for improvement. This aligns with AIHR’s approach to employee goal setting, which emphasizes clear, measurable objectives so employees understand what success looks like and how progress will be tracked.

What should a performance improvement plan include? At a minimum, it should cover:

• Employee name, job title, and manager’s name
• The specific performance issue or area of concern
• The expected standard of performance
• Clear objectives and action steps for improvement
• The support, training, or resources that will be provided
• Review dates, deadlines, and check-in points
• How progress will be measured
• The possible outcomes if the required improvement is achieved or not.

A clear PIP format helps managers and HR apply the process consistently, while still allowing the plan to be tailored to the employee, role, and situation.

When to use a performance improvement plan

A performance improvement plan (PIP) is often associated with serious underperformance and seen as the first step toward termination. However, it can also be used earlier to address performance issues before they escalate.

A PIP is most appropriate when an employee is not meeting expectations but still has a realistic opportunity for improvement. It helps clarify performance gaps, set clear expectations, and provide a structured path forward with defined goals, timelines, and support. It can also be useful when someone has moved into a new role and needs additional guidance to succeed. In these situations, AIHR’s performance coaching offers a useful complement by showing how managers can use structured coaching and regular conversations to help employees overcome barriers and improve performance.

Using a PIP as soon as a performance issue is identified can help create a culture where feedback and improvement are part of normal performance management, rather than something employees only associate with failure.

If a valued employee is struggling to meet expectations, a targeted PIP can help identify the issue and outline a practical personal improvement plan for work.

What an effective PIP should entail: Tips from an AIHR’s subject matter expert

• Ensure that an PIP is the right solution for the performance issue. In some cases, poor performance is the symptom of other underlying problems. For example, an employee may be experiencing personal issues that impact their performance. Before starting a PIP, ensure that you understand the reasons for non-performance and that the objectives of the PIP align with this.
• PIPs are done with the employee, not to the employee. This should be a co-created plan of action based on mutually agreed objectives, with clear timelines and milestones to achieve. For any PIP to be successful, the employee must actively participate in the process.
• Be clear about the outcomes, both good and bad. A PIP should also clearly articulate the outcomes of successful or unsuccessful implementation. If the objectives are achieved, when will the next review take place? If the goals are not achieved, what are the next steps that need to be taken? Clarity upfront is critical for fair and transparent communication. 
• Create an environment that supports the PIP. Creating a supportive environment and the tools required for success is just as important as the plan – a PIP is not an ‘easy way out’ for the manager or organization. Often, employees don’t have the resources or support they need to reach their performance goals, and the organization must equip them with it.
  

Dr. Marna van der Merwe, Research & Insights Lead at AIHR

How to write a performance improvement plan: 5 steps

Use this simple checklist to create a performance improvement plan:

Step 1: Assess whether the performance improvement plan is necessary 

PIPs take time to design, implement, and follow, and they can distract from day-to-day work. Before putting one in place, assess whether it is the right response to the issue and whether there is a realistic opportunity for improvement.

• Consider whether the employee is valued by the team or organization
• Assess whether the performance issue can realistically be resolved
• Determine whether the likely outcome will be positive for both the employee and the business
• Evaluate whether a structured plan is the most appropriate next step.

If the answer to these questions is yes, a performance improvement plan may be the right next step.

Step 2: Involve the employee

Performance improvement plans should support employees, not just evaluate them. Involving the employee from the start can help create clarity, encourage buy-in, and identify what support they need to improve.

• Outline the expected performance for the role
• Highlight where improvement is needed
• Ask the employee how they think their performance can be improved
• Discuss what support, resources, or guidance would help them succeed
• Use the conversation to agree on realistic expectations and next steps.

Step 3: Draft the performance improvement plan

HR plays an important role in assisting managers in drafting the performance plan, helping them document the issue clearly and set realistic expectations for improvement.

• Define what is acceptable performance
• Unpack how a specific performance has not met this criterion
• Find the root cause of the issue
• Create measurable objectives that will allow the employee to meet performance criteria
• Set SMART goals that give employees a clear roadmap for improvement. AIHR’s guide to SMART goals explains how to make goals specific, measurable, achievable, relevant, and time-bound.
• List the actions and define which milestones must be met
• List the criteria that will be assessed and the deadline dates
• Emphasize the positive outcomes that improved performance will result in for the employee and the business.

Step 4: Define the resources, training, or coaching that will be provided

• HR and the manager can work together to determine what support the employee needs and what support the manager needs.
• Employees should also be given the opportunity to request the type of support they believe will most benefit them
• Is there a budget available, and has this been defined according to the benefits of improved performance?

Step 5: Schedule regular check-ins to ensure milestones are met

• HR should check in with the manager to understand how the employee is progressing
• HR should also ensure that the manager is scheduling regular check-ins with the employee
• These check-ins should be clearly defined in the PIP with specific deadlines.

Free performance improvement plan templates

The free performance improvement plan template is available as a Word document, an editable PDF, and an Excel sheet.

Employee performance improvement plan template: Word

A performance improvement plan template Word file is a flexible, editable document that allows managers and employees to collaboratively outline performance goals, action steps, and timelines.

Performance improvement plan form: Editable PDF

A PIP template in an editable PDF format is a clearly structured, fillable, and printable document that ensures consistency while allowing for customization of goals, milestones, and timelines.

Employee improvement plan template: Excel

An employee performance improvement plan template in Excel is excellent for setting performance goals and tracking progress, enabling managers and employees to monitor performance metrics and make adjustments as needed.

Performance improvement plan examples

Below are practical performance improvement plan examples you can adapt for common HR scenarios. These PIP examples cover issues such as attendance, missed deadlines, poor customer service, and missed sales targets.

Example 1: Chronic absenteeism and lateness

Goal:	Reduce absenteeism
Objectives:	No absences for 8 weeks, arrive on time for shifts
Problem:	To achieve the above objective, the PIP should clearly demonstrate to the employee how their absences and late arrivals are impacting their colleagues and the businesses. Next, the root cause for the absence should be determined – for example, is it a transport or childcare issue?
Plan:	Based on the challenges an employee is facing, a support structure can be put in place. For example, perhaps this employee needs access to more reliable transport, or perhaps they need to switch shifts to be able to look after a child.
Check-ins:	Every Monday at 9 am for the next 8 weeks
Metrics:	To achieve the above objective, the PIP should clearly demonstrate to the employee how their absences and late arrivals are impacting their colleagues and the business. Next, the root cause for the absence should be determined – for example, is it a transport or childcare issue?

Example 2: Persistently missing design deadlines

Goal:	To ensure deadlines are met
Objectives:	To ensure that a graphic designer meets their design deadlines and that social media campaigns can go live on time as a result.
Problem:	The employee is an excellent designer who is unable to meet deadlines, resulting in social media marketing campaigns that are presented after the due date. As a product-based business, this results in lost sales. The problem is determined to be time management and an unnecessary focus on detail. It is determined that time management training will be beneficial and that an art director will make quick decisions to support the sign-off of artwork.
Plan:	Define how long each job should take so that the designer understands the expectations of speed versus delivery. Support the designer with time management training and time tracking tools so that they know how long to spend on jobs. Adjust the process so that the art director will give approvals earlier (according to a schedule) so that the designer does not need to worry that they could have done a better job.
Check-ins:	Fridays at 10 am to review the week’s deadlines.
Metrics:	Time spent on jobs, deployment of assets within deadlines.

Example 3: Poor team performance

Goal:	Improve the general motivation and morale of a mid-manager
Objectives:	To help a mid-manager inspire their team to greater productivity by developing their own motivation and positive attitude.
Problem:	It has been identified by a team supervisor that one of the teams in their business unit is underperforming compared to the other teams in the unit. The problem is the manager, who appears unmotivated, negative, and is not on top of team reports and feedback sessions. As the team was previously a top-performing team, the first step is to identify changes in the manager’s life and outlook so that an action plan can be put in place. It is also important to show, through data, how their recent change in attitude is impacting the entire team.
Plan:	To address the issue, management training will be implemented, a mentor assigned to address motivation and negativity, and key performance metrics put in place linked to performance bonuses.
Check-ins:	Wednesdays at 2 pm to review the week’s performance wins and upcoming goals.
Metrics:	Team productivity and customer satisfaction

Example 4:  Poor customer service

Goal:	Improve the level of service customers receive
Objectives:	To achieve better customer retention and engagement.
Problem:	Clients are complaining about the lack of support they receive from a particular employee, and the business is receiving negative reviews and ratings online. What caused the problem? Is it an attitude issue, or does the employee lack the knowledge to support customers? It is also determined that this call center agent spends 5 minutes per call when the average call time is 15 minutes. Is the employee rushing through calls, or do they lack the product knowledge to offer real support?
Plan:	Product training and customer service training, with clear instructions to increase average call times to 15 minutes. If this is an issue, additional product training will be undertaken.
Check-ins:	Fridays at 10 am to review call logs.
Metrics:	Call duration, net promoter scores, and customer churn rate.

Example 5: Consistently missed sales targets

Goal:	To increase closed deals by 40%
Objectives:	To improve overall sales targets and revenue
Problem:	A sales rep is consistently missing sales targets, even though they project that they will close their deals. Budgets are based on these sales projections. It is determined that the problem is that the sales rep is not adding enough new customers to their pipeline and does not put the required effort into deals to ensure they are closed.
Plan:	The sales rep must spend 10 hours per week cold calling in order to set up 6 meetings per week with new clients. They should also have 4 meetings per week with retention clients and 2 meetings with clients at the end of the sales funnel
Check-ins:	Monday mornings at 8 am for the next 6 months.
Metrics:	Sales calls, meetings booked, deals closed.

Sample performance improvement plan

Here is a sample view of a performance improvement plan based on the above example to provide you with an idea of how to complete your PIP document: 

How to conduct a PIP meeting

Knowing how to deliver a PIP matters just as much as writing the plan itself. A performance improvement plan meeting should be clear, respectful, and focused on improvement. The goal is to explain the issue, walk the employee through the plan, and ensure they understand what is expected, what support will be provided, and how progress will be reviewed, so the employee’s PIP process feels clear and constructive rather than punitive. This also reflects AIHR’s broader emphasis on continuous feedback, where regular, constructive conversations help employees understand expectations and act on feedback more effectively.

Whether this is a pip meeting with HR, the employee’s manager, or both, the conversation should not feel like a one-sided announcement. Delivering a performance improvement plan well means giving the employee space to respond, ask questions, and understand what happens next.

Here are some key steps to follow when conducting a performance improvement plan meeting:

1. Prepare for the meeting: Before the meeting, make sure the performance concerns are clearly documented and supported by examples. Review the plan in advance so you can explain the issue, the expected standard, the goals, the deadlines, and the support available.
2. Explain the purpose of the PIP: Start the conversation by outlining why the meeting is taking place and what the PIP aims to achieve. Keep the tone direct but constructive so the employee understands that the purpose is improvement, not punishment.
3. Walk through the plan step by step: Review the performance issue, the expected standard of performance, the actions the employee needs to take, the support they will receive, and the review schedule. This helps reduce uncertainty and provides the employee with a clear path forward.
4. Give the employee a chance to respond: A pip meeting should be a conversation. Ask the employee for their perspective, listen carefully to their response, and clarify any barriers that may be affecting performance. This is an important part of how to talk to an employee about a PIP in a fair and constructive way.
5. Confirm the next steps: End the meeting by summarizing what happens next, when check-ins will take place, and how progress will be measured. The employee should leave with a clear understanding of the plan, the support available, and the possible outcomes.

Performance improvement plan conversation script

Managers and HR can use the following talk track as a starting point for a performance improvement plan meeting:

“Thank you for meeting with us today. We want to talk through some ongoing performance concerns and put a structured plan in place to help you improve.”

“The purpose of this performance improvement plan is to clarify expectations, explain where improvement is needed, and outline the support available to help you succeed.”

“We’ll walk through the specific concerns, the standard expected in your role, the actions needed to improve, and how progress will be reviewed.”

“This is also an opportunity for you to share your perspective, ask questions, and discuss any support you may need during the process.”

Performance improvement plan best practices

The performance improvement plan process should be clear, fair, and practical. Following a few best practices can help HR and managers use a performance improvement plan more effectively and improve the chances of a positive outcome.

Make the performance improvement plan specific to the employee

A PIP should be tailored to the employee’s role, performance issue, and level of support needed. A targeted plan is more effective than a generic one because it focuses only on the areas that need improvement while still recognizing where the employee is performing well.

Recognize when a performance improvement plan is not the best solution

A PIP is not the right tool for every situation. It should not be used as a tick-box exercise, to address serious misconduct, or to solve personal conflicts between employees and managers. It is most effective when there is a genuine belief that the employee can improve.

Set clear expectations and realistic goals

A PIP should clearly define the performance issue, the expected standard, and what success looks like. Goals should be specific, relevant to the role, and realistic within the agreed timeframe so the employee has a fair opportunity to improve.

Provide support throughout the process

A PIP should not be treated as a standalone document. Employees need the right support, resources, and regular check-ins throughout the process, whether that includes training, coaching, clearer guidance, or more frequent feedback from the manager.

Use metrics to track progress

Progress should be measured using clear and relevant metrics. Depending on the role, these may include performance reviews, 180-degree or 360-degree feedback, customer metrics such as Net Promoter Score, training metrics, or performance scales.

Address performance issues early

A PIP is more likely to succeed when performance issues are addressed early. If underperformance has been left unattended for too long, it becomes harder to identify the cause, reset expectations, and achieve meaningful improvement.

What happens at the end of a performance improvement plan?

At the end of a performance improvement plan, the employee’s progress is reviewed against the goals, timelines, and success measures set out in the plan. From there, there are a few possible outcomes depending on the level of improvement achieved.

• The employee meets the required objectives: If the employee has met the goals outlined in the performance improvement plan, the PIP can be concluded, and the employee can return to the normal performance management process. In some cases, the manager may continue to monitor performance for a short period to make sure the improvement is sustained.
• The employee makes partial progress: If the employee has made progress but has not fully met all of the objectives, the employer may decide to extend the plan, adjust the support being provided, or continue monitoring performance for a defined period. This will depend on the role, the level of improvement, and the likelihood of further progress.
• The employee does not improve sufficiently: If the employee has not met the required objectives, the next step will depend on the organization’s policies and the situation. This may include reassignment, further formal action, or termination. For this reason, the possible outcomes should be clearly explained at the start of the process.

To sum up

HR plays an important role in determining whether a performance improvement plan is necessary and whether it can be used effectively to bring about positive change. When done right, a PIP can be a tool that helps employees make positive improvements that benefit the business.

FAQ