HR compliance, audits, and risk management services

What is the Purpose of a Performance Improvement Plan?

Let’s be honest. When an employee gets pulled into the manager’s office and is told they are being put on a Performance Improvement Plan, it’s never good. This is usually a sign that that employee is on their way out. But, there are proper channels which an employer must go through to lawfully and tactfully let an employee go, and a Performance Improvement Plan is an essential part of this process. And who knows, maybe you’ll be pleasantly surprised!

Even if you don’t see the improvements you’re hoping for, a Performance Improvement Plan (PIP) helps to reduce the risk that comes along with any termination. If you have made the decision to terminate the employee, it is best to wait until you have documentation that justifies the legitimate business reasons behind it.

A PIP will:

  • Define expectations for future performance.
  • Determine success going forward.
  • Set routine check-ins with employees to review progress.
  • Establish a time frame.
  • Explain the consequences for failing to meet and sustain improved performance.

What if a Performance Plan isn’t Right for you?

What do you do if you’re a manager and you don’t feel comfortable going through a PIP with someone on your team? Let’s say your teammate Jane keeps making mistakes, day after day. How do you move forward as a manager without having Jane fear for her job?

You hired Jane because she is smart and capable, so if something is going wrong at Jane’s desk, try looking at it as a team sport as opposed to a single-player game. Ping Pong can be played with one person repeatedly hitting the ball against the wall. But, this requires little skill, offers no challenge and is rarely fun. On the other hand, when two or more people join the game, camaraderie and teamwork come into play and things get much more interesting.

The same principles can apply to Jane. If all responsibility is on Jane to “fix” her performance issues, she will most likely fail. However, with you on her team to guide her and work alongside her, you two can easily take home the gold.

If under-performance continues, or there’s a failure to sustain improved performance, you may need to move on to termination. Whether you choose to use a PIP or an alternate route, make sure to document your process to demonstrate that you gave your employee a fair chance to improve. This record will make it more difficult for the employee to challenge the reason for a termination.

Tom truly understands what it means to support both people and business goals. From day one, he’s been attentive, reliable, and incredibly insightful. I trust him completely and always feel like I have a real partner in my corner.

Jackie Owens

He brings a level of professionalism, insight, and genuine care that’s hard to find. From complex HR issues to everyday support, he’s consistently gone above and beyond. I know I can count on him—not just to solve problems, but to help us grow the right way. He’s not just an HR consultant—he’s a trusted advisor.

James Gibbs

HR Employee Handbook

A tailored employee handbook is more than just a document—it’s a strategic tool that protects your business, aligns your team, and builds a confident and informed workplace.

Clearly outline your company’s values, policies, procedures, and culture in one central, up-to-date resource. You’ll reduce confusion, set the right expectations, and reinforce a culture of trust. It’s your go-to guide for consistency, compliance, and clarity—day in and day out.