Performance improvement plan (PIP): a fair process guide

A performance improvement plan (PIP) is a written, time-bound plan that tells an employee exactly where their performance falls short, what they must achieve to close the gap, what support they will get, and how and when progress will be reviewed. A typical PIP runs 30, 60 or 90 days with weekly or fortnightly check-ins. Used honestly, it gives a struggling employee a real chance to succeed and gives the company a fair, documented record whatever the outcome.

This guide covers when a PIP is the right tool, how to write measurable goals, how long it should run, the review meetings, possible outcomes, legal care and a template structure. A PIP usually follows from the appraisal record, so see our guide to the performance appraisal process, and for why a forced rating alone is a weak basis for action, see the bell curve in performance appraisal.

When should you use a performance improvement plan?

A PIP is for a capability or performance gap that has persisted despite normal feedback. It is not the right tool for everything.

Situation	Is a PIP right?	Better approach
Consistent shortfall against clear goals over two or more review periods	Yes	PIP with measurable targets
A new joiner struggling in the first months	Usually no	Probation review and extension, as in our guide to probation and confirmation
Performance dropped suddenly after a personal or health issue	Not yet	A conversation, support and adjustments first
Misconduct: fraud, harassment, insubordination, absenteeism	No	The disciplinary process; see disciplinary action and domestic enquiry
Goals were never set or communicated	No	Set and agree goals, then review after a fair period
The role changed and the person lacks the new skills	Sometimes	Training first; a PIP if gaps remain

Before starting a PIP, the manager should be able to answer yes to three questions: Were expectations clear? Has the employee had specific feedback before? Is the gap measurable?

How do you write measurable PIP goals?

Vague goals make a PIP unfair and hard to assess. "Improve communication" cannot be passed or failed. Each goal should be specific, measurable, achievable in the time given, relevant to the role and dated.

Weak goal	Measurable goal
Improve sales performance	Achieve at least 85% of the monthly collection target in each of months 2 and 3
Be more accurate	Payroll inputs processed with no more than 2 errors a month, measured in the monthly reconciliation
Respond to customers faster	Close 90% of tickets within the 48-hour service level each fortnight
Show more ownership	Submit the weekly status report by 6 pm every Friday with all open issues listed

Limit a PIP to three or four goals. If there are ten problems, pick the ones that matter most for the role.

Worked example: a sales PIP target

Arjun is a territory sales executive with a monthly collection target of ₹15,00,000. Over the last two quarters he averaged ₹9,00,000 a month, which is ₹9,00,000 ÷ ₹15,00,000 = 60% of target. His peers in comparable territories average 92%.

His 90-day PIP sets a stepped target:

• Month 1: at least 75% of target, so ₹15,00,000 × 75% = ₹11,25,000
• Months 2 and 3: at least 85% of target each month, so ₹15,00,000 × 85% = ₹12,75,000

Supporting goals: 25 qualified customer visits a week logged in the field app, and weekly pipeline reviews with his area manager. The stepped target recognises that pipelines take time to build, while still requiring a clear improvement from 60% to 85%. Where peers in similar territories are well above the PIP threshold, the target is demonstrably achievable, which is important for fairness.

How long should a PIP last?

Duration	Suits	Check-ins
30 days	Roles with short feedback cycles: support, operations, transactional work	Weekly
60 days	Most individual contributor roles	Weekly or fortnightly
90 days	Sales cycles, managerial roles, project-based work	Fortnightly, with a mid-point review

The duration should allow enough data to judge improvement. A 30-day PIP for a role where results show up quarterly is not a genuine chance. Extending a PIP once, for a stated reason such as approved leave during the period, is reasonable. Repeated extensions suggest the goals were wrong.

What support should the employee get?

A PIP is a two-way commitment. The support section should be as concrete as the goals.

• Manager time: a fixed weekly or fortnightly review, in the calendar.
• Training: named courses or on-the-job coaching, with dates.
• Resources: tools, data access or a lighter load on other tasks during the PIP.
• A buddy or mentor, where it helps.
• HR contact: a named HR partner the employee can approach.

If the plan promises training and the training never happens, the outcome of the PIP is hard to defend.

How should a PIP be documented?

Records protect both sides. Keep them factual and dated.

1. The PIP document, signed or acknowledged by the employee. Acknowledgement means they received it, not that they agree.
2. The evidence of the gap: appraisal ratings, goal achievement, error logs, customer complaints.
3. Check-in notes after every review: progress against each goal, support given, actions agreed.
4. The employee's comments. Give space for their view in writing.
5. The final review note with the outcome and reasons.

Store PIP records in the employee's file with restricted access, and keep them for the period your retention policy sets. See our guide to HR records retention.

How do you run the PIP meeting?

The opening meeting

• Hold it in private, with the manager and an HR representative.
• Explain the gap with evidence, then the goals, support, check-in dates and possible outcomes.
• Make clear that the aim is improvement, and that the company wants the employee to succeed.
• Let the employee respond. If they raise a reason the manager did not know, such as a health issue or a workload problem, pause and look into it.
• Share the written plan the same day.

Check-ins

Short and regular. Review each goal against data, note what support was given, and agree the next actions. If the employee is clearly on track, say so.

The final review

Assess each goal against its measure and record the decision with reasons.

What are the possible outcomes of a PIP?

Outcome	When	Next step
Successfully completed	All or substantially all goals met	Close the PIP in writing; continue normal reviews
Partially met, clear progress	Most goals met and the trend is strong	A short, documented extension, once
Redeployment	Gap is about fit with the role, not effort	A suitable role, if one exists, agreed with the employee
Not met	Goals clearly missed despite support	Separation, handled under the contract, standing orders and applicable law

If employment ends, the full and final settlement follows the normal rules for notice pay, leave encashment and gratuity where eligible; the full and final calculator gives an estimate.

What legal care does a PIP need in India?

This is an area to take advice on. Some general principles:

• Category of employee matters. For employees who fall within the definition of "worker" under the Industrial Relations Code, 2020, ending employment needs particular care: depending on the facts, it may be treated as retrenchment with its own notice and compensation requirements, or require a process under your standing orders. For managerial staff, the appointment letter's termination clause usually governs. See our guide to standing orders under the Industrial Relations Code.
• Fair process. Clear expectations, documented feedback, a reasonable period, real support and a chance to respond are the elements most likely to be examined if a decision is challenged.
• No sham PIPs. A PIP opened when the decision to exit has already been taken, with unachievable targets or no support, defeats its purpose and is a weak record if challenged. If the real reason is restructuring, deal with it as restructuring.
• No discrimination or victimisation. A PIP that follows closely after a POSH complaint, a maternity return or a grievance needs extra scrutiny for timing and evidence.
• Consistency. Similar gaps should lead to similar treatment across teams.

A PIP template structure

Section	Content
Employee details	Name, ID, role, grade, manager, HR partner
Background	Summary of the gap with evidence and prior feedback dates
Goals	Three or four measurable goals with targets and dates
Support	Training, coaching, resources, manager time
Review schedule	Dates of every check-in and the final review
Outcomes	What happens if goals are met, partly met or not met
Acknowledgement	Employee acknowledgement of receipt, and space for comments

Common mistakes

• Using a PIP as a formality before a decision already made.
• Goals that cannot be measured, or targets no peer achieves.
• Promising support that never arrives.
• Skipping check-ins and meeting only at the end.
• Using a PIP for misconduct, which belongs in the disciplinary process.
• No written record of the employee's response.
• Treating similar cases differently in different teams.

FAQs

What is a PIP in HR? A performance improvement plan: a written, time-bound plan setting out a performance gap, measurable goals, support and a review schedule.

How long is a performance improvement plan? Usually 30, 60 or 90 days, depending on how quickly results in the role can be measured.

Does a PIP mean you will be fired? Not necessarily. A genuine PIP aims at improvement, and many employees complete one successfully. If goals are not met despite support, separation is one possible outcome.

Can an employee refuse to sign a PIP? They can decline to agree with it, but they should acknowledge receiving it. Record any refusal and their comments, and continue the process.

Can a PIP be extended? Yes, once and for a stated reason, such as approved leave during the period or strong progress that needs a little more time.

How NeevHR helps

NeevHR performance holds weighted goals, appraisal cycles and multi-year performance history on one record, which gives managers and HR the evidence a fair PIP needs. Learning assigns and tracks the training a plan promises, and documents keeps signed letters and records in the employee's vault. Book a demo to see how goals and reviews connect.

This article provides general information for educational purposes. Statutory rules, thresholds, rates and filing requirements may change; verify with the relevant authority or a qualified professional. Last reviewed: 27 Oct 2026.