Performance Improvement Plan | Meaning

What is a Performance Improvement Plan?

A performance improvement plan (PIP) refers to a document that intends to support employees who are not satisfying job performance goals. Under the umbrella of PIP (performance improvement plan), training gaps, skill gaps, performance efficiencies, etc., are covered along with the precise expectations of conduct and performance in the workplace. After participating in a performance improvement plan, an employee must be able to crank up their performance within a given time period, else termination might be considered HRs work with managers of an employee in a performance improvement plan to decide whether it is appropriate and determine the duration of PIP.

PIP or a Performance Improvement Plan is also called a performance action plan which is a critical tool used by employees to identify and evaluate performance-related deficiencies. It may be employed to convey the opportunities for success by helping the employees achieve the goals and objectives of the job and enhance their overall performance and thus, productivity at work. Outcomes may differ which involves improvement in the overall performance, identification of training gap or skill gap, etc. 

PIP (Performance Improvement Plan) is deemed an integral part of Human Resources strategy when a worker is performing up to the expectations of the company. An HR can decide if PIP is the right option by analyzing the whole situation and thus, in the end, guide both employee and manager during the Performance Improvement Process (PIP).

Once the analysis is done during the PIP process, a necessary action that is to be taken is determined such as working under another manager or team leader, transferring, shifting the employee to another department, or finally considering termination.