How to run a Performance Improvement Plan (PIP)

Poor performance (capability) and misconduct are handled differently. A PIP is for someone who is trying but isn't meeting the required standard — for example due to a skills gap, unclear expectations, or a change in role demands. If the employee could do the job but is choosing not to (e.g. deliberately cutting corners), that's more likely a conduct matter for the disciplinary process instead.

Unless performance is seriously and immediately affecting the business, give informal feedback and support before jumping to a formal PIP. Document these informal conversations — they show the employee wasn't blindsided by the formal plan, and demonstrate you tried the least formal route first.

Explain clearly, with specific examples, where performance is falling short. Avoid vague statements like "needs to try harder" — be precise about what good performance looks like and how it differs from what's happening now. Let the employee respond and give their perspective; there may be a reason you're not aware of, such as unclear training, unrealistic targets, or a personal circumstance.

Objectives should be concrete enough that both sides can agree, at the end of the review period, whether they've been met — for example "reduce order processing errors to under 2%" rather than "be more careful." Vague objectives make the whole process harder to defend if it ends in dismissal, because there's no objective way to show the employee failed to meet a clear standard.

A PIP that sets targets but offers no real help to meet them is unlikely to be seen as fair. Support might include additional training, more frequent check-ins, a mentor, adjusted workload while skills develop, or clearer written guidance. What's proportionate depends on the size of the gap and the resources available to the business.

Don't wait until the end of the review period to give feedback. Regular check-ins (e.g. weekly or fortnightly) let you flag if things aren't improving early, adjust support if needed, and give the employee a genuine chance to course-correct rather than finding out everything at once at a final meeting.

At the end of the plan, there are broadly three outcomes: the objectives have been met and the plan closes; there's been some improvement and the plan is extended with revised targets; or there's been little or no improvement and you move to a formal capability process, which may ultimately include dismissal. Confirm whichever outcome applies in writing, with the reasoning.