Performance Improvement Plan (PIP)
A structured document that sets out clear performance expectations for an underperforming employee, with specific goals, timelines, and consequences for failure to improve.
A Performance Improvement Plan (PIP) is a formal management tool used when an employee's performance falls significantly below expectations. It documents the specific areas of concern, sets measurable targets for improvement, defines the timeline (typically 30–90 days), and specifies the consequences if performance does not meet the agreed standard — up to and including dismissal.
PIPs have a mixed reputation. Used well, they provide underperforming employees with a clear path to recovery and protect employers from claims of unfair dismissal by demonstrating a structured process. Used poorly — or deployed as a formality before a predetermined dismissal — they erode trust and morale, not just for the employee involved but for the wider team.
Remote PIPs require additional consideration around communication cadence and support. Without the natural check-ins of an office environment, remote managers must be more proactive in providing guidance and feedback during a PIP period. Documentation of all conversations is especially important when managing remote performance issues.