HR & performance glossary
What is a performance improvement plan?
Performance improvement plan (PIP): A formal, time-bound plan that sets out where an employee is falling short, what good performance looks like, the support on offer and when progress will be reviewed.
A performance improvement plan, or PIP, is a formal, time-bound document that sets out where an employee's performance is falling short, what good performance looks like, the support they will receive and the date by which progress will be reviewed. It is typically used after informal feedback has not resolved a problem, and it often sits alongside an organisation's capability or disciplinary procedure.
A fair PIP is specific. It names the gap with examples rather than impressions, sets a small number of measurable objectives, commits to concrete support such as training, coaching or more frequent check-ins, and schedules review points before the end date. The employee should be able to see exactly what would count as success. Where employment law or a works council sets requirements for the process, those take precedence, and HR should be involved from the start.
A PIP is only as credible as the record behind it. If the first documented concern appears in the plan itself, the process looks like a formality rather than an attempt to help. Continuous performance management builds that record as work happens: in CLEAR Talent, managers log observations in a performance journal and capture coaching from 1-on-1s as development notes, both tagged to competencies. Changes to goals and ratings are written to the audit trail kept by the performance review software, so the history is visible if a decision is questioned later.