PIP Template: Performance Improvement Plan With Worked Example
A performance improvement plan is a written agreement between a manager and an employee that sets out the specific gap, the standard the employee must reach, the support the employer will provide, the timeline, and the consequence of not closing the gap. A well-written PIP is one of the most legally and ethically significant documents a line manager ever writes. This page is the template, the legal cautions, and a complete worked example.
Updated 11 May 2026
When a PIP is the right tool
A PIP is the right tool when three conditions hold. The performance gap has been raised in writing in at least one prior 1:1 or review, so it is not a surprise. The gap is specific enough to measure against a clear standard. The employee has the capability to close the gap with reasonable support; the issue is not a misaligned role, in which case a role conversation is the right tool instead.
A PIP is not the right tool when used as a paper trail to support an already-decided termination. Courts and employment tribunals in the UK, US, and EU read that pattern in the documentation. It is also not the right tool for one-off behavioural incidents (which belong in a written warning) or for redundancy and restructuring (which have their own statutory processes).
SHRM and CIPD guidance is consistent on this: the PIP should be a genuine attempt to retain the employee. The framing in the document and the manager's conduct during the PIP both signal whether that is true.
The five required sections
1. The specific performance gap. Three to five bullet points naming the gap. Each bullet is a fact, not an interpretation. Wrong: “Not a team player.” Right: “Missed three of the last four sprint commitments by an average of two days.”
2. The standard. What does meeting the bar look like, in measurable terms. “Ship committed sprint work on time on at least seven of the next eight sprints.”
3. The support. What the employer commits to: weekly 1:1, technical pairing time, a named mentor, additional training. The support section signals whether the PIP is a genuine attempt at retention.
4. The timeline and review dates. PIPs are usually 30, 60, or 90 days. Each milestone is a written checkpoint. Skipping the mid-PIP check-in is the single most cited procedural failure when PIPs are challenged later.
5. The consequence if the PIP is not met. Must be stated explicitly. Usually: termination of employment. Acceptable variants include reassignment or further formal process. Vague phrasing here is read as bad faith.
Behavioural PIP versus performance PIP
The PIP shape is similar in both cases but the gap section and the standard section are written differently.
| Aspect | Performance PIP | Behavioural PIP |
|---|---|---|
| Gap | Missed objective output (sales quota, ship rate, defect rate) | Specific incident or pattern (disrespect in meetings, missed commitments, conflict with peers) |
| Standard | Quantitative target with measurement method | Observable behaviour stated in concrete terms |
| Support | Training, pairing, mentor, reduced scope | Coaching, feedback cadence, often an EAP referral |
| Timeline | Aligned to the work cycle (sprint, quarter) | Usually 60 to 90 days |
| Documentation | Numeric tracking against the standard | Manager observation log, kept up to date weekly |
Legal considerations
This page is general guidance, not legal advice. Employment law differs materially by jurisdiction. Before issuing a PIP that could result in termination, route the draft through HR or employment counsel in your jurisdiction. The following considerations come up repeatedly across UK, EU, and US employment-law guidance:
- Protected characteristics. Document that the performance issue is unrelated to a protected characteristic (age, sex, race, disability, pregnancy, religion, sexual orientation, union activity). A PIP issued shortly after disclosure of a protected status invites scrutiny.
- Reasonable adjustments. If the employee has a disclosed disability or mental health condition, the PIP must factor in reasonable adjustments. The support section should reflect this explicitly.
- Procedural fairness. The employee should have been told the standard before the PIP existed; the PIP should not be the first time the gap is raised. Hand-deliver and sign the document; record the meeting in the manager log.
- Right to representation. In the UK, the employee has a statutory right to be accompanied in the PIP meeting. In the US this varies. Tell the employee they may bring a representative or colleague.
- Constructive dismissal risk. A PIP set up to be unachievable (e.g. a target 40 percent above the team's top performer) can amount to constructive dismissal. The standard must be realistic for the role.
Worked example: underperforming AE
Sales rep, 14 months tenure, mid-market AE. Closed 38 percent of quota in Q2; team average 92 percent. Issue raised in two prior 1:1s and the Q2 review.
Performance gap. (1) Closed-won revenue at 38 percent of quota in Q2 against a team average of 92 percent. (2) Stage-two opportunity creation at 4 per month against a team average of 9. (3) Discovery-to-stage-two conversion at 11 percent against a team average of 28 percent.
Standard. Across the 90-day PIP window, close 70 percent of monthly quota in at least two of three months. Create at least 8 stage-two opportunities per month. Achieve at least 22 percent discovery-to-stage-two conversion.
Support. Weekly 60-minute 1:1 with the manager. Two pairing sessions per week with a senior AE on discovery and demo. Re-enrolment in the discovery certification course. Reassignment of two oldest stagnant opportunities to free up calendar.
Timeline. 90 days, starting on the date of signature. Mid-PIP review at day 45, with written status. Final review at day 90.
Consequence. If the standard is not met at day 90, employment will be terminated subject to the company's standard termination process and applicable notice provisions.
Related
- → Employee performance plans: PIPs, development plans, review frameworks
- → SMART goals framework (used in the PIP standard section)
- → New manager 30 60 90 day plan (for managers running a PIP for the first time)
- → How to write an action plan