A Performance Improvement Plan (PIP) is a formal, structured process used by organizations to address and improve an employee’s performance issues. The purpose of a PIP is to outline specific areas where an employee’s performance is lacking and to provide a clear roadmap for improvement. This plan typically includes detailed performance goals, a timeline for achieving these goals, and the resources and support available to help the employee succeed.
For example, if an employee in a sales role consistently fails to meet targets, a PIP might be implemented. The plan could outline specific sales goals, provide additional training, and set regular check-ins to monitor progress. If the employee fails to improve by the end of the PIP period, it may lead to further disciplinary action, including termination.
A PIP is not just a disciplinary tool but also a chance for employees to rectify performance issues with clear expectations and support.
Related Terms:
