A Performance Improvement Plan (PIP) is a tool used by employers to help employees improve their job performance. It is a structured document that outlines the steps employees must take to continue working at the business. A PIP covers specific areas of performance deficiencies, identifies skills or training gaps, and sets clear expectations for an associate’s future conduct. The PIP sets specific goals for the employee to achieve and outlines the steps that the manager and employee will take to help the employee reach those goals. PIPs can be used to improve the performance of individual employees or to improve the performance of a team or department.

The role of HR in a PIP is to work with the employees managers to determine whether a PIP is appropriate and to provide guidance to both the manager and employee for the duration of the plan. A PIP is warranted when an employee is underperforming, and their manager is committed to helping them improve in a timely fashion. It should not be used as the first step or basis for termination, as a "punitive" PIP won’t serve its intended purpose of helping the employee and can send the negative message that help does not exist for struggling employees.

When creating a PIP, it is important to keep the following in mind:

• Set specific goals for the employee to achieve.
• Outline the steps that will be taken to help the employee reach those goals.
• Ensure that the PIP is clear and specific in setting measurable goals and employee expectations.
• Document the employee’s progress and provide feedback to the employee on their performance.

In summary, a PIP is a tool used by employers to help employees improve their job performance. It is a structured document that outlines the steps employees must take to continue working at the business. The PIP sets specific goals for the employee to achieve and outlines the steps that the manager and employee will take to help the employee reach those goals. HR works with the employees managers to determine whether a PIP is appropriate and to provide guidance to both the manager and employee for the duration of the plan.