run-performance-improvement-plan

Run Performance Improvement Plan

Manage a direct report's documented performance gap through a structured, time-bound PIP with clear goals, regular check-ins, and defined success criteria — so both parties know exactly what is expected and what happens if those expectations are not met.

Why This Is Best Practice

Adopted by: The PIP is the standard structured underperformance management tool across enterprise HR systems globally; SHRM's "Managing Employee Performance" knowledge center documents the PIP as the industry-standard mechanism between informal feedback and separation; it is used at Google, Microsoft, Amazon, and all major employers as a legally documented intermediate step; HRCI (HR Certification Institute) includes PIP design and execution as a core competency in the PHR and SPHR certifications Impact: When executed correctly — with clear goals, regular check-ins, and genuine support — studies by CIPD (2020) show approximately 40–50% of employees on PIPs reach the defined performance standard; the primary value of a formal PIP is not termination — it is clarity: many employees on PIPs are succeeding in the wrong role, and the structured clarity of a PIP either surfaces the correct path or creates a legally defensible and humane record if separation becomes necessary; skipping the PIP and proceeding directly to separation exposes the organization to wrongful termination claims in most jurisdictions Why best: Informal feedback alone (give-developmental-feedback) fails for chronic underperformance because it lacks documented timelines, specific measurable standards, and defined consequences; performance reviews document the problem but do not provide a structured remediation path; the PIP bridges the gap between "we've had the conversation" and "we've given this person a real, documented, structured opportunity to succeed"

Sources: SHRM "Performance Improvement Plans: What Managers Need to Know" (shrm.org); CIPD "Managing Performance" guidance (cipd.org, 2020); HRCI PHR Body of Knowledge; Littler Mendelson "Termination Best Practices" (littler.com); Harvard Business Review "The Right Way to Use a PIP" (2016)