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Download a free performance improvement plan template (PIP form). Learn performance improvement plan HR best practices for 2025 and beyond.
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Managing employee performance is a critical, and often delicate, responsibility for HR managers. It's not just about addressing underperformance—it’s about offering support, setting clear expectations, and providing a fair opportunity for success.
One of the most effective tools at an HR team's disposal is a well-structured performance improvement plan template (PIP).
In this guide, we’ll walk you through everything you need to know: from what a PIP is, when to use it, best practices based on SHRM standards, and a free downloadable template to streamline your process.
A performance improvement plan (PIP) is a formal document that outlines specific performance deficiencies, sets clear goals for improvement, and defines a timeline for achieving these expectations.
Rather than serving as a mere disciplinary measure, a PIP is a proactive tool designed to:
According to SHRM, PIPs should focus on clarity, fairness, and mutual accountability, aligning with company values and the principle of giving employees a fair chance to improve.
Having a standardized performance improvement plan template ensures that:
A standardized PIP form ensures that important steps aren’t skipped, and expectations are always clear.
When building your performance improvement plan HR strategy, make sure your PIP template includes:
Basic details like employee name, position, manager name, and department.
Specific, objective descriptions of performance gaps. Avoid vague terms like "bad attitude" and focus on measurable behaviors.
Example:
Incorrect: "Poor communication"
Correct: "Fails to respond to client emails within 24 hours as required."
Clear, achievable goals tied to performance metrics.
Example:
"Respond to all internal and external emails within one business day over the next 60 days."
List training, mentorship, or resources available to the employee.
Example:
Outline key milestones, deadlines, and scheduled feedback sessions.
Explain what happens if improvement goals are not met (e.g., reassignment, demotion, or termination).
Signatures from the employee, manager, and HR representative showing agreement to the plan.
A performance improvement plan HR strategy is appropriate when:
However, PIPs should never be used punitively or without genuine intent to help the employee succeed.
Before initiating a PIP, managers should have a preliminary conversation with the employee to set expectations and maintain transparency.
Learn more about SHRM's guide to performance management best practices here.
Below is a ready-to-use PIP form tailored for HR managers:
Performance Improvement Plan (PIP) Template
Download a Free Full Printable Performance Improvement Plan Template
Building a great performance improvement plan HR process is more than just filling out a form. It's about setting up employees—and your company—for success.
Here are SHRM-style best practices to keep in mind:
Use specific, observable behaviors and data to describe performance issues. Avoid emotional language or generalizations. Instead of saying an employee has a “bad attitude,” document examples like missed deadlines or unprofessional client communication.
Maintain detailed records of performance concerns, meetings, feedback, and support offered during the PIP process. Proper documentation can serve as legal protection and ensures consistency.
Set achievable objectives based on the employee’s current responsibilities and timeframe. Goals should be clear, measurable, and aligned with organizational expectations.
Employees should feel supported, not threatened. Provide access to resources such as training, mentoring, or time management tools.
All PIP-related discussions should be handled discreetly. Use a secure HRIS platform to store documentation and ensure access is limited to authorized personnel only.
Today’s modern HRIS platforms take PIP management to the next level. Here’s how:
All PIP-related files—plans, progress reports, meeting notes, and outcomes—can be stored securely in one digital location. This ensures easy access for authorized personnel while maintaining confidentiality and data compliance.
HRIS tools allow you to set automated alerts for review dates, feedback sessions, and critical deadlines, ensuring accountability and timely follow-ups.
Track quantitative metrics like attendance, goal completion rates, and training participation. HRIS dashboards offer real-time insights that make it easier to evaluate progress.
Empower employees by giving them access to their PIP documents, expectations, and support resources—enhancing transparency and ownership of improvement efforts.
Pro Tip: Many HRIS systems include built-in or customizable PIP templates, helping standardize and streamline the process across departments.
While implementing a PIP, beware of these pitfalls:
At the end of the PIP period, HR and management should conduct a formal review. Possible outcomes include:
Following a structured process protects your organization legally and reinforces a culture of fairness and support.
A well-designed performance improvement plan template isn’t just an HR requirement—it’s a tool for transformation. When HR managers leverage PIPs effectively, they provide employees with clarity, support, and the opportunity to thrive.
Combining a strong PIP strategy with an agile HRIS platform gives your HR team the ability to monitor, document, and drive improvement systematically, while maintaining compliance with employment law and SHRM best practices.
Are you still managing performance improvement plans manually or struggling to keep up with follow-ups and documentation? If so, it might be time to consider automating your performance tracking with the help of a modern HRIS solution.
At Outsail, we specialize in providing free, unbiased consultations to help HR teams identify the best HRIS platforms for their unique needs. Whether you’re looking to streamline your PIP process, enhance payroll operations, or build a more comprehensive performance management system, our team can guide you toward solutions that align with your goals and budget.
Schedule your free HRIS consultation today and take the first step toward building a stronger, more transparent, and supportive performance culture in 2025.
