Managers often create a performance improvement plan after issuing at least one verbal or written warning, although the process varies at different employers. Once placed on a PIP, employees usually have 30, 60, or 90 days to achieve their goals. 

Example of a Performance Improvement Plan

Most performance plans include the following sections:

Employee Information

This includes your name, job title, manager’s name, and date the plan was issued. 

Statement of Purpose

In the first line or first paragraph, the manager will summarize the problem. For example, if you’re not hitting sales targets, your manager would specify the goal and how your performance is falling short. 

Desired Outcome

The plan should state what you need to do to succeed within these parameters. In the example of not hitting sales goals, your manager might say that you need to hit 75% of the goal in the next 60 days to meet expectations. 

Metrics for Success

The more specific the PIP is, the easier it will be to succeed. Look for metrics specifying targets of time, clients retained or signed, money saved or earned, etc. 

Action Plan

The document should outline how often you’ll meet with your manager, what results you’ll be measuring, and what the desired outcome will be. 

Pros and Cons of PIPs

Pros Explained

Opportunity for improvement: Assuming the employer is acting in good faith and designs the PIP to clearly define progress, this document can be a tool that helps you perform better.May provide time to find a new job: In the worst-case scenario, a PIP may function as a final warning—and thus a nudge to start looking for your next role. 

Cons Explained

May fail to outline specific KPIs: A performance improvement plan is only as good as the person who designed it.  Does not guarantee continued employment: Most U.S. workers are employed at will, which means that they can be fired at any time, even in the middle of a performance plan. 

What Should You Do If You’re Put on a Performance Improvement Plan?

If your manager at work puts you on a performance improvement plan, review it carefully. Make sure you understand why you’re being put on this plan and what the intended outcome is. It’s important to reflect on why you may have been underperforming or underproducing at work. Ask your manager questions, and organize your schedule and work so that you can follow the PIP and get back on track with your team and company. Make sure you understand what happens if you do not accomplish the PIP. Failing to meet the plan’s goals and deadline could result in termination. So if you feel like you may not be able to meet the expectations, it’s important to start thinking about your next move. Maybe your current job is not the right fit, and that’s OK. You might want to start searching for a new job then.