What is a performance improvement plan (PIP)?

A performance improvement plan (PIP) is fundamentally a formal document intended to outline specific areas where an employee's performance is lacking and to specify the steps or actions the employee must take to improve in those areas. It is typically utilized when an employee is not meeting the expected performance standards, and the PIP serves as a structured framework to help the employee understand the performance expectations, provide the necessary resources or support, and set measurable goals for improvement within a designated timeframe.

The PIP establishes clear benchmarks for success so that both the employee and management can track progress. It's often part of a larger performance management strategy aimed at enhancing employee capabilities and ensuring alignment with organizational goals. By focusing on concrete steps toward improvement, the PIP serves as both a roadmap for the employee and a tool for management to assess future performance.

In contrast, a motivational tool is generally broader and may not have the specific, corrective focus that a PIP requires. Reports on workplace safety pertain more to compliance and risk management rather than individual employee performance. Meanwhile, methods for conducting employee evaluations do not inherently provide the structured support and developmental framework that a PIP does.