How to Handle PIP (Performance Improvement Plan)

📂 Category: Human Resources

📁 Subcategory: Performance Management

📝 SOP Title: How to Handle PIP (Performance Improvement Plan)

🎯 Objective:

To provide underperforming employees with a structured opportunity to improve their performance within a 30-day timeframe, with clear expectations and evaluation.

👥 Roles & Responsibilities:

Role	Responsibility
Department Head	Recommends and defines performance issues
HR	Communicates the plan and tracks progress
CEO	Reviews case and approves final outcome

🛠️ Tools Required:

Google Docs or Email – For documenting the PIP
Slack/Email – For regular check-ins and updates

📅 Step-by-Step Process:

✅ Step 1: Identify Need for PIP

Triggers may include:

Repeated KPI non-achievement
Unprofessional behavior or low collaboration
High absenteeism
Lack of accountability despite prior warnings

Department Head discusses case with HR → Jointly escalate to CEO for approval.

✅ Step 2: Draft PIP Overview (Informal Doc or Email)

HR prepares a document/email outlining:

Reason for PIP (with examples)
Duration: 30 days
Expectations & Goals (quantitative/qualitative)
Check-in frequency: Weekly review with Department Head
Support offered: Coaching, training, shadowing if needed
Final Evaluation Date

✅ Step 3: PIP Communication to Employee

HR conducts a one-on-one call or meeting with the employee
Explain clearly:
- Areas that need improvement
- Review milestones
- Consequences (confirmation, extension, or exit)

Ask employee to acknowledge understanding via email or Slack message.

✅ Step 4: Monitor Progress Weekly

Department Head checks in weekly
Use an informal checklist for:
- Task delivery
- Attendance
- Communication
- Feedback from peers/clients (if relevant)

HR logs notes or progress emails if needed.

✅ Step 5: Final Review & Decision

At end of 30 days, HR and Department Head submit final assessment to CEO:

✅ Performance Improved → Employee continues
⏳ Partial Progress → Extend PIP (1 time only, 15–30 days max)
❌ No Improvement → Proceed to structured exit (with HR & CEO)

✅ Notes:

Maintain tone of support and fairness throughout
Don’t delay the PIP initiation if poor performance is consistent
Consider creating a simple template or checklist if more cases arise
Document everything for legal and ethical clarity