Performance Improvement Plan (PIP)
What is Performance Improvement Plan (PIP)?
Performance Improvement Plan (PIP) is a performance, learning, or leadership concept used to assess contribution, build capability, and guide employee growth. In an HR context, the term is used to describe a specific idea, practice, document, or arrangement that influences how employers manage people and work. In practice, people often shorten it to PIP.
Why Performance Improvement Plan (PIP) Matters
Performance Improvement Plan (PIP) matters because it helps organisations set expectations, coach effectively, recognise progress, and address performance issues in a structured way. HR teams need a clear understanding of the term to apply policy consistently, communicate expectations clearly, and make decisions that are both practical and compliant.
Common Examples or Use Cases
Performance Improvement Plan (PIP) commonly appears in appraisals, feedback cycles, leadership development, learning plans, disciplinary processes, and manager one-to-ones. The exact meaning can vary by employer, contract, and jurisdiction, so HR should define how the term is used internally and explain it in language employees and managers can follow.
Related HR Concepts
Related terms often help place Performance Improvement Plan (PIP) in context within the wider HR function: