Performance improvement plan

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A Performance Improvement Plan or PIP is a set of explicit goals given to an employee to meet. These goals are usually given as a result of some failure, either dramatic or systemic, on the part of the employee. Properly done, a PIP gives an explicit list of those areas where the employee must improve, and what metrics they must meet. A PIP should be filed with the department of Human Resources because it is often the beginning of a paper trail that may end in an employee's termination.

In the best of circumstances the PIP exists to help an underperforming employee do their best. By laying out clear guidelines, employees get a clear sense of what is expected of them and gives them the room and direction necessary to improve in that direction.

A PIP may also be a precursor to termination, as it is often the first step required in establishing a paper trail in advance of a firing. In the worst situations, a PIP can be used to establish unreasonable or unattainable goals so that the subsequent termination of an employee can be justified as following internal process.

Unfortunately, no matter how the PIP will be used, the rhetoric is universally positive - every company that uses PIPs will formally describe them as an opportunity for the employee to improve, no matter what the reality is. Employees receiving PIPs and uncertain of their status are best served speaking openly with a manager they can trust. The manager is unlikely to directly contradict the official position of the company, but they may be willing to drop hints.

However, due to their intimidating presence, PIP's are often scrutinized by employees. The PIP method was targeted in the feature film Office Space. The comedy illustrates the measures that PIP firms implement, citing their incompetence in a hilarious fashion.