What does 'performance improvement plan' (PIP) entail?

A performance improvement plan (PIP) is a structured approach designed to assist employees in addressing and overcoming specific performance deficiencies. The primary goal of a PIP is to provide employees with clear expectations, constructive feedback, and a defined timeline to improve their performance to meet organizational standards. This process typically involves setting measurable performance goals, outlining necessary actions for improvement, and scheduling regular review meetings to track progress.

The essence of a PIP lies in its focus on helping employees succeed rather than penalizing them. It aims to identify performance gaps and provide resources, support, and guidance necessary for improvement. In contrast, other options such as increasing employee salaries or rewarding top performers focus on compensation and recognition rather than performance enhancement, while seminars about motivation do not directly address individual performance issues in the structured way that a PIP does.