Performance Improvement Plan (PIP)

Standard Operating Procedure for Employee Performance Improvement, Monitoring and Corrective Support

1. Definition of PIP

Performance Improvement Plan (PIP) is a structured HR process used to identify, communicate, monitor and improve employee performance when the employee’s output, discipline, productivity, quality of work, attitude, attendance or target achievement is below the expected company standard.

PIP is not a punishment. It is a corrective and developmental opportunity given to the employee to improve within a defined time period with proper guidance, training and review.

2. Objectives of PIP

  1. To identify performance gaps clearly.
  2. To communicate expectations in writing.
  3. To provide training, guidance and support.
  4. To monitor improvement with measurable targets.
  5. To improve productivity, discipline and accountability.
  6. To support employee development through counselling and coaching.
  7. To enable fair HR decisions based on documented performance records.

3. When PIP Can Be Used

  • Poor work output or low productivity.
  • Repeated mistakes in assigned work.
  • Failure to achieve KPI targets.
  • Poor attendance or punctuality.
  • Failure to follow company SOP or reporting system.
  • Poor reporting discipline.
  • Quality complaints or repeated customer complaints.
  • Non-cooperation with team members or supervisors.
  • Negative work attitude affecting departmental discipline.
  • Failure to complete assigned duties within the agreed timeline.

4. SOP Procedure for PIP

1

Identify the Issue

The reporting manager shall record the specific performance issue with dates, examples and supporting evidence.

2

Initial Discussion

The manager shall meet the employee and explain the performance gap, expected standard and impact on the department.

3

Prepare PIP Document

The document shall include employee details, performance gap, measurable targets, review dates and support provided.

4

Fix PIP Duration

Minor issue: 15 days. Moderate issue: 30 days. Serious performance issue: 45 to 60 days.

5

Define Targets

Targets shall be measurable, practical, time-bound and directly connected with the employee’s role.

6

Provide Support

The company shall provide required training, SOP explanation, supervisor guidance and work clarification.

7

Review Progress

The manager shall conduct weekly reviews and record whether the employee has improved, partially improved or not improved.

8

Final Evaluation

HR and the reporting manager shall evaluate the final performance and decide the suitable outcome.

5. Example Performance Targets

Performance AreaExpected Target
AttendanceMinimum 95% attendance during the PIP period.
PunctualityReporting to duty on time without repeated late attendance.
Daily ReportingDaily work report submission before the prescribed deadline.
Quality of WorkError level to be reduced below the accepted departmental limit.
Task Completion100% completion of assigned tasks within agreed timeline.
Customer ComplaintNo repeated complaint arising from the same work error.
Team CooperationPositive cooperation with team members, supervisors and management.

6. Support Provided by Company

  • Technical training or functional training.
  • On-the-job coaching by supervisor or senior staff.
  • Clear explanation of SOP and work expectations.
  • Additional tools, resources or work clarification wherever required.
  • Weekly counselling and feedback.
  • Monitoring and guidance during the PIP period.
  • Opportunity to explain practical difficulties faced by the employee.

7. Final Evaluation Outcome

  1. Successfully Completed: Employee continues in the same role with normal monitoring.
  2. PIP Extended: Additional time is granted if partial improvement is observed.
  3. Role Reassignment: Employee may be shifted to a more suitable role.
  4. Written Warning: Issued when improvement is poor or inconsistent.
  5. Further HR Action: Initiated if there is no satisfactory improvement.
  6. Separation Process: Considered only after fair opportunity, review and documentation.

8. PIP Form Template

Employee Name
Employee ID
Department
Designation
Reporting Manager
Date of Issue
PIP Start Date
PIP End Date

Performance Issue / Gap:

Expected Standard:

Improvement Targets:

  1. ____________________________________________________________
  2. ____________________________________________________________
  3. ____________________________________________________________

Support / Training Provided by Company:

Review Schedule: Weekly / Fortnightly

Review Remarks:

Final Decision:

Employee Signature
Reporting Manager
HR Department