What should be in a PIP?

A PIP should include specific performance gaps, measurable improvement objectives, support or training to be provided, a clear timeline with checkpoints, and an explanation of consequences if objectives are not met. Precise examples and dates strengthen the record.

Is a PIP a prelude to termination?

A PIP is a documented opportunity to improve; it is not automatically a termination notice. However, failing to meet documented objectives can legitimately lead to further disciplinary action, including termination, if the process and documentation are consistent and nondiscriminatory.

Can an employee sign a PIP electronically?

Yes. Electronic signatures are legally enforceable in most U.S. contexts under the ESIGN Act and state UETA laws when intent, consent, attribution, and retention requirements are met. Use platforms that maintain an audit trail and secure storage.

How should PIP documents be stored?

Store signed PIPs in a secure HR system or document repository with access controls and audit logging. Retain records per company policy and applicable regulatory obligations; consider encryption at rest and controlled access.

How long must PIPs be retained?

Retention depends on legal risk and industry rules; retain personnel records for at least three years after termination and longer where regulations or potential litigation warrant. Healthcare employers should factor HIPAA retention guidance into policies.

How do we update or amend a PIP?

Amendments should be documented in writing, signed by the same parties who signed the original PIP, and dated. Maintain previous versions in the employee file to preserve the audit trail for any future inquiry.

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Performance Improvement Plan

Performance Improvement Plan

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What a Performance Improvement Plan Is and When it’s Used

A Performance Improvement Plan (Performance Improvement Plan) is a written document used by employers to address specific performance or conduct concerns with an employee, set measurable expectations, and define a timeframe for improvement. It typically outlines current performance gaps, clear objectives, support or training to be provided, interim checkpoints, and consequences if targets are not met. A PIP is intended to create a formal, documented improvement process that protects both parties by clarifying expectations, enabling consistent supervision, and establishing an evidentiary record should further personnel action become necessary.

Why a Structured PIP Matters

A well-crafted Performance Improvement Plan promotes fairness and consistency, reduces legal risk by documenting efforts to support the employee, and creates measurable criteria for performance decisions. It makes expectations explicit, guides coaching conversations, and provides a timeline to evaluate progress objectively.

Who Typically Prepares and Receives a PIP

The PIP is usually prepared by HR or a direct supervisor and delivered to the employee as part of formal performance management.

HR managers and business partners responsible for policy consistency and recordkeeping.
Line managers and supervisors who document performance issues and set improvement milestones.
Employees placed on a PIP to understand expectations and to consent to the improvement process.

Use the PIP as a collaborative tool: it documents employer support while giving the employee a clear path to meet expectations.

Core Components to Include in Every PIP

A professional Performance Improvement Plan contains clear sections so outcomes and responsibilities are unambiguous for all parties.

Performance Issues

Concise description of specific behaviors or metrics that fail to meet expectations, with dates or examples where possible to avoid vagueness and support objective evaluation.

Improvement Goals

Measurable objectives and success criteria tied to the role (for example target sales numbers, quality thresholds, or timely task completion) so progress can be monitored.

Support Offered

List of training, coaching, resources, or adjusted duties the employer will provide to assist the employee in meeting the stated objectives during the PIP period.

Timeline

Exact duration of the PIP and scheduled checkpoints (e.g., 30/60/90 days), including dates for interim reviews and the final assessment to ensure timeliness.

Consequences

Clear explanation of possible outcomes if objectives are not met, such as extension of the PIP, reassignment, or termination, avoiding ambiguous language.

Signatures

Signature lines for the employee, manager, and HR representative plus dates to show acknowledgement, receipt, and agreement on next steps.

Step-by-Step: Issuing and Managing a PIP

Follow a consistent sequence to document the issue, support the employee, and evaluate results objectively.

01

Document: Gather examples and evidence of performance shortfalls before drafting the PIP.
02

Draft the PIP: Write clear objectives, support actions, checkpoints, and consequences.
03

Meet and Deliver: Discuss the PIP in person when possible; provide a signed copy to the employee.
04

Monitor and Review: Hold scheduled check-ins and document progress at each checkpoint.

How to Configure an Online PIP Workflow

Set up an electronic workflow to route the PIP for review, signature, and secure storage while minimizing manual steps.

Field	Configuration
Notification	Email to employee, manager, and HR on creation
Review Sequence	Manager signs first, then HR acknowledgment
Reminder Frequency	Automated reminders every 7–14 days
Authentication Method	Email link or SMS code for signer verification

Where to Send or File a Completed PIP

Decide a consistent destination for signed PIPs so HR maintains a secure, auditable employee record.

Employee Copy: Provide the employee a signed PDF for their records.
HR File: Store the signed PIP in the employee’s confidential HR file.
Manager Records: Manager retains a working copy for coaching and checkpoints.
Central Archive: Long-term retention in a secure document repository.

Technical and Integration Considerations for ePIP Workflows

Choose a platform that supports secure signatures, audit trails, and integration with HR systems.

File Formats: PDF, DOCX supported
Integrations: Connect to HRIS and cloud storage
Authentication: Email, SMS, or SSO

Ensure the chosen solution preserves tamper-evident audit logs and meets any industry compliance needs; verify storage controls and access permissions with IT and legal.

Typical Timelines and Checkpoints for a PIP

Establishing clear dates reduces ambiguity and supports objective assessment during the improvement period.

Initial Counseling:

Informal discussion occurs before issuing a PIP

PIP Issue Date:

Date the PIP is presented and acknowledged by the employee

Interim Checkpoints:

Scheduled reviews at 30 and 60 days, or per company policy

Final Review Date:

Conclusion date for evaluating improvement success

Outcome Notification:

Date manager communicates decision following final review

Key Milestones from Issue to Outcome

A typical PIP moves through discrete stages; document each milestone to maintain a clear progress trail.

01

Issue PIP

Deliver and sign the PIP, set objectives and timeline.

02

First Checkpoint

Assess progress, document coaching and adjustments.

03

Second Checkpoint

Review metrics again; escalate if insufficient improvement.

04

Final Decision

Close the PIP with documented outcome and next steps.

Common Pitfalls to Avoid When Preparing a PIP

Vague goals and subjective language that leave room for differing interpretations at review time.
Insufficient documentation of prior coaching, which weakens the record if termination is later considered.
Failure to provide promised support or training, causing an unfair expectation of improvement.
Skipping interim checkpoints and not documenting progress, creating gaps in the evaluative timeline.

Risks and Potential Consequences of an Incorrect or Incomplete PIP

Wrongful Termination Risk: May increase legal exposure if process or documentation is deficient

Discrimination Claims: Inconsistent application could trigger discrimination or disparate treatment allegations

Breach of Privacy: Improper storage or sharing of PIP details can violate confidentiality

Union Contract Issues: May conflict with collective bargaining agreements if procedures are not followed

Regulatory Impact: Industry-specific rules can affect disciplinary rights and must be considered

Reputational Risk: Poorly handled PIPs can harm morale and employer brand

Required Data Elements for a Complete PIP Record

Employee Name: Full legal name

Employee ID: Internal identifier

Manager Name: Direct supervisor

Issue Date: MM/DD/YYYY

Review Dates: Scheduled checkpoints

Signatures: Employee, manager, HR

Practical Examples of How a PIP Is Used

Two concise scenarios illustrating common PIP use cases and how outcomes are documented in practice.

Performance Metrics Example

A sales representative missed quota for three consecutive quarters and received a PIP detailing specific monthly targets

Manager provided weekly coaching and CRM training
After 90 days the representative met targets; documentation shows coaching and achieved metrics, closing the PIP with a follow-up plan.

Conduct and Attendance Example

An operations associate had repeated unexcused absences affecting team output and was placed on a PIP describing acceptable attendance standards

Employee was offered schedule flexibility as support
At final review attendance improved, and the PIP was closed with a probationary monitoring period recorded.

eSignature Pricing Snapshot for PIP Workflows

Comparing basic vendor pricing and feature availability can help choose an eSignature solution for secure PIP execution and recordkeeping.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions about Performance Improvement Plans

Answers to common questions about preparing, signing, and retaining a Performance Improvement Plan in U.S. workplaces.

Need help? Contact support

What should be in a PIP?
A PIP should include specific performance gaps, measurable improvement objectives, support or training to be provided, a clear timeline with checkpoints, and an explanation of consequences if objectives are not met. Precise examples and dates strengthen the record.
Is a PIP a prelude to termination?
A PIP is a documented opportunity to improve; it is not automatically a termination notice. However, failing to meet documented objectives can legitimately lead to further disciplinary action, including termination, if the process and documentation are consistent and nondiscriminatory.
Can an employee sign a PIP electronically?
Yes. Electronic signatures are legally enforceable in most U.S. contexts under the ESIGN Act and state UETA laws when intent, consent, attribution, and retention requirements are met. Use platforms that maintain an audit trail and secure storage.
How should PIP documents be stored?
Store signed PIPs in a secure HR system or document repository with access controls and audit logging. Retain records per company policy and applicable regulatory obligations; consider encryption at rest and controlled access.
How long must PIPs be retained?
Retention depends on legal risk and industry rules; retain personnel records for at least three years after termination and longer where regulations or potential litigation warrant. Healthcare employers should factor HIPAA retention guidance into policies.
How do we update or amend a PIP?
Amendments should be documented in writing, signed by the same parties who signed the original PIP, and dated. Maintain previous versions in the employee file to preserve the audit trail for any future inquiry.

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