The Real Advantages of Using a PIP

When your business has a solid foundation of honest feedback and psychological safety, a PIP can offer some real benefits, for both the employee and the organization:

1. Clarity and Alignment

A good PIP outlines very clearly:

- What’s not working

- What “better” looks like

- By when improvement is expected

This eliminates ambiguity and ensures both parties are on the same page.

2. Structure with Support

Rather than throwing someone into the deep end with vague instructions to “just do better,” a PIP lays out concrete goals and resources. It provides a framework.

Think of it like a GPS recalculating a route. You're not abandoning the trip, rather you’re finding a better path forward.

3. Opportunity for Engagement and Growth

When managers are willing to partner—not police—the PIP process can deepen trust. Many employees want to improve. They just need clear expectations, frequent check-ins, and a sense that their leader is invested in their success.

I've seen PIPs result in promotions. Seriously.

4. Retention (Yes, Really)

Handled thoughtfully, a PIP can actually **prevent turnover -** and not just the "bad kind." Employees who feel fairly treated and supported through a challenging time are more likely to stay with the company.

Now, let’s talk about what often goes wrong. Because truth be told, PIPs don’t always have the best reputation.

Here’s what undermines them:

1. Surprise! You’re on a PIP.

If the first time an employee hears about a performance issue is when they’re handed a PIP, the process is already broken.

Feedback shouldn’t start with a formal document. It should start long before—with real-time coaching, support, and two-way communication.

2. “HR Makes Us Do This” Energy

If the manager is clearly disengaged, going through the motions, or treating the PIP as a box to check before termination… the employee will feel that. It becomes a formality instead of a chance to improve.

3. Unrealistic or Vague Expectations

Nothing sabotages a PIP faster than unclear goals:

- “Improve your attitude”

- “Be more of a team player”

- “Take more initiative”

What does that even mean?

A strong PIP is specific, measurable, and actionable. Without that, you’re setting the employee up to fail—and setting your company up for a legal headache.

4. No Follow-Through

A PIP isn’t a one-and-done form. It requires regular check-ins, coaching, and documentation. If that doesn't happen, you’ve wasted everyone’s time—and possibly opened the door to claims of unfair treatment or constructive dismissal.

Let’s not sugarcoat this: a PIP gone wrong can expose your business to real legal risk.

If the plan appears retaliatory, discriminatory, or rooted in vague performance claims without documentation, you may be laying the groundwork for:

- Wrongful termination claims

- Retaliation complaints

- Constructive dismissal claims

And while you might think, “That won’t happen to us—we’re a small team,” the truth is that small businesses are especially vulnerable, because they often don’t have proper documentation or processes in place.

Which brings me to this...

If you’re writing your first PIP—or want to revisit your current approach—here’s where to start:

1. Understand the Root Cause

Performance issues aren’t always skill-related. Sometimes they’re about:

- Misaligned expectations

- Lack of training

- Personal challenges

- Poor communication

- Burnout

Before jumping into a formal plan, take time to **talk with the employee**. Listen. Ask questions. Understand the context.

2. Don’t Go It Alone

This is where HR should be deeply involved. Whether you’re a small business owner or a department head, don’t build your PIP in a vacuum. Collaborate with HR or a trusted consultant to:

- Identify the core issue

- Develop clear goals

- Ensure the language used is objective and defensible

3. Make It Collaborative

A PIP shouldn’t be a monologue. Invite the employee into the process.

Ask:

- What support do you need?

- What’s unclear about your current responsibilities?

- What’s been getting in your way?

That doesn’t mean lowering standards—but it does mean listening, adjusting, and being human.

4. Equip the Manager

Don’t assume your managers know how to deliver difficult feedback. Many don’t.

Train them to:

- Focus on behaviors, not personalities

- Avoid judgmental language

- Stay open and supportive

- Document everything

If your culture hasn’t normalized regular feedback, HR might need to sit in on the meeting or provide extra coaching.

5. Stay Involved

Don’t “set it and forget it.”

The PIP should include:

- A written timeline

- Check-in dates (weekly or biweekly)

- Manager and employee responsibilities

- Clear criteria for success

HR should monitor progress and be available to coach both parties as the plan unfolds.

One of my small business clients recently came to me about an underperforming employee in a customer-facing role. The employee was missing deadlines, making errors, and showing signs of disengagement.

The manager was ready to let them go.

Instead, we worked together to:

- Clarify expectations

- Identify missing training

- Build a 30-day improvement plan with weekly check-ins

- Set up peer mentorship support

The result?

Not only did the employee meet the goals—they started suggesting improvements to the workflow that reduced customer complaints.

Sometimes, people just need a chance to reset—with support.

If you want to know what your culture is really like, look at how performance issues are handled.

Are managers supported in having hard conversations?

Do employees trust that feedback is meant to help, not hurt?

Do you treat performance improvement as something you do with someone—not to them?

A PIP is just a tool. Whether it builds trust or destroys it depends on the culture you’ve built around it.

At On Demand HR Solutions, I help small businesses create people-centered HR practices that work in real life—not just on paper.

If your team is struggling with performance issues—or you want to avoid ever needing a PIP in the first place—I’d love to talk.

Let’s build the kind of workplace where feedback is welcome, and people can actually grow.

👉 Schedule a free discovery call

And if you haven’t read it yet, check out the full article I contributed to on Built In:

📖 Performance Improvement Plans: What They Are and How to Create One That Works.