Under PIP, the company tells its employees which areas in their work need improvement. Which targets will have to be accomplished within time and on what basis will its performance be evaluated? Usually its time limit is 30, 60 or 90 days. However, this time limit may vary according to the appointment of the company and the status of the employees.

When an employee is placed on PIP, the company gives him a written plan. This usually includes where the performance of the employees is lacking, what targets have to be accomplished in the stipulated time, how much time will be given for improvement, what standards will be used to measure the performance and what resources will be made available by the company to help the employees.

Generally, PIP is implemented for those employees who are not able to consistently meet the set targets or whose work quality is low. PIP is used only in cases of poor performance of the employee. If an employee’s behavior involves indiscipline, fraud, harassment or a serious rule violation, companies usually take separate disciplinary action instead of PIP.

Before placing an employee on PIP, the manager also assesses his shortcomings. After this, clear and measurable targets are set for the employees. He can also be given additional training, refresher courses, necessary resources or guidance from the manager.

During this period, review meetings are also held from time to time, in which the performance of the employees is observed and suggestions are given if necessary. At the same time, there is a negative perception about PIP among many employees.

The main reason for this is that in many companies, if the employee is not able to improve his performance within the stipulated time, then further action or the process of termination can be initiated against him. For this reason many people consider PIP as a warning of losing their job.

However, it is not necessary that the purpose of every PIP is to remove employees. Many companies also implement it to give employees a chance to perform better.

On the other hand, if the employee shows improvement in his work within time, completes the targets and works on the suggestions of the manager, then he can successfully come out of PIP and continue his job.