Performance improvement plan (PIP) template UK

What a PIP is and when to use one

A PIP is a simple written plan that sets out the performance concerns, the standards expected, the support being offered, and the review dates. It is usually used when an employee is not meeting the required level in their role, but the issue is about performance rather than misconduct.

It should be used as part of a fair management process, not as a box-ticking exercise. If someone is repeatedly missing targets, struggling with quality, or not meeting core duties, a PIP can create structure and clarity. If the issue is conduct, attendance or behaviour, a different process may be more appropriate. If you are unsure where the boundary sits, it can help to read a practical guide such as disciplinary steps for small businesses alongside your performance process.

For employers dealing with a mix of absence, capability and performance concerns, it is worth separating each issue properly. That avoids confusion and helps you keep the process fair.

What should be included in a UK PIP template

A good UK PIP template should be simple enough to use, but detailed enough to keep everyone aligned. The aim is to explain what is not working, what success looks like, what support will be provided, and when progress will be reviewed.

The document should be written in plain English and reflect the employee’s role, grade and responsibilities. It should be tailored to the situation rather than copied and pasted from a generic form. This matters because the clearer the expectations, the easier it is to review progress consistently and avoid misunderstandings.

• Employee name, job title and manager name
• A summary of the performance concerns with recent examples
• The specific goals or standards that need to be met
• What support, training or supervision will be provided
• Review dates and the overall timescale
• What happens if performance improves, stays the same, or falls further

Performance concerns, goals, support, timescales and review dates

The most useful PIP documents are very clear on the exact performance concerns. For example, instead of saying someone has a 'poor attitude', spell out the behaviours or results you are seeing, such as missing deadlines, repeated errors, or not following agreed processes. Specific examples make the conversation more objective.

Goals should be realistic and measurable. In a small business, that may mean improving response times, reducing errors, completing tasks to the right standard, or meeting agreed sales or service levels. Build in support too, such as coaching, check-ins, training, shadowing, or clearer priorities. If you need more help with day-to-day people issues, our employee relations support service is designed for employers who need a steady hand with difficult conversations.

Review dates matter because they keep the process moving and show that you are assessing progress properly. A PIP with no review point can quickly lose focus and become unfair to both sides.

How to use a PIP fairly and confidently

Start with a conversation, not a form. Explain the concerns, listen to the employee’s view, and make sure they understand the standards expected. A PIP works best when it is part of a managed discussion, not a sudden email with a document attached.

Once the plan is agreed, keep notes of meetings, support offered, deadlines and any changes made. That record helps you stay consistent and makes it easier to show that the process was handled properly. It also helps if the employee later raises a grievance or disputes the outcome. If you want broader support across policies, meetings and documentation, explore our outsourced HR support for small businesses.

Be steady and supportive throughout the process. Small businesses often avoid direct conversations because they feel uncomfortable, but unclear feedback usually makes performance issues worse. A calm, structured approach is usually better for everyone involved, especially when you are trying to handle difficult employee behaviour professionally.

A simple UK PIP template example

Below is a basic structure you can adapt for your own business. It is not a one-size-fits-all legal document, but it gives you a sensible starting point for handling underperformance in a practical way.

You can use the format below in a meeting and then follow up in writing. That way the employee hears the message clearly and also has a record of the expectations and dates.

• Employee: [name]
• Role: [job title]
• Manager: [name]
• Date plan started: [date]
• Performance concern: [brief summary with examples]
• Expected standard: [clear description of what good looks like]
• Support provided: [training, coaching, supervision, resources]
• Review date(s): [date 1], [date 2], [final review]
• Outcome if improved: [return to normal management / end of plan]
• Outcome if not improved: [further formal action may follow]

Common mistakes employers make with PIPs

One common mistake is using a PIP when the real issue has not been diagnosed properly. If performance problems are actually caused by workload, unclear priorities, absence, poor onboarding or a management issue, the plan will not solve the real problem. In those cases, a broader review may be needed, similar to the approach used in our guide to managing employee absence fairly in the UK.

Another mistake is setting goals that are too ambitious, too vague or impossible to measure. A PIP should stretch the employee, but it should not be unrealistic. Employers also get into trouble when they fail to keep notes, skip review meetings, or change the target partway through without explanation.

Finally, do not use a PIP as a disguised disciplinary step. If you already think dismissal may be likely, the process must still be handled carefully and fairly. A rushed or inconsistent approach can create avoidable risk and usually damages trust inside the team.

What happens if performance does not improve?

If performance does not improve after a fair PIP process, you may need to move to the next stage of your procedure. That could mean a further review, a more formal capability process, or in some cases dismissal for capability. The right route depends on the facts, the evidence and your internal policy.

Before any final decision, make sure you have followed a fair process, given reasonable support, and allowed the employee a chance to respond. In a small business, it is easy to move too quickly because the pressure is felt immediately, but acting too fast can create more problems later.

If the case is sensitive, senior, or not straightforward, get advice before you decide what happens next. Good documentation and consistent steps matter far more than making the process look formal.

When to get HR support with performance management

If you do not have an internal HR team, performance issues can become time-consuming very quickly. You may need help drafting a fair PIP, planning the conversation, documenting the process, or deciding what to do if things do not improve. That is especially true when the employee is senior, protected by a sensitive issue, or already raising concerns about workload or management style.

Flora HR supports small businesses with practical, UK-focused HR advice that makes employee relations easier to manage. If you need help with underperformance, documentation or manager support, speak to our team through HR consultancy or get in touch for wider support with people issues.

A good PIP is not just a form. It is part of a fair, structured and well-communicated management process — and that is often easier to run with experienced HR support behind you.