Knowledge · Leadership & Organization

Managing Low Performers · PIP

Performance Improvement Plan

📂Leadership & Organization⏱2-min read📊Practical🔗8 related

What is low-performer management?

In one line
A Performance Improvement Plan (Performance Improvement Plan): a formal procedure that gives an employee who is falling short of expectations a chance to recover, with clear improvement goals, support, and a deadline.
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⚡ Summary in 3 lines
  • Four elements are essential: gap, goals, support, and deadline
  • A PIP without a root-cause diagnosis fails
  • Without records, the process can’t be defended

What changes most when you introduce a PIP is not the low performer but the manager's position. Judgments that used to pass as 'that person has always been like that' now have to be put in writing, and managers must prove for themselves what they expected and when and in what words they conveyed it. In fact, many PIP drafts are abandoned midway, because writing the expectations down reveals that they were never stated clearly even once. A PIP is a document that assesses the team member and, at the same time, assesses the management record.

In practice, underperformance is split along two axes: willingness and capability. If capability is lacking but willingness is there, training and mentoring are the remedy; if capability is there but willingness has dropped, reassignment or role redesign comes first. When both are low, a conversation about moving the person to a different role should come before a PIP. The period is usually set at 30, 60, or 90 days: 60 days is realistic where performance cycles are short, as in sales, and 90 days where deliverables take time, as in development or planning. A 30-day plan is easily read as a procedure whose outcome was decided in advance. Another point of confusion is the boundary between disciplinary action and a PIP. Attendance or rule violations such as unexcused absence or missed reporting belong to the disciplinary process, while a PIP addresses the quality of work output. Mix the two in one document and both lose their force.

The most common failure is the manager stepping back the moment the employee signs. If the support section says 'mentor assigned' but no mentor is actually in place, or a workload adjustment is promised while the existing work stays as is, then when a dispute arises, the only evidence the company can produce is a single record of missed targets. Setting a goal at double the previous quarter's results is the same problem. A goal with no chance of being met reads as building a case, not offering a chance to improve. And the damage is greater among those who remain than for the person targeted. Team members watch exactly how the PIP subject is treated, and the moment it becomes clear the procedure was a formality, they start calculating who is next.

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💡 In plain English
It is a rehabilitation treatment plan. Exercise without a diagnosis won't heal anyone, and notification without a plan is not treatment but a discharge notice.
Why it matters in practice
It is the conversation managers avoid most, yet neglecting it costs the most. When it is handled by emotion rather than procedure, trust across the whole team collapses.
Origin and sources

It became standard in U.S. performance management as a way to establish due process before termination. In Korea it was introduced alongside performance appraisal systems, but cases that strayed from its intended purpose have led to ongoing legal disputes.

An example

Let’s walk through a hypothetical case. Company A is a logistics IT firm with 310 employees. Assistant Manager Choi on Sales Team 2 had been stuck in the 50% range of target for three straight quarters, and the team leader asked HR for a PIP, saying 'I can't carry this any longer.' HR designed a 60-day program but decided to identify the cause first before starting.

  1. The first thing Manager Kim in HR did was reopen the appraisal records. Two of the three missed quarters overlapped with the period when Assistant Manager Choi’s sales territory was changed entirely.
  2. In the 1:1, the team leader opened by saying they wanted to check the facts before assuming a competence problem. Choi then shared that the handover list of clients in the new territory had still not arrived after four months.
  3. The 60-day goals were set on leading indicators, not revenue: 5 new meetings a week and a 30% quote conversion rate. In return, the same document stated that the company would first provide CRM data cleanup and 8 joint visits with a senior colleague.
  4. They checked in five times, for 30 minutes every other Friday, with the team leader keeping records. When meeting numbers fell short of target at the third check-in, the workload was readjusted by taking 12 accounts off Choi's plate.
  5. After 60 days, Assistant Manager Choi’s attainment rose from 52% to 89% and the PIP was closed. Company A then made a diagnostic conversation mandatory after two consecutive quarters below 70% attainment, cutting PIP launches from 6 a year to 2.
Related terms
Performance Management · Performance AppraisalThe full cycle of linking company and individual goals, checking progress, evaluating results, and tying them to rewards and development. Performance appraisal is one stage of this cycle.FeedbackSharing your observations and suggestions for improvement about someone's behavior and performance. A core leadership tool for driving growth.SBI FeedbackA conversation structure that builds feedback from just three elements, Situation, Behavior, and Impact, so you share observed facts rather than judgments about the person.1 on 1A regular one-on-one meeting between a leader and a team member. Beyond performance check-ins, it is a core leadership tool for supporting growth, relationships, and engagement.Disciplinary Action and Dismissal: Procedure and GroundsA process for imposing sanctions for rule violations or performance problems. It holds up only when both the grounds and the procedure are sound.Probation Period · Trial Employment ContractA set period after hiring to confirm job fit. Probation assumes the person will be hired permanently, while a trial employment contract leaves that decision open.Appraisal Results · Appeal ProcedureThe formal process of giving the employee their final appraisal rating and its basis in writing, letting them request a review within a set period, and replying with the outcome.Removing or Reassigning a Team LeaderAn HR action that removes a team leader or other role holder from their post or moves them to another. Grade and employment stay the same, but role and authority change, so the process must be justified and the person handled with care.
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Last updated 13 Sep 2026 · Reviewed by John Kim

FAQ

Running it that way defeats the purpose. Without a real opportunity to improve and real support, it also creates grounds for legal disputes.
It depends on the role, but typically 30–90 days. If it is shorter than the cycle in which results become visible, a fair evaluation is impossible.
Starting without diagnosing the cause. If the cause is an unclear role or missing information, prescribing only training will change nothing.
It means training managers in early-feedback skills for the stage before a PIP. Most low performance grows because nobody speaks up early.