What Is a Performance Improvement Process (PIP)?
A Performance Improvement Process (PIP) is a formal process used to address ongoing employee performance concerns.
A PIP helps set clear expectations, define measurable goals, and provide employees with the support needed to improve their performance within a specific timeframe.
The purpose of a PIP is to give employees a fair opportunity to improve before further action is considered. When managed correctly, a PIP supports accountability, productivity, and compliance with local employment laws.
Important Information Before Starting a PIP
A PIP must not be started without first contacting Remote People.
As the legal Employer of Record (EOR), Remote People or our local partner is responsible for formally managing and issuing PIPs to employees in compliance with local labor laws.
If you believe a PIP may be necessary, please contact before discussing or issuing any formal performance documentation to the employee.
When Should a PIP Be Used?
A PIP may be appropriate in situations such as:
Consistent Underperformance
When an employee repeatedly fails to meet expected performance standards despite informal feedback or coaching.
Lack of Improvement
When previous performance discussions or corrective actions have not resulted in improvement.
Skill or Knowledge Gaps
When additional training, guidance, or support may help the employee improve performance.
Behavioral Concerns
When workplace behavior negatively impacts productivity, collaboration, or team dynamics and previous corrective efforts have not been successful.
How the PIP Process Works
Remote People will guide you through each step of the process to help ensure compliance with local labor laws.
Step 1: Document the Performance Concerns
Provide clear and factual examples of the performance or behavioral issues.
This may include:
Missed targets or deadlines
Quality concerns
Behavioral issues
Previous feedback or coaching discussions
Step 2: Define Clear Objectives
Specific improvement goals and expectations will be established.
These goals should be:
Clear
Measurable
Realistic
Time bound
Step 3: Provide Support
The PIP may include support measures such as:
Training
Coaching
Mentorship
Regular manager guidance
Step 4: Monitor Progress
Regular check ins will take place throughout the PIP period to review progress, discuss challenges, and provide feedback.
Step 5: Communicate Possible Outcomes
The employee will be informed of the potential consequences if the required improvements are not achieved.
Step 6: Final Review
At the end of the PIP period, the employee’s progress will be reviewed to determine the appropriate next steps.
Possible outcomes may include:
Successful completion of the PIP
Extension of the PIP period
Further disciplinary action where legally permitted
Typical PIP Timeline
A PIP generally lasts between 30 and 90 days, depending on the nature of the performance concerns and the employee’s role.
Preparation Phase
Usually 1 to 2 weeks to gather documentation and prepare the PIP.
Active PIP Period
Typically 30 to 90 days with regular progress reviews.
30 days may be appropriate for less complex issues
60 to 90 days may be required for more significant performance or behavioral concerns
Important Legal Disclaimer
In some countries, a PIP may not be considered a legally valid basis for termination.
Employment laws vary significantly by country, and using a PIP incorrectly may create legal or compliance risks.
Remote People will advise you on the appropriate process and legal requirements based on the employee’s country of employment.
If you have questions about starting a PIP or managing employee performance concerns, please contact support@remotepeople.com