Performance improvement plan: a UK employer’s guide

No one sets out to fail at their job, but sometimes it can be a struggle for employees to keep up, through no fault of their own. If a worker is falling behind, a performance improvement plan can make a huge difference, both to the employee themselves and to the employer.

A performance improvement plan (PIP) is a structured, time-bound process that helps employers to address underperformance by setting clear expectations, measurable objectives, and regular support.

A performance improvement plan should be enacted before any formal capability dismissal is considered, as recommended by the Advisory, Conciliation and Arbitration Service (Acas). This is a more informal way of approaching an issue, instead of going straight in with dismissal – which is like using a sledge hammer to crack a nut. It’s also not fair on an employee to immediately start the dismissal procedure, when a little bit of help could solve the problem.

However, a performance improvement plan should never come as a surprise to an employee. Employers should attempt to resolve performance concerns initially through regular conversations, coaching, and feedback, before enacting a performance improvement plan if there is no sign of improvement.

A well-managed performance improvement plan can go a long way to improving consistency, demonstrating fairness, and creating a documented process that would stand up to scrutiny if performance doesn’t improve.

The challenge for UK HR leaders and managers is to balance accountability with support, while complying with the UK’s employment law, maintaining engagement across the wider team, and protecting the organisation from unnecessary legal risks.

A typical plan includes:

• Listing the specific areas where performance is falling short.
• Citing measurable performance objectives that are clear and achievable.
• Being clear on what support is available, such as leadership development programmes.
• Detailing review meetings and realistic deadlines.
• Laying down what the consequences are if the objectives aren’t reached.

The purpose of a performance improvement plan UK is just that – improvement, not punishment. A carefully crafted performance improvement plan gives employees a genuine opportunity to succeed, while providing employers with a fair and evidence-based process. 

A performance improvement plan should be introduced after informal performance management has failed to resolve ongoing capability concerns.

Examples of this are:

• A declining quality of work.
• Repeated failure to meet expected standards.
• Consistently missing agreed targets.
• An inability to perform key responsibilities despite having extra coaching.
• Ongoing concerns raised during performance reviews.

Employers should avoid using a performance improvement plan for isolated mistakes or situations that could be resolved through additional training or informal coaching.

Before beginning a formal process, managers need to ascertain:

• If expectations have been communicated clearly.
• If appropriate training is being provided.
• If the amount of work or shortage of resources have been problematic.
• If a health condition or disability affects performance.
• If the employee has already received informal feedback and support.

Getting honest answers to these questions will ensure that the process is fair, instead of just the documentation of what could be a pre-determined outcome.

A performance improvement plan should be implemented after more informal steps haven’t worked, but before initiating any dismissal procedure citing capability as the reason. So, an employee performance improvement plan is not a disciplinary action as that deals with misconduct.

This is important to know, as UK employment law distinguishes between capability, which is an employee’s ability to perform their role, and conduct, which is related to their behaviour at work.

But if the performance improvement plan process is part of a formal capability procedure, employers should follow a fair process that is consistent with the Acas Code of Practice, including informing employees of concerns and allowing them the right to be accompanied when attending formal meetings.

A simple way of distinguishing between capability and conduct is shown by the following table:

Capability	Conduct
Can’t meet required standards consistently.	Refuses to follow reasonable instructions.
Needs additional support or development.	Deliberately breaches company policies.
May require training or reasonable adjustments.	May require disciplinary sanctions.

UK employers should ensure that performance improvement plans are fair, solely based on evidence, and comply with employment law.

Key things to consider are:

• Follow a fair capability process

If the performance of an employee doesn’t improve, despite being given appropriate support, employers may decide to dismiss on capability grounds. Any dismissal should follow a fair procedure, including investigating the issues, giving the employee ample time to improve, and following the company’s capability process.

• Consider reasonable adjustments

If poor performance relates to an underlying disability, employers should consider if reasonable adjustments are required before progressing further. These can include specialist equipment, amended duties, increased flexible working arrangements, adjusted objectives, and additional training. If this is ignored, it can expose an employer to discrimination claims.

• Keep thorough documentation

Well-maintained records can become critical evidence if decisions are challenged, with good documentation demonstrating that concerns were genuine, the objectives were reasonable, support was provided, meetings took place, and all decisions were evidence-based.

• Apply policies consistently

Managers should apply performance standards consistently across comparable employees.

Inconsistent treatment increases legal and employee relations risks. 

A well thought-out performance improvement plan should include clear objectives, measurable outcomes, defined support, and scheduled review points, as specificity improves accountability on both sides.

A comprehensive PIP normally includes:

1. Performance concerns

Clearly explain what standards aren’t being met, give specific examples, say when issues occurred, and state what the impact is on the business. Unless you can support with objective evidence, avoid subjective statements such as “poor attitude” as they’re too vague.

2. SMART objectives

SMART relates to Specific, Measurable, Achievable, Relevant, and Time-bound, so objectives using this template will improve fairness and reduce ambiguity. It’s worth agreeing objectives during performance reviews so employees understand exactly what’s expected of them and how success will be measured.

For example, instead of an objective that reads, “Improve customer communication,” use “Achieve a customer satisfaction score of at least 85% over the next 6 weeks while responding to all enquiries within 1 working day.”

3. The support provided

Supporting the employee in need shows that improvement is being encouraged rather than being expected without any assistance. Employers should document all of the help offered, including mentorship programmes, additional training and coaching, access to learning resources, and adjusting workloads.

4. A review schedule

Most organisations schedule meetings every 1 to 4 weeks, depending on the role, with each review documenting evidence, progress, challenges, and agreed next steps. It could include a timeline of when the performance improvement plan will end as well.

5. Success criteria

Employees should know what successful completion looks like, as this does away with uncertainty and allows consistent decision-making at the end of the review period.

A performance improvement plan template provides managers with a consistent framework, while allowing flexibility for individual circumstances.

A simple template could include the following sections:

Section	Additional details
Employee name	Role and department.
Manager	Reviewer.
Date started	Review period.
Performance concerns	Evidence of underperformance.
Expected standard	Required level of performance.
Improvement objectives	SMART goals.
Support provided	Training, coaching, and resources.
Review dates	Meeting schedule.
Progress notes	Outcomes from each review.
Final outcome	Successful completion, extension, or capability decision.

Issue: Consistently achieving only 60% of quarterly sales target.

Objective: Increase monthly sales to at least 85% of target within 12 weeks.

Support: Weekly coaching, product refresher training, and joint client meetings.

Issue: High complaint volumes.

Objective: Reduce complaint rate by 35% within 8 weeks, while maintaining quality scores above 90%.

Support: Call coaching, shadowing more experienced advisers, and quality monitoring.

Issue: Repeated documentation errors.

Objective: Reduce processing errors below 2% over a 6-week period.

Support: Process training, revised quality checklist, and weekly feedback sessions.

A PIP is most effective when the relevant employees truly believe that they have a genuine chance at improving, and are willing to put in the effort to achieve this, coupled with support from their managers. That means employers should steer away from using a performance improvement plan as a tick-box exercise, a route to eventual dismissal, or making the employee redundant.

Frequent errors to avoid include:

• Unclear objectives.
• Unrealistic timelines.
• Insufficient support.
• Inconsistent review meetings.
• Poor record keeping.
• Changing the goal posts during the performance improvement plan process.
• Failing to take health or disability in consideration.
• Treating the process as a disciplinary sanction.

If a performance improvement plan doesn’t result in an improvement, a fair decision, based on evidence gathered throughout the process, should be made by employers.

Possible outcomes from here could be:

• Extending the plan if improvement is evident but incomplete.
• Redeploying if appropriate.
• Progressing to a formal capability hearing.
• Dismissing on capability grounds following a fair process.

If the employee involved is subsequently dismissed, the way an organisation handles this is crucially important. A respectful, well-supported employee exit protects the morale of remaining staff, reduces reputational risk, and reinforces the organisation’s commitment to treating people fairly. 

This can be achieved by providing outplacement support, which helps employees move into new roles more quickly. Careerminds boasts an 11.5 weeks average time to land a new role and a 95% placement rate. Outplacement also strengthens the employer brand while demonstrating that the organisation values people even when the employment relationship comes to an end. 

A performance improvement plan UK should last long enough to achieve meaningful improvement, while remaining proportionate to the role and the extent of the performance issues. A good length is between 30 and 90 days. Longer review periods can be required for complex professional roles, while operational roles can deal with measurable daily outputs, with the chosen timeframe allowing enough opportunity to see genuine improvement.

Managers need to work alongside HR when preparing and reviewing a PIP to ensure that objectives are consistent, documentation is robust, and the process aligns with company policy and UK employment law.

No, there is no legal requirement to use a performance improvement plan. However, it’s seen as good practice to follow a structured capability process that provides support, reasonable time to improve, and fair treatment, while demonstrating procedural fairness if dismissal is later considered. 

Ultimately, the success of a performance improvement plan isn’t just measured by whether an employee improves and is retained, but whether the process is fair, consistent, and means that everyone involved comes out of it with dignity and confidence. When a PIP doesn’t resolve underperformance, a fair, supported exit, with outplacement as the bridge, will protect the employer brand.

No one sets out to fail at their job, but sometimes it can be a struggle for employees to keep up, through no fault of their own. If a worker is falling behind, a performance improvement plan can make a huge difference, both to the employee themselves and to the employer.

A performance improvement plan (PIP) is a structured, time-bound process that helps employers to address underperformance by setting clear expectations, measurable objectives, and regular support.

A performance improvement plan should be enacted before any formal capability dismissal is considered, as recommended by the Advisory, Conciliation and Arbitration Service (Acas). This is a more informal way of approaching an issue, instead of going straight in with dismissal – which is like using a sledge hammer to crack a nut. It’s also not fair on an employee to immediately start the dismissal procedure, when a little bit of help could solve the problem.

However, a performance improvement plan should never come as a surprise to an employee. Employers should attempt to resolve performance concerns initially through regular conversations, coaching, and feedback, before enacting a performance improvement plan if there is no sign of improvement.

A well-managed performance improvement plan can go a long way to improving consistency, demonstrating fairness, and creating a documented process that would stand up to scrutiny if performance doesn’t improve.

The challenge for UK HR leaders and managers is to balance accountability with support, while complying with the UK’s employment law, maintaining engagement across the wider team, and protecting the organisation from unnecessary legal risks.

A typical plan includes:

• Listing the specific areas where performance is falling short.
• Citing measurable performance objectives that are clear and achievable.
• Being clear on what support is available, such as leadership development programmes.
• Detailing review meetings and realistic deadlines.
• Laying down what the consequences are if the objectives aren’t reached.

The purpose of a performance improvement plan UK is just that – improvement, not punishment. A carefully crafted performance improvement plan gives employees a genuine opportunity to succeed, while providing employers with a fair and evidence-based process. 

A performance improvement plan should be introduced after informal performance management has failed to resolve ongoing capability concerns.

Examples of this are:

• A declining quality of work.
• Repeated failure to meet expected standards.
• Consistently missing agreed targets.
• An inability to perform key responsibilities despite having extra coaching.
• Ongoing concerns raised during performance reviews.

Employers should avoid using a performance improvement plan for isolated mistakes or situations that could be resolved through additional training or informal coaching.

Before beginning a formal process, managers need to ascertain:

• If expectations have been communicated clearly.
• If appropriate training is being provided.
• If the amount of work or shortage of resources have been problematic.
• If a health condition or disability affects performance.
• If the employee has already received informal feedback and support.

Getting honest answers to these questions will ensure that the process is fair, instead of just the documentation of what could be a pre-determined outcome.

A performance improvement plan should be implemented after more informal steps haven’t worked, but before initiating any dismissal procedure citing capability as the reason. So, an employee performance improvement plan is not a disciplinary action as that deals with misconduct.

This is important to know, as UK employment law distinguishes between capability, which is an employee’s ability to perform their role, and conduct, which is related to their behaviour at work.

But if the performance improvement plan process is part of a formal capability procedure, employers should follow a fair process that is consistent with the Acas Code of Practice, including informing employees of concerns and allowing them the right to be accompanied when attending formal meetings.

A simple way of distinguishing between capability and conduct is shown by the following table:

Capability	Conduct
Can’t meet required standards consistently.	Refuses to follow reasonable instructions.
Needs additional support or development.	Deliberately breaches company policies.
May require training or reasonable adjustments.	May require disciplinary sanctions.

UK employers should ensure that performance improvement plans are fair, solely based on evidence, and comply with employment law.

Key things to consider are:

• Follow a fair capability process

If the performance of an employee doesn’t improve, despite being given appropriate support, employers may decide to dismiss on capability grounds. Any dismissal should follow a fair procedure, including investigating the issues, giving the employee ample time to improve, and following the company’s capability process.

• Consider reasonable adjustments

If poor performance relates to an underlying disability, employers should consider if reasonable adjustments are required before progressing further. These can include specialist equipment, amended duties, increased flexible working arrangements, adjusted objectives, and additional training. If this is ignored, it can expose an employer to discrimination claims.

• Keep thorough documentation

Well-maintained records can become critical evidence if decisions are challenged, with good documentation demonstrating that concerns were genuine, the objectives were reasonable, support was provided, meetings took place, and all decisions were evidence-based.

• Apply policies consistently

Managers should apply performance standards consistently across comparable employees.

Inconsistent treatment increases legal and employee relations risks. 

A well thought-out performance improvement plan should include clear objectives, measurable outcomes, defined support, and scheduled review points, as specificity improves accountability on both sides.

A comprehensive PIP normally includes:

1. Performance concerns

Clearly explain what standards aren’t being met, give specific examples, say when issues occurred, and state what the impact is on the business. Unless you can support with objective evidence, avoid subjective statements such as “poor attitude” as they’re too vague.

2. SMART objectives

SMART relates to Specific, Measurable, Achievable, Relevant, and Time-bound, so objectives using this template will improve fairness and reduce ambiguity. It’s worth agreeing objectives during performance reviews so employees understand exactly what’s expected of them and how success will be measured.

For example, instead of an objective that reads, “Improve customer communication,” use “Achieve a customer satisfaction score of at least 85% over the next 6 weeks while responding to all enquiries within 1 working day.”

3. The support provided

Supporting the employee in need shows that improvement is being encouraged rather than being expected without any assistance. Employers should document all of the help offered, including mentorship programmes, additional training and coaching, access to learning resources, and adjusting workloads.

4. A review schedule

Most organisations schedule meetings every 1 to 4 weeks, depending on the role, with each review documenting evidence, progress, challenges, and agreed next steps. It could include a timeline of when the performance improvement plan will end as well.

5. Success criteria

Employees should know what successful completion looks like, as this does away with uncertainty and allows consistent decision-making at the end of the review period.

A performance improvement plan template provides managers with a consistent framework, while allowing flexibility for individual circumstances.

A simple template could include the following sections:

Section	Additional details
Employee name	Role and department.
Manager	Reviewer.
Date started	Review period.
Performance concerns	Evidence of underperformance.
Expected standard	Required level of performance.
Improvement objectives	SMART goals.
Support provided	Training, coaching, and resources.
Review dates	Meeting schedule.
Progress notes	Outcomes from each review.
Final outcome	Successful completion, extension, or capability decision.

Issue: Consistently achieving only 60% of quarterly sales target.

Objective: Increase monthly sales to at least 85% of target within 12 weeks.

Support: Weekly coaching, product refresher training, and joint client meetings.

Issue: High complaint volumes.

Objective: Reduce complaint rate by 35% within 8 weeks, while maintaining quality scores above 90%.

Support: Call coaching, shadowing more experienced advisers, and quality monitoring.

Issue: Repeated documentation errors.

Objective: Reduce processing errors below 2% over a 6-week period.

Support: Process training, revised quality checklist, and weekly feedback sessions.

A PIP is most effective when the relevant employees truly believe that they have a genuine chance at improving, and are willing to put in the effort to achieve this, coupled with support from their managers. That means employers should steer away from using a performance improvement plan as a tick-box exercise, a route to eventual dismissal, or making the employee redundant.

Frequent errors to avoid include:

• Unclear objectives.
• Unrealistic timelines.
• Insufficient support.
• Inconsistent review meetings.
• Poor record keeping.
• Changing the goal posts during the performance improvement plan process.
• Failing to take health or disability in consideration.
• Treating the process as a disciplinary sanction.

If a performance improvement plan doesn’t result in an improvement, a fair decision, based on evidence gathered throughout the process, should be made by employers.

Possible outcomes from here could be:

• Extending the plan if improvement is evident but incomplete.
• Redeploying if appropriate.
• Progressing to a formal capability hearing.
• Dismissing on capability grounds following a fair process.

If the employee involved is subsequently dismissed, the way an organisation handles this is crucially important. A respectful, well-supported employee exit protects the morale of remaining staff, reduces reputational risk, and reinforces the organisation’s commitment to treating people fairly. 

This can be achieved by providing outplacement support, which helps employees move into new roles more quickly. Careerminds boasts an 11.5 weeks average time to land a new role and a 95% placement rate. Outplacement also strengthens the employer brand while demonstrating that the organisation values people even when the employment relationship comes to an end. 

A performance improvement plan UK should last long enough to achieve meaningful improvement, while remaining proportionate to the role and the extent of the performance issues. A good length is between 30 and 90 days. Longer review periods can be required for complex professional roles, while operational roles can deal with measurable daily outputs, with the chosen timeframe allowing enough opportunity to see genuine improvement.

Managers need to work alongside HR when preparing and reviewing a PIP to ensure that objectives are consistent, documentation is robust, and the process aligns with company policy and UK employment law.

No, there is no legal requirement to use a performance improvement plan. However, it’s seen as good practice to follow a structured capability process that provides support, reasonable time to improve, and fair treatment, while demonstrating procedural fairness if dismissal is later considered. 

Ultimately, the success of a performance improvement plan isn’t just measured by whether an employee improves and is retained, but whether the process is fair, consistent, and means that everyone involved comes out of it with dignity and confidence. When a PIP doesn’t resolve underperformance, a fair, supported exit, with outplacement as the bridge, will protect the employer brand.

If your organisation is looking for fair and supported exits for staff, Careerminds has an array of services at your disposal. Contact us to find out more.