Performance Improvement Plans (PIPs) have long been used as a tool to help employees address performance issues. However, in many cases, PIPs are fundamentally flawed and often misused. They are intended to address skills-based gaps but are frequently deployed in situations where the root cause isn’t a lack of ability—it's behavioural. 

If an employee has been with your company for a significant amount of time and has consistently demonstrated the necessary skills for their role, a sudden drop in performance is likely not about their capabilities. It’s about something deeper—perhaps motivation, engagement, or personal challenges. In such cases, using a PIP not only fails to address the real issue but can also alienate and demotivate the employee further.

Why PIPs Miss the Mark

PIPs are skills-based, but not all problems are: PIPs are designed to close gaps in knowledge or skills, not to fix behavioural issues like attitude, motivation, or team dynamics. When used for behavioural issues, they miss the point entirely.

Long-serving employees know how to do their jobs: If an employee has been successfully doing their job for months or years, a PIP that focuses on re-teaching the basics is redundant. It assumes the issue is a lack of skill, ignoring potential behavioral or environmental factors that are causing the decline.

The stigma of a PIP creates disengagement: PIPs can feel punitive. Employees often view them as the first step towards termination, leading to anxiety and disengagement. This can exacerbate any underlying issues rather than resolving them.

When a PIP Isn’t the Answer

Addressing Behavioural Issues: If the decline in performance is due to behavioural changes, such as poor attitude or lack of engagement, a PIP is not the solution. Instead, direct conversations, coaching, or even mental health support might be needed. The goal should be to understand *why* their behaviour has changed and address the root cause.

Recognising External Factors: Sometimes an employee’s personal life may be affecting their work. A PIP won't fix this. Empathy, support, and flexibility can help the employee get back on track far more effectively than formal performance documentation.

Create a Supportive Culture: Instead of jumping straight to a PIP, consider how your workplace culture supports (or hinders) employee well-being and performance. A sudden drop in performance might be a sign of deeper issues within the team or environment.

Tips for Real Improvement

Focus on coaching and development: Engage the employee in honest conversations to understand what’s really going on. Is it burnout, personal issues, or a lack of motivation? Tailored coaching can reignite performance and motivation far more effectively than a generic PIP.

Provide regular feedback: Consistent feedback and support can often prevent the need for formal interventions like PIPs. By addressing concerns early and openly, employees have the chance to correct course before formal measures are needed.

Promote a culture of psychological safety: Employees need to feel safe to discuss challenges and struggles without fear of punishment. Create an environment where they can share their difficulties and seek support, rather than masking problems until they result in a formal PIP.

PIPs have their place—but only when performance issues are truly skills-based. When behavioral or personal challenges are at the root of a performance decline, a PIP is not only ineffective but can do more harm than good. It’s time to move beyond outdated methods and focus on real solutions—like coaching, empathy, and a supportive workplace culture—that address the heart of the issue. 

So, let’s make PIPs go the way of the dodo, and instead, focus on providing employees with the support and guidance they really need to succeed.