A performance improvement plan is a dated record of what a rep was expected to do, how far short they were, what help their manager committed to, and whether that help happened. If it does not have dates and the rep's signature, it is a letter, not a plan.
Download the template
The template
Performance improvement plan
1. The target and the gap
2. What the manager commits to
3. What the rep commits to
4. Review log
5. Sign-off
How to run it
- Put the gap in money. "Below expectations" is an opinion. "£11,800 short of target over three months" is a fact the rep can see and a tribunal can weigh.
- The manager's commitments are the plan. A PIP that lists only what the rep must do is a warning. The support section is what makes it a fair process, and it is what most managers leave blank.
- Review on the dates, not when you get round to it. Missed review dates are the first thing a rep's representative will point to.
- Ask the rep whether the support happened. Record their answer, not yours. If they disagree, write that down too. A disputed entry is still evidence of a fair process. A one-sided one is not.
- Get it signed every time. The signature is the rep saying "I saw this". It does not mean they agree, and the comments box is where they say so.
Where a PIP fits a fair process in the UK
A PIP is usually the informal or first formal stage of a capability procedure. The Acas Code of Practice on disciplinary and grievance procedures expects that before a dismissal for poor performance the employee has been told the problem, given a reasonable chance to improve with support, and had the right to be accompanied at formal meetings. Where an employer unreasonably ignores the Code, a tribunal can raise compensation by up to 25%.
From 1 January 2027 the qualifying period for unfair dismissal falls to six months and the compensation cap is removed, so a properly run and properly recorded PIP matters for far more of your people than it does today. Our guide to the January 2027 changes covers what a manager needs on file. This is not legal advice. Check your procedure with Acas or a solicitor.
A note for US teams
Most US employment is at-will, so a PIP is not a legal requirement before termination. It still matters. Discrimination and retaliation claims turn on whether the stated reason for a termination is real and consistent, and a dated PIP with the rep's own acknowledgement of the gap and the support offered is the best evidence that it was. The template works unchanged. Swap the currency.
See your Monday team sheet
Twenty minutes with the team. Bring your team structure, he shows you what your managers' follow-through would look like.