In Part One of this series, we explored the origins of Performance Improvement Plans (PIPs) and why they’re often misused. In this second installment, we dive deeper into employer intent, execution pitfalls, and how to craft PIPs that actually work.
Intention is Everything
At the heart of any PIP lies the employer’s intent. As Richard explains:
“Whether a PIP succeeds depends on whether the employer is truly invested in helping an employee improve—or just building a file to terminate.”
He offers the example of an underperforming salesperson struggling to close deals. A well-intentioned PIP might set hard targets, outline a plan for coaching and support, and clearly state the consequences of continued underperformance. “It may be a Hail Mary pass,” he says, “but it’s issued with good intentions.”
The best employers make the process easy for managers: setting clear goals, holding regular one-on-ones, and documenting progress. If the process is too burdensome, Richard warns, “it won’t get done.”
The Trouble with Vague Goals
Mari highlights a major flaw in many modern PIPs: the lack of concrete metrics.
“I see PIPs with goals like ‘be a thought leader’ or ‘demonstrate personal accountability,’” she notes. “These are vague, subjective, and hard to measure. Coupling them with specific examples could, in theory, be helpful—but often that step is skipped.”
Without clarity, both managers and employees struggle to align expectations, turning the PIP into a source of frustration rather than a path to improvement.
No Surprises Allowed
Both experts stress that a PIP should never catch an employee off guard.
“An employee surprised by a PIP is a sign their manager failed them,” Richard says. “Better to be honest and cut ties than be two-faced.”
Mari agrees, noting that surprise PIPs create immense stress, often harming the employee’s performance further. Misused PIPs can erode trust across teams as colleagues witness seemingly arbitrary disciplinary actions. “The damage to an employee’s self-worth and confidence can take months or years to recover,” she adds.
The Bottom Line
PIPs are neither inherently fair nor inherently flawed—they’re tools. Their effectiveness depends entirely on clarity, honesty, and fairness.
When handled transparently and constructively, a PIP can help employees course-correct and rebuild trust. But when used as a covert path to termination, they often backfire: eroding morale, triggering costly litigation, and damaging managerial credibility.
“PIPs may be the beginning of the end,” Richard concludes, “but good management dictates that they be used honestly as part of managing a workforce from hire to fire.”
For employers, that means treating PIPs as a last, genuine effort to guide struggling employees—with documented, realistic goals and meaningful support. Surprises and ambiguity have no place in the process.
Synergy HR Key Takeaways for Employers
- Be clear and specific. Vague goals create confusion and legal risk.
- Document honestly. PIPs must reflect genuine performance concerns.
- Support improvement. Coaching and regular feedback are essential.
- Avoid surprises. A PIP should never be the first time an employee hears of a problem.
- Use with integrity. Misused PIPs damage trust, morale, and reputation.
About our contributors:
Mari Bonthuis and Richard Reice are partners at Sterlington. They regularly advise employers on labor and employment issues, including workplace investigations, litigation, and workforce strategy.
Contact Synergy HR For Clarity and Protection Around Developing Effective PIPs for Your Employees
Crafting a thoughtful and effective PIP takes more than a template — it requires clarity, strategy, and a genuine commitment to employee success. If your organization needs guidance developing PIPs that are fair, actionable, and legally sound, our team at Synergy HR can help.
Contact us directly to ensure your performance improvement plans work as effective tools for growth — not liabilities.
