When an employee consistently underperforms — missing deadlines, producing low-quality work, or disrupting team workflows — the situation needs to be addressed formally and constructively.
A performance improvement plan template gives managers a structured way to document the problem, set clear objectives, and track progress toward improvement. Download the free template below, then read on for a step-by-step guide to using it effectively.
What is a performance improvement plan?
A performance improvement plan is an official document for an underperforming employee. It lists the weak spots in that employee’s work and states which actions they need to undertake in order to improve their performance and become more effective in their role.
A performance improvement plan is developed by a supervisor, project manager, or team leader with direct visibility into the employee’s performance issues. The document is then approved by an HR representative before the improvement process begins.
Performance improvement plan template: 5 key elements
Every effective performance improvement plan contains five core elements:
- Purpose statement
- Performance goals and ways to achieve them
- Deadlines
- List of key participants and their roles
- Statement of implications
The performance improvement plan template gives you space to record all this information in one place. Here’s how to work with each element:
1. Purpose and problem statement
The introduction should explain why the performance improvement plan was created and what the expected outcome is. After reading this section, the employee should have a clear understanding of what they’re doing wrong, why it matters, and what is expected of them going forward.
2. Objectives and actions
To help the employee improve, managers need to provide a step-by-step action plan. It should include SMART performance objectives — Specific, Measurable, Attainable, Relevant, and Time-bound — along with the practices, tools, and methods the employee can use to meet them.
For example, if a content writer is producing less than expected, an appropriate SMART objective might be: “Write ten 1000-word articles per month.” Actions that could support this include:
- Time tracking
- Productivity audit
- Distraction blocking
- Automated editing and grammar-checking software
- Copywriting courses
3. Deadlines
Deadlines are important for keeping the improvement process structured. The plan should specify how long the improvement period will last — typically 30, 60, or 90 days — as well as dates for interim check-ins and the final review.
Clear timelines help the employee stay focused and give both parties a shared understanding of when progress will be assessed.
4. Participants and their responsibilities
The underperforming employee is the main participant, but they’re not the only one involved. Supervisors, mentors, and HR representatives all play a role in supporting, monitoring, and guiding the process.
Listing all participants and their responsibilities in the document reduces confusion and keeps communication clear throughout the improvement period.
5. Implications
The plan should specify what happens at the end of the improvement period — both if the employee meets the objectives and if they don’t. Stating these outcomes clearly sets expectations from the start and gives the employee a concrete understanding of what’s at stake.
Performance improvement plans: are they worth it?
Despite the effort involved, performance improvement plans are usually worthwhile. Here’s why:
- Decreased business costs | Low productivity carries real costs, but so does replacing an employee. Recruiting, onboarding, and training a new hire typically costs more
than helping a current team member improve. Investing in improvement is often the more cost-effective path. - Stronger employee accountability and discipline | Ignoring persistent performance issues doesn’t make them go away — it tends to make them worse. A performance
improvement plan sets clear expectations and holds the employee accountable without moving straight to disciplinary action. This promotes a sense of ownership over individual performance
outcomes. - Higher job satisfaction | Many employees assume a performance improvement plan signals imminent dismissal. In practice, a well-implemented plan shows that the
organization values the employee and wants to retain them. The key is framing it around development rather than punishment, and pairing it with genuine motivation strategies. - Formalized and effective improvement process | A performance improvement plan isn’t just a list of complaints — it’s a structured program with defined goals, timelines,
and support. This makes it possible to measure progress objectively and evaluate outcomes clearly at the end of the process.
When do you need a performance improvement plan?
A performance improvement plan should never be used as a means to start the termination process. Apply it only when a genuine possibility for improvement exists — when you believe the employee can change their behaviors and skills, and you’re prepared to support them through the process. Otherwise, it becomes a harmful formality rather than a useful tool.
Before drafting a performance improvement plan, assess whether the employee’s issues can realistically be corrected through a structured, goal-oriented process. Here are a few examples:
Example #1
Performance problem: Low-quality customer service and frequent customer complaints.
SMART improvement objective: Increase the rate of customer satisfaction by two points within the next 60 days.
Actions and tools:
- Education on active listening,
- Respond to clients’ emails in less than five minutes, etc.
Progress assessment methods: Customer rating and feedback.
Example #2
Performance problem: Too many performance mistakes that require a lot of time to fix.
SMART improvement objective: Reduce the number of coding errors per month to five in 60 days.
Actions and tools:
- Work on coding skills,
- Use an online code checker, etc.
Progress assessment methods: Work quality evaluation form.
Example #3
Performance problem: Fewer tasks are completed than expected.
SMART improvement objective: Write ten 1000-word articles per month.
Actions and tools:
- Carry out productivity audit,
- Apply automated text editing software, etc.
Progress assessment methods: Number of articles written / tasks completed.
Example #4
Performance problem: Constant work delays that disrupt project workflows.
SMART improvement objective: Meet all task deadlines within one month.
Actions and tools:
- Improve task estimation,
- Track time to detect inefficient behaviors,
- Prioritize important tasks, etc.
Progress assessment methods: Number of deadlines met.
Example #5
Performance problem: Frequent tardiness and no-shows at the workplace.
SMART improvement objective: Show up at the office before 10:00 within the next 90 days.
Actions and tools:
- Identify reasons for frequent tardiness,
- Work on time management skills, etc.
Progress assessment methods: Clock-in and -out records.
How to use the performance improvement plan template
Step 1: Identify a performance problem
Base your assessment on evidence, not impressions. Previous performance appraisals, progress logs, and other records will show whether an employee has consistently fallen short of expectations over time.
Also check whether they received any guidance or were asked to correct these issues previously. If not, it may be appropriate to address the problem through a direct conversation first, before moving to a formal performance improvement plan.
Step 2: Design a performance improvement plan
If a formal plan is necessary, use the free template to structure the document. List the specific issues the employee needs to address. State the improvement objectives and describe what acceptable performance looks like in your organization. Clear examples help the employee understand exactly what they’re working toward.
Step 3: Engage your employee in the process
Employees are more likely to commit to improvement when they understand the reasoning behind it. An honest conversation about the performance issues — one that focuses on growth rather than punishment — is more effective than presenting the plan as a disciplinary measure.
The employee should see the plan as an opportunity to advance in their role, not just a consequence for poor performance.
Step 4: Provide ongoing support
A performance improvement plan works best when the manager actively supports the employee throughout the process. This means giving specific, actionable feedback — not just checking in at the end to assess results. The more guidance the employee receives, the better the chances of a successful outcome.
Step 5: Monitor progress
Track the employee’s progress consistently and correct course when needed. Choose monitoring tools that match the specific performance problem being addressed.
For example, if the issue involves missed deadlines or poor time estimates, a time tracker like actiTIME gives employees clear visibility into how they’re spending their working hours and helps them build more accurate work habits.
Conclusion
A performance improvement plan, when built and executed properly, benefits both the employee and the organization. It reduces the costs associated with low productivity and turnover, creates accountability, and gives employees a clear, supported path to better performance.
The key is implementation: frame the plan around development, commit to ongoing support, and use objective data to measure progress. Done this way, it becomes a useful management tool rather than a formality.
