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How to Create a Performance Improvement Plan (PIP)

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How to Create a Performance Improvement Plan (PIP)

A PIP is a development tool, not a dismissal pathway. Here is how to build and run one that gives employees a genuine chance to improve in African company contexts.

Oba Adeagbo

Marketing Lead

May 26, 2026

4 Mins Read

A Performance Improvement Plan has a reputation it does not deserve. Most employees hear "PIP" and immediately start updating their CVs. Most managers present a PIP already assuming it will fail. That psychological context ensures the plan produces exactly what everyone expected: documentation for a dismissal that was already decided.

A PIP used correctly is none of that. It is a structured, time-bound agreement that says: here is the specific gap, here is the specific standard you need to reach, here is the support we are committing to provide, and here is the timeline. It treats the employee as a person who can improve, not a problem to be managed out.

This article explains how to build and run a PIP that genuinely gives employees the opportunity it is supposed to give them, particularly in Nigerian and Kenyan organisations where employment law, relationship dynamics, and documentation practices create a specific context that general PIP guides do not address.

When to use a PIP (and when not to)

A PIP is appropriate when: the performance gap has been documented in at least one previous feedback conversation; the gap is in the employee's capability or behaviour, not in their motivation or role design; the gap is specific and improvable within a defined timeframe; and the organisation genuinely believes improvement is possible.

A PIP is not appropriate for: conduct issues (those require a disciplinary process, not a performance plan); situations where the role has been redesigned to the point where the original hire criteria no longer apply; or situations where the decision to terminate has already effectively been made and the PIP is being created to document a predetermined outcome.

According to AIHR's 2025 analysis of PIP best practices, a PIP should not come as a surprise to the employee. If it does, the coaching and feedback process that should have preceded it was missing.

The five components of an effective PIP

Component 1: Specific performance gap

Name the gap precisely. Not "inadequate performance" but: "In the past three months, [Employee] has missed four of the five client report deadlines (deadlines: [dates]; submission dates: [dates]). The role standard requires submission within 24 hours of the agreed deadline with a quality score of 7/10 or above on the internal review rubric. The average quality score over the same period was 5.2/10."

That level of specificity is what makes a PIP legally defensible and practically useful. The employee cannot argue they did not know what the problem was. The manager cannot drift into subjectivity when tracking progress.

Component 2: SMART improvement targets

Each improvement target should be Specific, Measurable, Achievable, Relevant, and Time-bound.

  • Specific: "Submit all client reports within 24 hours of the agreed deadline"
  • Measurable: "Achieve a quality score of 7/10 or above on all submissions"
  • Achievable: "Given a reduced portfolio during the PIP period and weekly coaching sessions"
  • Relevant: "This is the primary deliverable of the role"
  • Time-bound: "For all reports due within the 60-day PIP period"

Component 3: Support commitments from the organisation

A PIP without support commitments is not a development plan. It is a list of demands. The organisation must specify what it will provide:

  • Weekly 30-minute coaching sessions between manager and employee
  • Access to a specific learning resource (a Talstack Learning Path, an external course, or a peer mentor)
  • Reduced workload for the first four weeks to allow focus on the improvement areas
  • HR availability for questions or concerns during the PIP period

Component 4: Timeline and review points

Standard PIP timelines are 30, 60, or 90 days depending on the nature and severity of the gap. Include formal review points within the PIP period: a mid-point check at day 30 for a 60-day plan, or at days 30 and 60 for a 90-day plan.

Each review point should ask: is the employee on track? Is the support being provided? Does the plan need to be adjusted?

Component 5: Consequences and next steps

State the consequences clearly but without being punitive: "If the improvement targets are met by [date], the PIP will be closed and the employee will return to the standard performance review process. If the targets are not met, the outcome will be [further action, which may include continued PIP, role change, or termination, following the company's disciplinary process]."

Do not specify termination as the automatic outcome of a failed PIP. Employment law in Nigeria, Kenya, and South Africa requires fair process, and an automatic termination clause is rarely enforceable without additional steps.

How to present the PIP

The PIP meeting should include the employee, their manager, and an HR representative. HR's role is to ensure the plan is fair, specific, and consistent with policy; to answer the employee's process questions; and to represent the organisation's commitment to the support elements.

Give the employee time to read the document during the meeting. Ask for their feedback. Be prepared to make adjustments to the support elements or timeline if the employee's input is reasonable. Do not make adjustments to the targets or the definition of the gap unless genuinely new information is presented.

Frequently asked questions

Should the employee sign the PIP?

Yes. The signature acknowledges receipt and participation in the process, not agreement with the assessment. If the employee refuses to sign, document that the PIP was presented and discussed, and note the refusal. Do not delay the PIP or withdraw it because of a refusal to sign.

What happens after a successful PIP?

After a successful PIP, the employee returns to the standard review cycle. The PIP period should be referenced in the next formal review, but only in terms of progress made, not as a permanent marker on the employment record. An employee who demonstrated genuine improvement during a PIP deserves to have that improvement acknowledged in the next cycle's assessment.

The bottom line

A PIP built on specific evidence, SMART targets, and genuine organisation support is a fair and useful development tool. A PIP built on vague complaints, unrealistic targets, and no support is a dismissal document in disguise. Employees can tell the difference. So can employment tribunals.

Build the version that gives the employee a genuine chance. If improvement is not possible, the evidence of a fair process will be there regardless. If improvement is possible, you will have retained a capable employee who knows the organisation was willing to invest in them when it mattered.

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