HR Q&A – Should I Use a Performance Improvement Plan?

Understanding the difference between a Performance Improvement Plan (PIP) and disciplinary action matters more than many employers realize.

When a Performance Improvement Plan Makes Sense

Performance Improvement Plans are best used for performance issues, not behavior problems. Think situations like an employee who consistently misses sales goals, struggles to meet deadlines, or isn’t completing projects as expected.

A PIP is meant to do two things:

  • Clearly communicate that performance must improve

  • Give the employee a fair, structured opportunity to succeed

Most PIPs run for a defined period—typically 60 to 90 days—and include:

  • Clear expectations and measurable goals

  • Regular check-in meetings

  • Ongoing feedback and documentation

When used correctly, a PIP isn’t about pushing someone out the door. It’s about setting them up to either improve—or making next steps clear and defensible if improvement doesn’t happen.

When Discipline Is the Better Option

Disciplinary action is different. It’s used when the issue involves conduct, compliance, or policy violations, and it can take several forms depending on the situation.

Examples include:

  • A written warning for repeatedly failing to follow call-in procedures

  • A final warning after multiple cash drawer shortages

  • Immediate termination for serious violations such as safety breaches or harassment

In these cases, a PIP isn’t the right tool. The issue isn’t performance—it’s behavior or risk to the business.

Why Progressive Discipline Works

If an issue doesn’t rise to the level of immediate termination, we typically recommend a progressive discipline approach. That means starting with coaching or reminders, documenting warnings, and escalating only if the behavior continues.

Progressive discipline helps employers:

  • Give employees a chance to correct issues

  • Avoid unnecessary turnover and hiring costs

  • Maintain consistency and fairness across the team

  • Build proper documentation if termination becomes necessary

It’s not about being soft—it’s about being smart, consistent, and protected.

This blog does not constitute formal HR or legal advice and does not address state or local laws. Our HR Resource Center by Mineral offers further guidelines for this and many other topics. For a small additional fee you can also speak to a live HR Specialist. Contact your friendly APlus Payroll CSS for further information (including login details) or login here. Want to know how we can help your Payroll or Time & Labor process? Please contact us here. Consultation is friendly and free!