Performance Improvement Plan (PIP)
A performance improvement plan (PIP) is a written plan that sets out where an employee's work is falling short, what has to change, the support they will get and the dates progress will be reviewed. It turns a general concern into a fixed, shared record before any decision about the job is taken.
Also called: PIP, PIP in HR, performance improvement plan meaning, improvement plan
Key facts
- Written by
- The manager, with HRThe employee sees it before it starts.
- Typical length
- 30–90 daysLong enough for change to show.
- Seen by
- Employee, manager, HRNobody else needs it.
What a PIP contains
- The specific gap, with examples, measured against the role's objectives or expected competencies rather than a general impression.
- Targets the employee can meet and the manager can check, each with a date.
- The support on offer: training, coaching, closer check-ins or a change in workload.
- Review points during the plan, not only at the end.
- What closes it: met, extended, or escalated, decided against the targets written at the start.
Fair plan or paper trail
A PIP works when the targets can be reached in the time given and the support is real. A plan written so that it cannot be met is a record built for an exit, the employee can tell the difference, and so can anyone who reviews the decision later.
Keep it between the employee, their manager and HR. A plan that circulates becomes a reputation, and that makes improvement harder.
Where it starts
A PIP usually follows a review rated below expectation, a run of missed objectives, or a competency rating well under the level the role expects. When those records already sit in one system, the plan starts from evidence on file rather than from memory.
Performance Improvement Plan (PIP), answered
A performance improvement plan: a written plan setting out where an employee's work falls short, the targets they must meet, the support they will get and the dates progress is reviewed.
Usually 30 to 90 days. It needs to be long enough for a change to show in the work and short enough to keep both sides paying attention, with review points along the way.
No. A warning records misconduct or a broken rule. A PIP is about the standard of the work, and it is built around targets and support. They answer different problems, even when a company uses both.
This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.
Related terms
- Probation Periodपरीक्षणकालProbation is the initial period during which an employer assesses a new employee before confirming them. Nepal's Labour Act 2074 caps it at six months, after which the employee is confirmed or the engagement ends.
- Notice Periodसूचना अवधिA notice period is the time between notifying the other party that employment will end and the last working day. In Nepal the requirement depends on the ground for ending the engagement and on what the contract says.
- Attrition RateAttrition rate is the proportion of employees who leave over a period, usually expressed annually. It is calculated as leavers divided by average headcount for the period, times one hundred.
- OKR (Objectives and Key Results)OKR stands for Objectives and Key Results: a goal-setting method that pairs an objective written in words with a few measurable key results that show whether it was reached. Company OKRs cascade into department, team and individual ones, so each person's goals trace back to the company's.
- 360-Degree Feedback360-degree feedback is a review in which an employee is rated by the people who work around them (their manager, peers, direct reports and sometimes clients) as well as by themselves. Answers are pooled by group so that raters can be candid.
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