NepalHRM
HR systems & metrics

Performance Improvement Plan (PIP)

Definition

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.

Common questions

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.

Last reviewed 2026-10-16

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.

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