PIP

Performance Improvement Plan

Formal documented process for an underperforming employee — defined goals and timeline, often precedes termination.

When you'd see it: Managing an underperforming employee. A PIP is the formal, documented step that often precedes termination.

Why it matters: A PIP sets explicit goals and a timeline for an employee to improve, and documents the process. It is partly a genuine chance to recover and partly legal protection for the eventual decision.

Common mistakes: Reading every PIP as just a paper trail for firing. Some are real and recoverable. The goals and the manager's intent are what tell you which.