Layoffs and exits · 6 min read
I've been put on a performance improvement plan. What does it mean and what should I do?
What a performance improvement plan really signals, how to tell a fair PIP from an exit route, and how to choose between fighting it and negotiating a way out.
The short answer
A performance improvement plan (PIP) is a written plan, usually 30 to 90 days long, that sets out where your work falls short, what good looks like, how it will be measured and what happens if you miss it. Some PIPs are a genuine attempt to help you improve; others are paperwork before a dismissal that has already been decided. Read it for specifics: measurable targets, regular check-ins and support suggest the first, vague goals and an impossible timeline suggest the second. Either way, do three things in the first week: get the targets clarified in writing, keep your own record of every check-in, and start a quiet job search so the outcome is never your only option.
Key takeaways
- A PIP is a document, not a verdict. What matters is whether its targets are specific, measurable and reachable in the time given.
- Ask for every vague target to be rewritten as something you can be measured on, and confirm it by email.
- Keep your own dated notes of each review. In the UK, Acas guidance expects a fair, documented process.
- Some employers now offer a choice between a PIP and an agreed exit payment. If the plan looks unwinnable, an exit can be negotiated.
On this pageHow to tell a real plan from an exit route
How to tell a real plan from an exit route
| Signal | Suggests a genuine plan | Suggests an exit route |
|---|---|---|
| Targets | Specific and measurable: close 12 tickets a week at 95% first-time fix | Vague: show more ownership, communicate better |
| Timeline | Long enough for results to show, often 60 to 90 days | Two to four weeks for work that takes a quarter |
| Support | Named training, a mentor, weekly check-ins | None listed, or check-ins that keep moving |
| Your workload | Normal, so you can demonstrate the targets | Reduced or removed, so you can't |
| History | Earlier feedback that matches the PIP | No earlier warnings, then a PIP after a new manager or reorg |
What to do in the first week
- Read it twice and list every target that can't be measured. Email your manager asking for each one to be defined, with the number or example that would count as meeting it.
- Ask what support you'll get and when the check-ins are. Put the dates in your calendar and confirm by email.
- Start a private log: date, what you delivered, what was said at each check-in. Keep it off company systems.
- If you disagree with the facts, write a short, calm response for your file. Stick to dates and examples, not feelings.
- Update your CV and start a light job search. You're not giving up; you're making sure one meeting can't decide your income.
When to fight it and when to negotiate out
Fight it when the targets are reachable, you think the criticism is partly fair, and you want to stay. Then over-deliver on the measured items and make your progress visible at every check-in. Negotiate out when the targets are unreachable, the relationship with your manager has broken down, or you were already thinking of leaving. In that case, ask HR for a private conversation about a mutual separation: notice pay, a lump sum, an agreed reference and an agreed leaving message. In the UK this is usually done through a settlement agreement; in the US through a severance agreement. Some large employers, Microsoft among them in 2025, have formally offered staff the choice between a PIP and a payment to leave, which tells you how common this route is.
Your rights, briefly
- UK: a fair capability process usually means clear warnings, a chance to improve and the right to be accompanied at formal meetings. You need two years' service to claim unfair dismissal until 1 January 2027, when it falls to six months.
- US: most jobs are at will, but a PIP can't be a cover for discrimination or retaliation. If it followed a complaint, leave request or disclosure of a health condition, write down the dates.
- Both: if a health condition or disability affects your performance, raise it in writing. Employers may need to make adjustments before judging you.
Illustrative example: the plan that wasn't winnable
An account manager gets a 30-day PIP asking her to grow two accounts by 15%, in a market where renewals happen once a year. She asks for the target to be measured on pipeline instead, and is told no. She keeps her log, applies for four roles, and asks HR about a mutual exit. Two weeks later she leaves with eight weeks' pay and an agreed reference, and starts a new job a month after that.
Questions people ask
- Does a PIP mean I'm going to be fired?
- Not always, but often enough that you should plan for it. Many people do pass PIPs, especially when the problem is one clear skill or a misunderstanding about expectations. The risk is highest when the targets are vague, the timeline is short, your manager has already stopped giving you work, or the PIP arrives just after a reorganisation. Treat it as a serious warning and keep a second option open.
- Can I refuse to sign a PIP?
- You can decline to sign it as agreement, but refusing rarely stops the process and can be recorded as uncooperative. A better move is to sign to acknowledge you received it, and add a short written note saying which points you dispute and why. That keeps your disagreement on the record without giving the employer a new complaint.
- Should I quit before the PIP ends?
- Quitting gives up any exit payment you might negotiate, and in the US it can affect unemployment benefits. Resigning can make sense once you have an offer elsewhere, or if staying is damaging your health. Before you resign, ask HR whether a mutual separation with notice pay is possible. Many employers prefer a clean agreed exit to a contested dismissal.
- How long does a PIP last?
- Most run 30, 60 or 90 days, with weekly or fortnightly check-ins. In the UK, a capability process usually has stages, with warnings and a right to be accompanied at formal meetings, so a single PIP is rarely the last step. In the US, most employment is at will, so an employer can end the job before the PIP finishes unless a contract says otherwise.
Exercises are practice, not evidence of career fit or a qualification. How to read our guides and report a correction.
Sources
- Managing performance · Acas
- Dismissal: your rights · GOV.UK
- Severance pay · US Department of Labor
How this page is written
Sources support the factual background, not a guarantee that an exercise predicts career fit. Fictional practice material is labelled. Dates record content updates; no independent expert review is implied. More about OffLadder.