Performance improvement plans (PIPs) often carry a reputation as a last resort - a formal step before termination of employment. For many employees, being placed on a PIP feels like a warning, not a chance to grow. But what if we changed that narrative? What if a PIP became a genuine opportunity for development, trust-building, and skill enhancement, rather than a source of anxiety or stigma?
To shift the perception of PIPs, we need to rethink how they’re introduced, communicated, and supported. This blog post explores how employers can approach performance improvement plans with empathy and purpose - turning a difficult moment into a meaningful opportunity.
Traditionally, PIPs have often been perceived as the final step before termination. This perception fuels fear, stigma, and disengagement. It can also feel humiliating - especially to an employee who is genuinely trying. But when implemented with care, a PIP can:
In fact, when hearing cases, the Fair Work Commission increasingly considers not just the content of a PIP, but the quality of the process - including communication, support, and opportunity to improve.
Being placed on a PIP can feel like a personal failure. Employees may experience stress, shame, or confusion. But these reactions sometimes stem from unclear expectations, lack of feedback, or insufficient support - not from a lack of capability.
A human-centred approach acknowledges these emotions and responds with:
Many organisations have seen remarkable turnarounds when PIPs are framed as developmental tools. For example:
These stories highlight that performance issues are often solvable - especially when employees feel supported rather than judged.
Managers play a pivotal role in humanising the PIP experience. Here are some coaching strategies that support a partnership approach:
Begin the conversation by acknowledging the employee’s strengths and contributions. Frame the PIP as a shared journey toward improvement, not a punishment.
Use SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) to define expectations. Avoid vague language - clarity reduces confusion and builds confidence.
Schedule weekly check-ins to review progress, offer encouragement, and adjust goals if needed. Consistent communication prevents surprises and builds trust.
Consider what the employee needs to succeed - training, mentoring, workload adjustments, or even mental health support. Document these efforts to demonstrate procedural fairness.
Invite the employee to assess their own performance and identify areas for growth. This fosters ownership and engagement.
Ensure all interactions are respectful, unbiased, and consistent. Avoid emotional reactions or snap decisions, which can lead to claims of unfair dismissal or adverse action.
To avoid costly claims, employers must ensure that PIPs:
The Fair Work Commission expects employers to show that they’ve provided clear communication, meaningful support, and a genuine opportunity for improvement.
Other changes, such as the recently introduced Right to Disconnect laws, mean that PIP-related communications must also respect employees’ personal time.
Employers who fail to follow a fair and supportive process risk reputational damage and may face costly litigation.
Humanising the PIP experience doesn’t mean compromising on standards - it means leading with compassion, communicating with clarity, and coaching with purpose. In doing so, employers not only meet their legal obligations but also build a culture of trust, resilience, and continuous improvement.
Even capable and committed employees can face performance challenges. Whether it’s due to personal circumstances, shifting priorities, or unclear expectations, a temporary dip doesn’t mean long-term failure. A well-structured PIP offers a chance to pause, reflect, and rebuild -not to discard someone who may still have a lot to offer.
Let’s remember, performance management isn’t just about fixing problems - it’s about recognising potential, even when it’s momentarily obscured.
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Georgina is the Senior HR Content Editor – Publications at the Ai Group. With over 25 years of experience in human resources and leadership, she has demonstrated her expertise across a diverse range of industries, including financial services, tourism, travel, government, agriculture and HR advisory. She is also an accomplished writer and editor, known for creating high-quality, engaging content that educates and informs. Her writing includes a variety of formats, such as blogs, articles, policies, templates and guides.
