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Performance Improvement Plan
"I need a performance improvement plan for an employee with 2 years of service, outlining specific goals and metrics to be achieved within 60 days, with bi-weekly progress reviews and support resources."
What is a Performance Improvement Plan?
A Performance Improvement Plan (PIP) is a formal tool that Filipino employers use to help struggling employees meet their job expectations. It sets clear, measurable goals and timelines while documenting specific areas where an employee needs to improve their work performance.
Under Philippine labor laws, PIPs serve as both a developmental opportunity and a compliance requirement before any performance-based termination. The plan typically spans 30 to 90 days and includes regular check-ins, training support, and concrete metrics to track progress - protecting both the company's interests and the employee's right to due process in employment matters.
When should you use a Performance Improvement Plan?
Use a Performance Improvement Plan when an employee consistently falls short of job expectations but shows potential for improvement. Common triggers include missed deadlines, poor quality work, or failure to meet sales targets - especially when informal coaching hasn't solved the issue.
Under Philippine labor laws, implementing a PIP before considering termination helps protect your company from wrongful dismissal claims. It's particularly valuable when dealing with previously strong performers who've shown recent decline, or when an employee needs clear documentation of performance standards and improvement milestones to meet Department of Labor and Employment requirements.
What are the different types of Performance Improvement Plan?
- Basic Performance Improvement Plan: Focuses on core job duties and sets straightforward goals over 30-60 days, ideal for entry-level positions
- Comprehensive PIP: Includes detailed metrics, training plans, and multiple review stages over 90 days, typically used for management roles
- Sales-Specific PIP: Centers on quota attainment, customer satisfaction, and revenue targets with monthly milestones
- Behavioral Improvement Plan: Addresses conduct and interpersonal issues while adhering to Philippine labor standards
- Skill Development PIP: Emphasizes specific technical or professional competencies with clear training components
Who should typically use a Performance Improvement Plan?
- HR Managers: Draft and oversee Performance Improvement Plans, ensure compliance with Philippine labor laws, and coordinate the implementation process
- Direct Supervisors: Identify performance gaps, set specific goals, and conduct regular progress meetings with employees
- Employees: Must acknowledge, follow, and meet the improvement targets outlined in their PIP within the specified timeframe
- Department Heads: Review and approve PIPs, ensuring alignment with departmental objectives and fair treatment
- Legal Department: Reviews PIPs to ensure they meet DOLE requirements and protect the company from potential disputes
How do you write a Performance Improvement Plan?
- Performance Documentation: Collect specific examples of performance issues, including dates, incidents, and previous feedback
- Job Description Review: Compare current performance against official role requirements and KPIs
- Timeline Planning: Set realistic improvement deadlines that comply with Philippine labor standards
- Support Resources: Identify training, mentoring, or tools needed to help the employee succeed
- Measurement Criteria: Define clear, objective metrics to evaluate progress
- Legal Compliance: Our platform ensures your PIP includes all DOLE-required elements and proper documentation
What should be included in a Performance Improvement Plan?
- Employee Information: Full name, position, department, and employment history within the company
- Performance Issues: Specific, documented examples of areas needing improvement, aligned with DOLE standards
- Improvement Goals: Clear, measurable objectives with defined success criteria and timelines
- Support Plan: Detailed resources, training, and assistance to be provided during the improvement period
- Review Schedule: Regular monitoring dates and evaluation criteria
- Acknowledgment Section: Signatures from employee, supervisor, and HR representative, with date fields
- Consequences Statement: Clear outline of what happens if goals are or aren't met
What's the difference between a Performance Improvement Plan and a Performance Review Document?
A Performance Improvement Plan differs significantly from a Performance Review Document in both purpose and legal implications under Philippine labor law. While they're related, understanding their distinct roles helps ensure proper employee management and legal compliance.
- Primary Purpose: PIPs are corrective tools focused on future improvement, while Performance Reviews document past achievements and general assessment
- Legal Weight: PIPs serve as formal documentation for potential termination proceedings, making them crucial for DOLE compliance. Reviews typically don't carry the same legal significance
- Timeline: PIPs have specific improvement deadlines and milestones, whereas Reviews are periodic assessments without mandatory improvement targets
- Structure: PIPs require detailed action plans, support measures, and consequences. Reviews focus on evaluation criteria and general feedback
- Follow-up Process: PIPs mandate regular check-ins and documented progress meetings, while Reviews usually conclude with an annual or semi-annual discussion
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