How to Write a Performance Improvement Plan in Canada
You have an employee who isn’t meeting expectations. You’ve mentioned it a few times, but the problem keeps coming back. Now you’re wondering whether it’s time for a performance improvement plan.
If you run a small business, you probably don’t have a dedicated HR person to write one for you. And you may be asking a more basic question: What is a performance improvement plan supposed to accomplish?
A performance improvement plan, usually called a PIP, puts the concern and the path forward in writing. It explains what needs to improve, what support the employee will receive, when you’ll check in and how you’ll decide whether performance has improved.
It does not need to be a complicated 12-page document. It does need to be clear, fair and followed.
In this article
When should you use a performance improvement plan?
A formal PIP can be helpful when a performance problem is ongoing or significant, the employee needs to make a clear change, and you need a structured way to assess progress.
For example:
A bookkeeper repeatedly submits reports with errors despite receiving feedback.
A supervisor consistently misses scheduling deadlines, leaving the team scrambling.
A sales employee is not completing required client follow-up or entering information into the CRM.
A manager continues to miss agreed project milestones and does not communicate delays.
Those are concerns you can describe, discuss and measure.
A PIP may be less useful when someone has made one mistake, has never been told what the standard is, or needs basic training that the business has not provided. In those cases, start with a conversation, clearer direction or coaching.
A PIP is not required for every performance issue. There is no universal Canadian rule saying every employee must be placed on a formal PIP before their employment can end. The right approach depends on the situation. We cover the termination side in Can You Fire an Employee for Poor Performance in Canada?.
The first question is whether a written plan would genuinely help both of you understand what needs to happen next.
What should you do before writing one?
Before opening a template, take a step back. A PIP will only be as useful as your understanding of the problem.
Ask yourself:
What, specifically, is not meeting expectations? Can you point to work, dates, examples or missed requirements?
Did the employee know what was expected? Was the standard explained and reasonably achievable?
Have you told them there is a problem? A PIP should not be the first time they hear that their performance is concerning.
Have they had the training, tools and authority to do the job?
Could the issue be a workload, process or management problem? If five people are missing the same deadline, look at the system as well as the individuals.
Has the employee raised a health issue or need for accommodation? That may require a different conversation and appropriate support.
You don’t need to solve every question before talking to the employee. You do need to go into the conversation willing to listen. Sometimes what looks like a performance problem reveals unclear priorities, missing training or a process that isn’t working.
What should a PIP include?
For most small businesses, a useful plan can fit into a few pages. Include these seven pieces.
1. The performance concern
State what has happened using specific examples. Describe the work, not your opinion of the person.
Vague: “You aren’t reliable enough.”
Specific: “The weekly inventory report was submitted after the Monday noon deadline in four of the past six weeks.”
If quality is the issue, explain what was missing or incorrect. If communication is the issue, describe the required communication and when it did not happen.
Avoid loading the plan with every frustration you’ve had since the employee started. Focus on the issues that matter most and that the employee can reasonably address.
2. The expected standard
Tell the employee what meeting expectations looks like.
For the inventory example, that might be:
“Submit a complete inventory report by noon every Monday, using the current reporting template. Flag any missing supplier information to your manager by Friday at 2 p.m.”
That is much more useful than “improve your time management.” The employee knows what to do, and the manager knows what to review.
3. The actions the employee will take
List the practical steps the employee is expected to take. These should connect directly to the concern.
For example, the employee may need to update a task tracker daily, review a report against a checklist before submitting it, or tell their manager as soon as a deadline is at risk.
Keep this manageable. A plan with 20 action items can make it harder to see the two or three changes that actually matter.
4. The support the business will provide
This part is easy to overlook, especially in a busy small business. What does the employee need from you to succeed?
You might provide:
Training on a system or process;
A current procedure or checklist;
Clearer priorities when work conflicts;
Time with a more experienced employee;
Access to missing information;
Feedback on draft work; or
Regular check-ins with the manager.
Be specific about who will provide the support and when. “We will support you” sounds reassuring, but “Your manager will review your first two reports with you on Friday mornings” is something you can both follow through on.
5. The review period and check-in dates
Set a realistic period for the employee to demonstrate improvement. Then schedule check-ins during that period.
There is no magic number of days that works for every PIP. If the employee completes the relevant task every week, you may be able to assess progress over several weeks. If the work follows a monthly cycle, they may need longer to show a sustained change.
Think about how many genuine opportunities the employee will have to demonstrate the required performance, not just how long you would like the process to take.
6. How you will assess progress
Say what you will look at during each check-in and at the end of the plan.
For example:
“We will review whether each weekly report was submitted on time, contained the required sections and accurately reflected the information available by the deadline.”
This keeps the discussion tied to the work. It also makes the final review much easier than trying to rely on everyone’s memory of how the past month felt.
7. Possible next steps
Explain that you will review the employee’s progress at the end of the plan. If continued failure to meet expectations may lead to further action, including termination of employment, communicate that clearly.
You do not need to promise a particular outcome in advance. You do need to be honest about the seriousness of the concern.
What does a simple PIP look like?
Let’s use an example from a small business where the office administrator prepares weekly client invoices.
Part of the plan | Example |
Concern | Invoices were sent after the Tuesday deadline in three of the past five weeks. Two batches also required corrections because approved hours were missing. |
Expectation | Send complete and accurate client invoices by 4 p.m. each Tuesday. |
Employee actions | Review approved hours on Monday, flag missing information by noon Tuesday, and check invoices against the billing checklist before sending. |
Employer support | The owner will confirm any unusual billing instructions by Monday afternoon and review the first two invoice batches before they are sent. |
Check-ins | Meet for 15 minutes each Wednesday for six weeks to review the previous day’s invoices and resolve any obstacles. |
Final review | At the end of six weeks, review invoice timeliness, accuracy and whether missing information was flagged in time. |
The plan should also record when it was discussed, any response from the employee and the date of the final review.
Notice that this example does not require a complicated scoring system. Both sides can see what is expected and whether it is happening.
How should you introduce the plan to the employee?
Have a private conversation. Do not send the PIP by email without discussing it.
A straightforward opening could sound like this:
“I want to talk about the invoice deadlines and errors we’ve discussed over the past few weeks. The issue is still happening, so I’ve put together a written plan to make the expectations and support clear. I want to walk through it with you, hear your perspective and agree on how we’ll review progress.”
Then explain the examples and pause. Give the employee a chance to respond.
They may disagree with a fact, point out a missing instruction or identify an obstacle you were not aware of. Listening does not mean dropping the concern. It helps you make sure the plan addresses the right problem.
After the conversation, give the employee a copy. If you ask for a signature, explain what it means. Usually, the purpose is to acknowledge receipt and discussion, not to require the employee to agree with every statement. Record any written response they want to provide.
What should happen during the plan?
The manager has work to do too.
Hold the check-ins you scheduled. Review actual examples of work. Tell the employee what has improved and what still needs attention. Provide the training or support you promised. Make a short note of each discussion.
If the employee is improving, say so. If they are still missing an expectation, be equally clear. Waiting until the final meeting to reveal that things were not going well defeats much of the purpose of the plan.
You may also need to adjust the plan if circumstances change. For example, the employee may be away for part of the review period, a system may be unavailable, or you may discover that a deadline depends on someone else completing their work first. Document any changes and explain them to the employee.
A PIP should reflect the work the employee actually had the opportunity to perform.
What if performance improves, or doesn’t?
At the final review, look at the expectations in the plan and the evidence you gathered.
If the employee has met expectations: Tell them the plan is complete. Explain that the standards remain part of their role and continue providing normal feedback.
If there has been meaningful but incomplete improvement: Consider why. Was the time period too short? Was support delayed? Is there a narrower issue that still needs attention? You may decide to extend or adjust the plan, with clear reasons.
If performance has not improved: Review the full situation before deciding on further action. Consider what was communicated, what support was provided, whether the expectations were reasonable and whether any accommodation issue needs to be addressed.
Completing a PIP does not automatically turn poor performance into grounds for termination without notice or pay. If you are considering ending employment, particularly for cause, get advice on the facts and the employee’s entitlements before acting.
Common mistakes to avoid
Using a PIP as a surprise
If the employee has never received clear feedback, begin with a conversation. A formal plan should clarify an existing concern, not reveal one that management has discussed privately for months.
Writing goals you cannot measure
“Be more positive” and “show leadership” leave too much room for interpretation. Describe the actions, work results or behaviours the role requires.
Giving an impossible deadline
The employee needs a reasonable chance to demonstrate improvement. Match the review period to how often the relevant work occurs.
Promising support and not providing it
If the plan says the manager will meet weekly or provide training, make time for it. Your own follow-through matters.
Treating every problem as an individual problem
An employee cannot fix a broken approval process, constantly shifting priorities or a workload that no one in the role could reasonably manage. Address those issues as well.
Ignoring a possible accommodation need
If an employee raises a disability or health-related concern, pause and address the potential need for accommodation appropriately. You can still discuss the requirements of the job, but the situation may need more than an ordinary performance plan.
Deciding the outcome before the plan begins
If there is genuinely no outcome that would allow the employee to remain in the role, a PIP may be the wrong approach. Be honest about the decision you are actually making and get advice on how to handle it.
Frequently asked questions
How long should a PIP last?
Long enough for the employee to understand the expectations, receive the promised support and have a reasonable opportunity to demonstrate improvement. There is no standard 30-day or 90-day period that fits every job.
Does a PIP have to be formal?
No. Sometimes a documented coaching conversation with clear next steps is enough. A formal PIP is useful when you need more structure, a longer review period or clearer documentation.
What if the employee refuses to sign it?
Ask why and give them an opportunity to provide a written response. Document that you met, discussed the plan and provided a copy. A signature is not what makes the expectations clear or the process fair.
Can an employee be terminated after a PIP?
Potentially, but the answer depends on the circumstances and the applicable employment obligations. A PIP is a record of expectations and progress, not an automatic legal basis for a for-cause termination. See our article on terminating an employee for poor performance in Canada for more on that distinction.
A clear plan beats a complicated one
For a small business, performance issues can feel personal. You work closely with your employees, and you may have put off the conversation because you don’t want to make things uncomfortable.
Clear expectations are kinder and more useful than months of hints and frustration. If improvement is possible, a practical plan gives the employee a fair chance to make it happen. It also gives you a better basis for deciding what to do next.
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Need help with a performance issue?
A&A can help you assess what is happening, decide whether a PIP makes sense, write a practical plan and support your manager through the conversations.
This article provides general information and is not legal advice. Employment and human rights obligations vary by jurisdiction and situation. Seek advice before making a complex accommodation or termination decision.
