Your PIP isn’t working — here’s why (and what to do about it)
Struggling with underperformance but your Performance Improvement Plan (PIP) isn’t getting results? You’re not alone. Many New Zealand employers put a PIP in place and expect miracles. The truth? If your process isn’t clear, compliant, and supported — it’s likely to fail.
In this post, we’re unpacking the real reasons PIPs fall flat, and what to do to make them legally sound and actually useful.
What is a PIP? (And Why It Matters)
A Performance Improvement Plan (PIP) is a formal process used to support an employee to improve their performance to a satisfactory level. It sets clear expectations, outlines timelines, and gives the employee a fair shot at success.
In New Zealand, it’s also a critical part of protecting you legally. If you terminate someone for performance reasons without a fair PIP process? You’re exposed to a personal grievance claim under the Employment Relations Act 2000.
What is a PIP? (And Why It Matters)
A Performance Improvement Plan (PIP) is a formal process used to support an employee to improve their performance to a satisfactory level. It sets clear expectations, outlines timelines, and gives the employee a fair shot at success.
In New Zealand, it’s also a critical part of protecting you legally. If you terminate someone for performance reasons without a fair PIP process? You’re exposed to a personal grievance claim under the Employment Relations Act 2000.
5 Reasons Your PIP Isn’t Working
1. The goals are vague
If your plan says “needs to communicate better” or “be more proactive,” you're already losing. PIPs must set measurable expectations. Think: “Respond to all customer queries within 24 hours” — not “communicate better.”
2. You’re not giving enough support
A PIP is not a trap. If you haven’t offered training, guidance, or regular feedback, then you haven’t given them a fair chance.
3. The employee had no idea
If this PIP came out of nowhere and the employee had no prior warning about performance issues, it’s a red flag. You must have already raised concerns informally first.
4. You're not following through
If you forget to hold the check-in meetings or give feedback during the PIP period, the employee has a strong argument that the process wasn’t fair.
5. You’re using it as a fast track to dismissal
If your intention is to exit the employee from day one, that’ll come back to bite you. PIPs must be implemented in good faith — with genuine support and an open mind.
What a Good PIP Looks Like
Clear objectives tied to the job description
Realistic timelines (usually 4 to 8 weeks minimum)
Specific success criteria
Regular review meetings with notes
Documented outcomes and agreed next steps
It also needs to be tailored. No generic copy-paste job.
The Legal Side: Why It Matters
In New Zealand, dismissing someone for poor performance without following a fair and reasonable process breaches the Employment Relations Act 2000. If your process is rushed, vague, or one-sided, it won’t hold up under scrutiny.
Employees can file a personal grievance, even if their performance was actually poor. You must show that you acted fairly.
What To Do If The PIP Fails
If performance doesn’t improve despite support, you’ll need to:
Hold a final review meeting
Document the outcome
Decide on next steps — which might include extending the PIP, redeployment, or beginning a dismissal process (with consultation)
Don’t skip straight to termination without a final documented step.
Don’t Leave It to Guesswork
Most PIPs fail because they’re rushed, unclear, or done without support. If you’re not sure yours will hold up — or you’re in the middle of one and it's getting messy — it’s time to get help.
At Succession Consulting, we can:
Review or create your PIP with compliant templates
Coach your managers through the process
Handle the messy conversations (yes, really)
Reduce your risk and increase your outcomes
📥 Need a solid PIP template you can customise for your business?
📞 Or give us a call and we can guide you through the process.
