Performance Improvement Plans (PIPs) are one of those tools that HR teams roll out when needed to help them deal with performance challenges. When done well, they can help turn a struggling staff member into the model employee. When done badly, they can damage relations, be hugely time-consuming and even result in legal issues.
Why organisations use a PIP
A Performance Improvement Plan (PIP) is a formal, structured process used when an employee’s performance falls short of expectations. Organisations use PIPs to document performance gaps, set clear, measurable expectations, provide structured support, and - when necessary - create a fair paper trail for later decisions.
CIPD (2023): “An evidence-based approach helps ensure your performance management process is fair, transparent and effective.”
Common reasons for implementing a PIP include missed targets, recurring behavioural issues, or unclear alignment between role and organisational goals.
The challenges, risks and hidden dangers of a PIP
PIPs can work — but they are often mishandled. Common risks include:
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Perception as a “last chance” — employees frequently view a PIP as a step toward dismissal rather than support.
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Erosion of trust and morale — poorly handled PIPs damage manager-employee relationships and broader culture.
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Feedback that’s ineffective or harmful — academic research warns that "feedback might be less effective, or even harmful" unless the conditions for good feedback are present (see Feedback effectiveness: Can 360-degree appraisals be improved? Academy of Management Journals)
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Lack of root-cause analysis — PIPs that focus only on the individual and ignore systems, resources, or role clarity often fail (see this helpful guide by CIPD)
Because of these pitfalls, HR leaders must design PIPs that are clear, evidence-based and genuinely developmental. The CIPD advises an evidence-based approach to get performance management right.
Why 360 feedback makes a PIP fairer and more actionable
Harvard Business Review: “Too many companies don’t take the 360-degree feedback process seriously enough.”
A PIP needs more than a checklist — it needs multiple perspectives, measurable goals, and ongoing support. 360 feedback contributes all three:
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Multiple perspectives: 360 feedback collects observations from managers, peers and (when appropriate) direct reports — reducing bias and revealing blind spots.
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Actionable data: When feedback is aggregated and linked to specific goals, it becomes a source of measurable improvement rather than anecdote. Harvard Business Review cautions, however, that “Too many companies don’t take the 360-degree feedback process seriously enough.” That’s a reminder that the process design and follow-through are everything.
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Safer, more developmental framing: Using a structured 360 process signals that the organisation is aiming to support development, not just document failure. Recent research published by BMC Nursing and case studies also show 360-based leadership programmes can improve observed leadership practices when paired with development support.
How 360 Performance by Ten Space supports an evidence-based PIP
CIPD: “Evidence-based HR helps organisations make fairer and more effective performance decisions.”
360 Performance by Ten Space is designed to make feedback simple, goal-oriented, actionable and trackable - which is exactly what an effective PIP needs. Key advantages for PIPs:
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Link feedback to goals and actions: capture feedback, define actions and track progress in a single place.
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Collaboration and accountability: manager, employee and HR can see the same evidence and track agreed actions and check-ins.
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Trend and response tracking: dashboards show changes over time so you can objectively assess whether the PIP is producing improvement.
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Designed for real conversations: built-in support for notes, collaboration and action tracking encourage follow-up discussions — a core factor in whether feedback drives change. (As HBR and other thinkers put it, feedback must be followed by coaching and dialogue to be useful.)
Practical, step-by-step: embedding a 360 survey into a PIP workflow
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Agree the problem clearly — define the performance gap and expected standards in measurable terms. This article by SHRM has some great pointers and mistakes to avoid.
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Run a focused 360 cycle — collect input from relevant colleagues to validate and add detail to the manager’s observations.
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Review feedback together — manager, employee (and HR where appropriate) review the results, focus on strengths to amplify and gaps to close. According to HBR, this type of reinforcement makes it easier for the parties involved to be more receptive to the feedback.
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Set OKRs or SMART goals & actions — record owners, timelines and support resources in the 360 tool so progress is visible and auditable. k
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Schedule regular check-ins and track trends — monitor whether feedback scores and action status are improving.
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Reassess and conclude with evidence — at PIP close, use the tracked actions and trend data to make an objective decision: sustained improvement, further support, or alternative steps.
Conclusion
A PIP doesn’t have to be a dreaded process. When it’s transparent, evidence-based and collaborative, it becomes a powerful tool for growth.
Embedding 360 feedback through 360 Performance by Ten Space turns your PIPs into data-driven improvement journeys where everyone wins.
Ready to make your PIPs transparent, collaborative and data-driven? Why not book a demo to find out more.
