KPIs, strategy & continuous improvement
Performance improvement plans (PIP): a fair process for Philippine employers
How to run a fair performance improvement plan: when to use one, what to include, a template, check-ins and due process considerations in the Philippines.
A performance improvement plan (PIP) is a structured, time-bound plan to help an employee close a specific performance gap. Used well, it is a genuine support tool: clear expectations, concrete help and regular feedback. Used badly, as a formality before dismissal, it damages trust and creates legal risk. In the Philippines, any action that may lead to discipline or separation must also respect due process, so documentation and fairness matter.
When to use a PIP
- An employee is consistently missing clear, communicated standards
- Informal coaching has already been tried
- The gap is specific and measurable (output, quality, accuracy, timeliness, behaviors defined in the role)
- The manager is willing to provide support and check-ins
A PIP is not the right tool for misconduct (handled through the disciplinary process) or for problems caused by unclear expectations, missing training or system issues; fix those first.
What a PIP includes
| Section | Content |
|---|---|
| Performance gap | Specific standards not met, with evidence |
| Expected results | Measurable targets the employee must reach |
| Support | Training, coaching, tools or resources the company will provide |
| Timeline | Duration, often 30 to 90 days depending on the role |
| Check-ins | Scheduled reviews, usually weekly or every two weeks |
| Consequences | What happens if targets are met, and if not, under company policy |
| Acknowledgment | Employee and manager signatures and dates |
Example
Role: warehouse inventory controller. Gap: cycle count variances investigated within 3 days in 40% of cases over the last quarter vs. a standard of 90%; two unreported adjustments. Expected results: 90% of variances investigated within 3 days for 8 consecutive weeks; zero unapproved adjustments. Support: refresher training on the counting procedure; weekly coaching with the warehouse head; access to variance reports by item. Timeline: 60 days, with check-ins every Friday.
Running the check-ins
- Review results against the targets with data
- Discuss obstacles and whether the promised support was provided
- Record the discussion briefly and share it with the employee
- Adjust support if needed, but keep the targets clear
Due process considerations in the Philippines
Poor performance can, in some circumstances, relate to just causes under the Labor Code, but employers must observe procedural due process before imposing discipline or termination. For just causes, this generally means a written notice stating the grounds, a reasonable opportunity for the employee to respond and be heard, and a written notice of the decision. A PIP is a performance management tool, not a substitute for due process. Consult HR and legal counsel before any disciplinary step, and keep complete documentation in the employee file (digital 201 file).
For probationary employees, regularization depends on reasonable standards made known at the time of engagement; see performance appraisal systems.
Making PIPs fair and effective
- Specific evidence, not general impressions
- Achievable targets consistent with what peers achieve (how to set KPI targets)
- Real support delivered as promised
- Consistency across departments and branches
- Confidentiality of the employee's situation
After the PIP
If targets are met, close the PIP formally and recognize the improvement. If they are not met, decide next steps under company policy with HR and legal advice. Either way, record the outcome.
Where Cirquolus fits
Cirquolus KPI software supports KPI tasks, accomplishments, performance reviews, improvement plans and succession planning, so performance expectations, check-ins and results are recorded alongside the team scorecards they relate to. Employee records and notices live in Cirquolus HRIS.
Frequently asked questions
What is a performance improvement plan?
A time-bound plan that sets specific performance targets, the support the company will provide and regular check-ins to help an employee close a performance gap.
How long should a PIP last?
Commonly 30 to 90 days, depending on the role and how long results take to show.
Is a PIP required before terminating for poor performance in the Philippines?
The law requires due process for disciplinary action; a PIP is a good practice to document expectations and support, not a substitute for due process. Get legal advice for your case.
Can a PIP be used for probationary employees?
Probationary employees are evaluated against standards communicated at hiring. Structured feedback helps, but follow the rules for probationary employment.
Bring this workflow to a Cirquolus demo.
Show us your current process, companies and branches. We will map it to the modules you need and propose a realistic rollout.