Performance Improvement Plan (PIP) Rate
Percentage of employees on a formal performance improvement plan, indicating underperformance prevalence
What is Performance Improvement Plan (PIP) Rate?
Performance improvement plan (PIP) rate is the percentage of employees on a formal plan to improve their performance. It shows how much of the workforce is being formally supported through performance problems.
It helps organisations check that performance issues are addressed consistently and fairly.
How this KPI is measured
- Function
- Human Resources
- Sub-function
- Performance Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- People
- Unit
- %
- Measurement frequency
- Quarterly
- Formula
- (Employees on PIP / Total headcount) × 100
How to calculate it
Divide employees on a PIP by total headcount, and multiply by 100.
For example, if 15 of 1,000 employees are on a PIP, the rate is 1.5%.
Track outcomes as well, such as how many improve, move roles or leave, and check the plans are applied consistently across groups.
Where it is used
Monitoring performance management
See how often plans are used.
Checking fairness
Look at patterns across groups.
Learning from outcomes
See what helps people improve.
How to improve it
Tips and common mistakes
- Follow employment law and internal policy.
- Check for patterns that suggest bias.
- A plan should give a real chance to improve.
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