Performance improvement plans (PIPs): nobody likes writing them, and nobody likes being on one. But if you’re managing a team — especially a globally distributed one — they’re absolutely essential. Without a transparent, well-documented process for addressing underperformance, you risk confusing expectations, damaging morale, and opening your company up to compliance risk.
A strong PIP isn’t about checking boxes or laying the groundwork for termination. It’s a structured, collaborative tool that helps underperforming employees get back on track — and helps managers lead with clarity, consistency, and fairness. When your team stretches across time zones, borders, and cultures, it pays to have a solid process.
Key takeaways:
- A well-crafted PIP transforms vague employee performance concerns into specific, measurable goals with clear timelines and support systems.
- Early intervention through informal feedback often prevents the need for formal PIPs, but knowing when to escalate is crucial for both employee success and legal compliance.
- Global teams require PIPs that account for cultural differences, local labor laws, and varying communication styles across regions.
When Should You Use a Performance Improvement Plan (PIP)?
When an employee consistently misses deadlines, fails to meet quality standards, or demonstrates poor attendance patterns, it may be time to create a performance improvement plan. These formal documents help employees course-correct before specific performance issues become insurmountable.
Helping employees improve their performance deficiencies typically costs far less than recruiting and hiring new employees. Beyond the financial aspect, investing in current employees builds trust, demonstrates your commitment to their success, and preserves institutional knowledge. When employees see that their coworkers get real help — clear goals, training, and regular check-ins — during rough patches, it sends a powerful social signal and boosts retention. They’re more confident the company will support them too, which research shows makes them 69% less likely to shop for a new job.
Before Jumping to a PIP
You don't need to implement a formal PIP at the first sign of trouble. Consider these less formal steps first:
- One-on-one conversations: Schedule regular check-ins to discuss concerns and expectations. Sometimes, employees aren't aware their performance isn't meeting standards.
- Informal feedback sessions: Provide constructive feedback during regular meetings or performance reviews. Document these discussions in email follow-ups.
- Additional training or resources: Performance issues often stem from skill gaps or unclear processes rather than insufficient effort.
- Workload reassessment: Ensure the employee's responsibilities align with their role and capacity.
However, if these methods haven't yielded improvement after a reasonable timeframe (typically 30-60 days), or if the performance issues seriously impact team productivity or client relationships, it's time to implement a formal PIP process.
Legal Considerations for Global Teams
In many countries, employers must document performance improvement efforts and take specific action steps before proceeding to termination. For example:
- European Union: Many Member States won’t uphold a poor-performance dismissal unless you first warn the employee, and then implement a documented improvement plan.
- Brazil: To rule on a just-cause firing, Brazilian courts look for a paper trail showing progressive discipline: a verbal warning leading to written warning resulting in a suspension followed by termination.
- India: A performance-based termination will be struck down if the employer can’t show that the worker got clear feedback and a genuine chance to improve.
One way to ensure compliance with local employment laws governing PIPs and terminations is by working with an Employer of Record like RemoFirst.
What to Include in a Global PIP
Creating an effective PIP requires careful attention to detail and cultural sensitivity. Here are the essential components every PIP should include:
Clear Identification of Performance Issues
Start by documenting specific, observable behaviors or outcomes that need improvement. Avoid vague statements like "poor attitude" or "lack of engagement." Instead, use concrete examples:
- "Submitted four out of six weekly reports late over the past month."
- "Customer satisfaction scores averaged 72% against a target of 85%."
- "Missed three client calls without prior notice in the last two weeks."
For global teams, ensure your examples account for time zone differences and cultural communication styles. What seems like poor responsiveness might actually be an employee working different hours to accommodate team needs.
SMART Goals for Improvement
Transform each performance issue into a SMART goal (Specific, Measurable, Achievable, Relevant, Time-bound). This goal-setting framework provides clarity through clear metrics used to measure success and eliminates ambiguity:
- Specific: "Respond to all customer inquiries within 24 business hours."
- Measurable: "Achieve a 90% on-time response rate."
- Achievable: Consider the employee's current workload and capabilities.
- Relevant: Ensure goals align with job responsibilities and company objectives.
- Time-bound: "Demonstrate consistent performance over the next 30 days."
When setting goals for international employees, factor in local holidays, standard working hours, and any infrastructure challenges that might affect performance.
Defined Timeline and Milestones
Establish a clear improvement timeline, typically ranging from 30 to 90 days, depending on the severity of issues and local regulations. Break this period into checkpoints:
- Week 1: Daily check-ins to ensure understanding and provide immediate support
- Week 2-3: Twice-weekly meetings to assess the employee’s progress and adjust strategies
- Week 4+: Weekly reviews with formal progress documentation
Include specific dates for all milestones, accounting for different time zones when scheduling meetings with remote employees.
Consequences and Next Steps
While the goal is improvement, employees must understand the potential consequences if expectations aren’t met. Be transparent but supportive:
"If performance goals aren't met by [date], we may need to consider reassignment to a different role, additional training requirements, or, in severe cases, termination of employment."
Ensure consequences align with local labor laws. Some countries require additional steps like written warnings or union consultation before termination.
Support Resources and Mentoring
A PIP isn't punishment — it's a roadmap to success. Include specific support mechanisms:
- Training opportunities: Link to relevant online courses, schedule shadowing sessions, or provide access to skill-building resources.
- Mentorship: Assign a high-performing colleague to provide guidance and best practices.
- Regular feedback: Schedule consistent one-on-ones to discuss progress, challenges, and adjustments.
- Tools and resources: Ensure employees have access to any necessary software or equipment they need to succeed.
Consider time zone-friendly mentoring arrangements and culturally appropriate training materials for global teams.
Documentation and Signatures
Include sections for:
- Employee acknowledgment of receiving the PIP
- Agreement to work toward stated goals
- Understanding of potential consequences
- Signatures from employee, manager, and HR representative
- Date of implementation
Some countries require PIPs in local languages or specific formatting. Always verify local requirements before finalizing documentation.
Other Considerations When Creating a PIP
Make It Collaborative
Position the PIP as a growth opportunity rather than disciplinary action. During the initial meeting:
- Ask employees to self-assess their performance challenges
- Invite suggestions for improvement strategies
- Discuss what type of support would be most helpful
- Collaborate on realistic timelines
Employees who participate in creating their PIP often feel more invested in achieving success. They might suggest innovative solutions you hadn't considered, like adjusting their schedule to avoid distractions or partnering with a colleague for accountability.
Cultural Sensitivity in Global PIPs
Different cultures perceive feedback and performance management differently:
- High-context cultures (Japan, South Korea) may require more indirect communication.
- Direct cultures (Germany, Netherlands) often prefer straightforward feedback.
- Collective cultures (Latin America, some Asian regions) might benefit from team-based improvement strategies.
Adapt your communication style while maintaining clear expectations and documentation standards.
Focus on Behaviors, Not Personality
Keep feedback objective and job-related. Instead of "You need to be more proactive," try "Initiate weekly project updates without prompting." This approach reduces defensiveness and provides clear action items.
Regular Check-ins and Adjustments
PIPs aren't set-and-forget documents. Schedule regular reviews to:
- Celebrate progress and small wins
- Identify new obstacles
- Adjust goals if circumstances change
- Provide ongoing constructive feedback
Document all meetings and progress updates to maintain a clear record of the improvement process.
Hire and Manage Your Global Team With RemoFirst
Managing performance across international borders adds layers of complexity to an already challenging process. RemoFirst helps companies employ and manage talent in 185+ countries, ensuring your HR processes comply with local regulations while maintaining global consistency.
As an Employer of Record, RemoFirst handles the full employee lifecycle — from sending laptops to new hires during onboarding to managing the sensitive offboarding process when employment ends. We ensure your performance management practices align with local labor laws, reducing legal risks while you focus on helping employees succeed.
Our platform streamlines global payroll, maintains compliance with employment regulations, and provides expert guidance on country-specific requirements for performance management. Whether you're implementing PIPs in São Paulo or conducting performance reviews in Singapore, RemoFirst ensures you're following best practices and legal requirements.
Ready to build a high-performing global team with confidence? Schedule a demo today to see how RemoFirst can transform your international workforce management.
.png)
.png)
