If, after this conversation, the employee is still missing the mark, it may be time for a more impactful approach. One commonly used tactic is the performance improvement plan (PIP), a formal agreement outlining the employee's goals and what he or she can do to meet them more effectively. Not all organizations use PIPs, but those that do often use them as a wakeup call for the underperforming team member: Continued failure to live up to expectations after the PIP could result in termination.