A Performance Improvement Plan (PIP) is a formal document designed to address and improve an employee's performance issues. It outlines specific performance deficiencies, sets clear goals, and provides a structured timeline for improvement. The PIP typically includes measurable objectives and the support available to the employee, such as training or resources. Tools like Effy AI can enhance the PIP process by providing data-driven insights and tracking progress, ensuring that employees receive timely feedback and support throughout their improvement journey.