In order to effectively address poor or underperforming employees, a company must have a comprehensive Performance Improvement Plan (PIP) in place. Without a PIP in place, any purported action taken on the employees would simply be a sham and naturally will not be effective. PIP involves documenting problems and communicating those problems to employees. The effectiveness of a PIP relies heavily on documentation, which could deter frivolous lawsuits and complaints by employees against the company. Recent Court decisions show that non-compliance to the right approach of dealing with nonperformer have resulted in costly financial consequences to employers.