In a recent article, the Wall Street Journal argued that the Performance Improvement Plan (PIP) is “the most hated way of firing someone,” and yet, its popularity is rising. While PIPs are not perfect, labeling them as the “worst” way to address underperformance is a bit of a reach.
Here’s the truth: when done right, a PIP can be a constructive tool. A properly done PIP should outline performance gaps, offer a GENUINE opportunity for improvement, and create a valuable written record for employers.
Look, I get it, most people view the PIP as the pre-cursor to an inevitable termination. A lot of times that’s correct. However, doing away with the PIP creates a problem for employers. In defending termination cases, employers have an uphill battle if there is no written record of performance deficiencies prior to termination.
🔍 Why PIPs Matter
PIPs are supposed to ensure that employees aren’t blindsided. The problem, of course, is that many employees are blindsided by the PIP itself. Employers should work to ensure that employees are getting feedback, preferably in writing, to alleviate surprise.
Additionally, employment lawsuits often hinge on whether an employer gave the employee a fair opportunity to succeed. A well-crafted PIP documents this effort.
📋 5 Keys to an Effective PIP
1️⃣ Be Specific: Identify precise incidents of underperformance. No vague criticisms.
2️⃣ Set Clear Goals and Provide Time: Outline exactly what improvement looks like with measurable benchmarks that can be achieved in a fair timeline. A PIP where an employee can’t accomplish the benchmarks is not helpful, and will come back to haunt an employer in litigations.
3️⃣ State Consequences: Be upfront about what happens if goals aren’t met, including potential termination.
4️⃣ Get Signatures: Ensure the employee acknowledges receipt, even if they disagree.
5️⃣ Schedule Check-Ins: Provide ongoing feedback and document progress throughout the process.
What are your thoughts on the PIP? Useful tool or 🦖?