The first time
When I joined as the head of talent at a logistics company, in March 2015, the company had 50 employees. My role focused on setting HR and recruiting standards, particularly in managing low performers. Consulting with HR leaders from other companies, we learned that organizations either use Performance Improvement Plans (PIPs) or avoid them, instead providing increasing feedback to low performers.
At our organization, we chose the PIP route, initially limiting it to the sales team due to its clear metrics. We informed employees explicitly: “If you don’t hit your quota, this is your last month.” However, during my tenure, everyone placed on a PIP was eventually terminated, leading me to believe that PIPs are often a precursor to termination.
This time, I took a different route
In 2018, as the chief people officer at another organization, we seriously debated PIPs and initially required them before termination to ensure employees were not surprised. However, we found PIPs disingenuous and eventually eliminated them, opting instead for direct terminations with generous severance packages. My experience reinforced that PIPs are seldom about genuine improvement.
It’s only a legal cover
Companies often use PIPs to protect themselves legally rather than to help employees succeed. PIPs serve as documentation to avoid legal backlash from sudden terminations. Therefore, if you’re put on a PIP, it’s prudent to view it as a “Paid Interview Period” rather than a “Performance Improvement Plan.” This mindset shift prepares you for inevitable termination, allowing you to focus on finding a new job. Surviving a PIP doesn’t guarantee future success at the company. Employees on PIPs rarely receive promotions or raises due to the stigma attached. Hence, seeking opportunities elsewhere where you can start afresh is often the best course of action.
In summary, PIPs are typically used as a legal safeguard rather than a tool for employee improvement. If placed on a PIP, redirect your efforts toward finding a new job and starting over at a company where you have a better chance of success.
