HR News & Trends

Weekly Wrap: The Dirty Little Secret of Performance Improvement Plans

PIP

There are three words that no employee (and most managers) ever want to hear, words that will frighten the bejesus out of anyone who encounters them.

Performance improvement plan, or PIP for short.

If you work in talent management or HR, you surely have had to deal with them on a few occasions — maybe more than you care to admit — but I’ll bet that you always tried avoid them whenever possible, sort of in the same way you would try to avoid a root canal.

Yes, performance improvement plans have that impact on people.

PIPs aren’t about improving performance

For the uninitiated, performance improvement plans are a program that you put an employee on so you can closely monitor their work because, well, somebody, somewhere has determined that they aren’t cutting it and need remedial help.

But in my experience, 99 percent of the time a performance improvement plan isn’t about helping a worker improve — it’s about gathering additional evidence and setting up the framework to boot them out the door.

Here’s the dirty little secret about PIPs: not only do they not work, but they are rarely about improving anyone’s performance.

Here’s what performance improvement plans are really about: providing cover and documentation (if needed) to help get rid of an employee that someone in the management chain of command wants to move out. They’re a CYA exercise, a way for management to claim they did all they could to help the employee in question, while at the same time sending a message to the person that their next step is probably out the door

I’ve rarely seen an employee come back and be successful after being put on a performance improvement plan, although the one time I saw it happen, it was an unexpected and rewarding event that I still consider one of my greatest managerial accomplishments, ever.

The PIP onslaught at Reuters

Yes, PIPs are bad news, and every manager and employee knows it. That’s why this little exercise going on over at the financial news service Reuters is so instructive.

A Reuters journalist, “who asks not to be named,” wrote to Jim Romensesko’s popular media website this week and said:

Reuters management has launched a push to supposedly help selected reporters improve their job performance through a legalistic process known as a Performance Improvement Plan (PIP). Reporters who are deemed to be laggards are handed a document that warns they could face termination if they don’t up their game, and given 30 days to turn things around.

So far, the process has forced out two respected journalists, and we fear more are on their way out the door. 29 reporters (out of a U.S. Guild-represented pool of 460) in all have been targeted.”

Sounds like a classic PIP to me. There are some other fairly major issues with this one at Reuters that are detailed in the post over at Romenesko.com, but the bottom line is the same: it’s a program designed to get rid of people cloaked in the mantle of helping employees “improve.”

They’re really “close to evil”

Think I’m in the minority here with my jaded and cynical view? Well, get a load of what employment attorney Alan Sklover said about performance improvement plans in this blog post:

Whenever a client or blog reader tells me he or she has been placed on a so-called “Performance Improvement Plan,” or “PIP,” I worry for them. In over 25 years of counseling and representing employees, I can count on one hand the number who have remained employed at the conclusion of a “PIP” . . . unless they’ve stood up for themselves by challenging the PIP.

The concept of helping someone put together a plan to improve their workplace performance is wonderful. However, in 95% of the times I’ve seen PIP’s used, what’s really going on is close to evil: it is nothing but a “paper trail” that looks objective in order to justify firing an employee who everyone knows is a good employee.

Almost always PIP’s involve giving employees objectives that are so vague and subjective no one can really tell if the objectives have been met. (“Poor communication” sounds like one of those.) Often PIP’s involve requiring the employee to accomplish something they have no control over, or don’t have the resources to accomplish. Frequently deadlines are set that are 200% unrealistic.”

You know the PIP is a badly flawed process when an employment attorney calls them “evil.” Is that what is going on with the PIPs over at Reuters? Well, it doesn’t seem like a process designed to get the best out of people, and that in itself should give you a clue to what’s going on.

I’ll die happy if I never have to deal with a performance improvement plan again. They’re bad news all around, and I’d love to hear if you have any experience with them that support my experience, or, show me that I’m all wet.

Health care costs to jump 7.5% in 2013

Of course, there’s a lot more going on this week than the PIP debate. Here are some HR and workplace-related items you may have missed. This is TLNT’s weekly round-up of news, trends, and insights from the world of talent management. I do it so you don’t have to.

  • Who has it worse on the job front? Who has the bigger struggle to find and keep work — young, green Millennials, or aging, veteran Boomers? Bloomberg Businessweek recently wrote that, “Generations are fighting each other from within for work. A 24-year-old is more likely to compete with a peer for a job than with a 60-year-old. But in terms of who has it worse, old or young workers, it’s worth measuring the differences between the two age groups to see which is more in need of help.”
  • Beginning of the end for generous public worker pensions? There is a fight going on over public worker pensions in San Jose, California, and voters are going to get to decide which way they should go. According to the San Jose Mercury News, “Should San Jose’s Measure B pass, as Mayor Chuck Reed and the business and taxpayer groups behind it expect, it would be a key test of a city’s authority to reduce future pension costs that exceed expectations and revenues, despite earlier promises to employees. Government employee unions maintain that the measure is illegal, unfair and unnecessary. ”It will have nationwide implications on pension obligations and what we can and can’t do when we get underwater,” said Marcia Fritz, a Sacramento-area accountant and president of the California Foundation for Fiscal Responsibility.”
  • Health care costs may jump 7.5% in 2013. This story from Kaiser Health News probably tells you what you have already suspected: health care costs are going to take another good jump next year — 7.5 percent. And, the “projection is more than three times that of the expected rates for inflation and economic growth, according to PricewaterhouseCoopers. Still, it’s the fourth year in which the cost increase is less than 8 percent.”
  • Cursing as a workforce management strategy. Is it cool — or appropriate — to swear on the job? According to The Wall Street Journal, “Generally, cursing at work can damn your career. Managers who cuss appear unprofessional and out of control, executive coaches and recruiters say. But that’s not always the case. Deployed at the right moment and in the right setting, a well-chosen curse word can motivate a team, dissolve tension or win over an audience.”
John Hollon is Vice President for Editorial of TLNT.com, and the former Editor of Workforce Management magazine and workforce.com. An award-winning journalist, he has written extensively about HR, talent management, and smart business and people practices. Contact him at john@tlnt.com, and follow him on Twitter at http://twitter.com/johnhollon
  • HappyNow

    Wow, John, this article is spot-on. I’m not an employer; I was on the receiving end of the PIP. And yes, I may be a bit biased since I was the employee here, but I felt like the PIP was basically designed to boot me out as quickly as possible. I do admit my quality of work had been slipping, but the PIP is not really designed to help you ‘improve.’ I’ll never forget one of the mandates of the PIP was: “You can’t make ANY mistakes.” No kidding. Even something small that could be easily corrected would be held against me. Suffice it to say, I resigned and found a much better position 3 months later elsewhere. Honestly, I was unhappy and unfulfilled where I was and the PIP just forced me out of a bad situation into something wonderful and fulfilling now. That’s the only good part I can say about it. Great article!

    • Tcolson82

      I am glad to see someone of the receiving end of a PIP respond. I just got put on one, had no idea it was coming. I have only been with the company for 5 months. Have had several conversations with my boss to which were complimentary of how things have changed for the better since I got on board. My boss went on maternity leave 3 weeks ago and voila…I am now on a PIP. The reasons were due to zero training on part of my job that is suppose to be happening, of course there was not a timeline for that, I was suppose to be a mind reader I guess. I am now job hunting while I am on a PIP and hopefully I will be able to find a great employer once again!

      • Guest

        I work for a despicable boss who gave me a totally unwarranted negative performance evaluation (my first one with this company), to which I have to respond by writing my goals for the upcoming year. Well one of my (unwritten) goals is to get them to let me go so I can get unemployment benefits and move to another state and pursue work there (oh and to get the heck out of that awful industry which shall remain nameless!).

  • Kris Greening

         I’ve been in HR management for nearly 20 years at three different large organizations.  We’ve had to use PIP’s on the rare occasion at all three firms.  You can’t make the blanket statement that all companies that use PIP’s are evil, just building documentation to get someone out the door.  All the organizations I’ve worked in HR for that have used PIP’s have done so to clearly get the employee’s attention that their performance has put them on thin ice, and to identify specific things that must be improved.  The PIP’s I’ve helped to write are never vague, and clearly spell out exactly what needs to be improved (with specific examples) and when.  There are also follow up meetings scheduled each one to two weeks to aid in the improvement process.  The meetings with the employee are always done as a method to do some intense coaching to help them get back on track. 
         There are two kinds of employees that may go through this process.  One kind quit working for the company a long time ago, but continues to show up for the paycheck.  Usually this employee does not care about their performance, and are looking for a way out without actually resigning.  The PIP won’t work with them because they don’t want to work there anymore anyway, or think their performance is fine and just won’t admit it really isn’t.  These usually end up in termination.   I find this is most typical when a PIP is used.  (Not the big bad company evily pushing great employees out the door, but helping poor performers make the decision to leave since they can’t/won’t.) The other kind of employee doesn’t realize that their performance has been declining, maybe it has happened slowly.  Or, they are in the wrong position and just can’t perform the responsibilities well.  The PIP will give them the needed wake-up call to get back on track, or they will realize they are in over their head and step down.
         Organizations must have a good way to help employees perform, and a PIP, although usually a last resort, is an excellent way.  You’re right, it does help build the necessary documentation that the organization has tried everything to help the employee succeed, and if the employee doesn’t succeed, is the documentation outlining the problems and issues the employee was having.  Organizations in today’s world can’t afford to keep dead weight, or worse, someone who is making mistakes that cost the organization too much.  If someone isn’t cutting it, and won’t make the decision themselves to go, a PIP is a good tool to use.
         In most cases, those former employees who had a PIP and were terminated as a result, and are whining about it are those that should have already resigned on their own.  Rarely will a company want to terminate a good employee as it’s too expensive all the way around – both legally if there is not a good reason to terminate, and in hiring and training a replacement.  Again, usually if the employee has a PIP, they are an under, or poor performer.

  • Steve Hunt

    Good article John.  This is how I’ve often seen PIPs used, although not always.  Like most things related to performance management or management in general, it is important not to generalize bad practices used by some companies to similar processes that may be used much more effectively in other organizations.  That said, I think one of the problems with PIPs is not what they are used for, but how they are presented.  Specifically, they should probablly not be called Performance Improvement Plans, but something like “Performance Notices”. 

    From a fairness perspective (and probably a legal perspective in most states), I believe companies should give employees formal notice in advance of letting them go for poor performance.  This seems better than just meeting the employee at the start of the day with “Good morning, your fired now get your stuff and leave.”   This notice should ideally be far enough in advance so the person could potentially turn their performance around if they are able and willing.  A month seems like the minimum time for this in most jobs, but even a month is better than nothing.  Although in most cases by the time you get to the PIP state the plane is usually spiralling out of control toward an inevitable crash.

    The way PIP forms are used in many companies does provide this “advanced warning/last notice to save your job” kind of function.  But if we were candid about how these are used, they wouldn’t be called “Performance Improvement Plans”.   They’d be called “Thngs you must change about your behavior and results in the next 30 days or you will be fired” plans.   But TYCAYBARITN3DOYWBF is a lot harder to write and remember than PIP,

    Steve 

  • HAK

    I, too, have been in HR for management for many years (25+) and fully agree with Kris’ comments. I work for a large manufacturing company and we’ve used PIPs to exit people from the organization who have already checked out but won’t leave on their own. We’ve also used the PIP process to help employees improve and get back up-to-speed when their performance was lacking. The process is only as good as the people that implement it….if they have bad  intentions and they want to use the process for the wrong reasons, it’s up to HR to assist them in finding another tool that’s more appropriate (e.g., a separation package).

  • KenSchmitt

    I have to
    say that I am disappointed in the one sided point of view in this article.
    There is no doubt that PIPs are often a ticket out the door as you stated.
    However, I cannot count the number of articles posted about people who are
    “shocked” about being terminated and received no official prior
    warning. Yes, PIPs are usually the last straw before the camel’s back is
    broken. Legally, however, Covering Your A** is necessary. A PIP allows an
    employer to do that. I agree that they can often be written with unclear and
    unachievable goals that are not easily measured; but this is the fault of the
    person writing it, not the program itself. Of course there are people who use
    the PIP to toss out people they don’t like or with whom they don’t work well
    and that is unprofessional no matter what bureaucratic process is employed, but
    negating the relevance of a legally necessary process is not the way to go
    either. Having a lawyer close by has taught me that jumping the conclusion that
    all things “legal” are “evil” is inaccurate and unfairly
    stereotyping. In my experience, the number of people who claim to have been
    unaware of poor performance or not meeting expectations when, in fact, they are
    clearly aware after countless warnings and other HR measures far outweighs the
    number of people who use this “evil” plan to toss out undesirables.
    Employers must also be protected for the litigious world we live in.

    Both sides
    need to be held responsible in the cases of performance review and
    expectations. Employers MUST be clear about the expectations they have of their
    employees. If there are problems along the way there must be a system in place
    to address and rectify them. On the employee side, if you are unsure of what
    you are expected to accomplish, how it is measured or where you are falling
    short of expectation it is imperative that further discussion begin. And if you
    are unable to meet the expectations or you feel they are not “what you
    signed on for” or are unreasonable, it is within your right and obligation
    to seek employment elsewhere.

    Both sides
    need to be professional and responsible. I’m sure many will scoff at that
    sentiment and state example after example of employers who exploit employees
    and simply implement COYA policies; but just because personal responsibility
    isn’t always the norm doesn’t mean it shouldn’t be the goal for which we
    strive.

    Ken C.
    Schmitt

    http://www.turningpointsearch.net

  • Buslais

    As a manager I’ve used the PIP four times – to improve punctuality, leadership, thoroughness and accuracy – all had specific targets. Three employees made it through the PIP after reaching their targets, one employee went on long term sick then quit before the PIP could start. I do use the tool to give people a shove – but not towards the door, but towards improving themselves to do the job they are paid to do properly.  It is too general to say they are evil and are used just to get rid of people. In my experience that is not the case.

    • ANON

      No it’s evil, its a written documented plan which involves HR. A better and more effective plan is just causally giving a list to an employee to improve their performance. Think TWICE before giving another human being an evil plan.

    • bob

      Bully.

  • Plhbrit

    My night job has a problem I’m told with 2 employees one a manager and the other a team lead, the manager told me to rectify that they are going to put the whole department on PIP. She said they don’t feel they can do anything else.. NOTE, I’m not in management at this job so # 1 she should not be talking to me about this anyway… But can they really do that?

  • Disheartend

    I am 53 years old, took a position with a new company about 4 1/2 months ago. They sought me out and made me an excellent offer. One major thing I always ask on an interview is “Do you have a training plan for me”. The woman I work for is 31 years old and has never had any Management training. I was given the answer “yes, we plan to have you mentor with your co-worker for 6 months or so”. My co-worker spent maybe a week and half with me. Then I was on my own. I made a complaint to the General manager, as one day one of the managers got hostile with me and told me I should know all this stuff. I responded with “if I had some proper training I might know it”.. He responded with, “this is an ON THE JOB TRAINING PLACE and perhaps this is not the right place for you. Being in tears, went to the General Manager, he was very appreciative of me telling him what was going on and said, he would handle it. He said I am behind you 100%. Since the day I made the complaint, the training issue got worse, they have overloaded me, was told not to make any plans after work because if they need me to stay I need to stay as late as I need to. Have been forced to cancel doctor appts, etc. I have never been told or been given in writing anything negative about my work. Matter of fact, I have email trails telling me what good job I’m doing. I have spoken to HR about the training issue and was told I am just going to have to muddle through it on my own as no one as time to train me and quit complaining about not getting training. Being I have been in Management position in my career life, HR told me that I should be helping my boss become a better manager….”HELLO”??????

    So, I could go on and on…..BUT here’s the JOLT……Friday before thanksgiving, and

    taking vacation the next week. My boss calls me in her office and gives me a PIP!!!

    I was so offended and taken back, because it came from nowhere. It had expectations on it that would make it impossible for me to accomplish being, I’m still learning. One was, I am to compile a training manual for our department (ya, me the new person put a training manual together, the one who has gotten no training). Also, to clean up their network drive which is HUGE. All this in 30 days. I was in tears and told her I knew what she was doing was setting me up. I went to my therapist on Monday in a total mental breakdown mode. She said I do not want you going back their right now, this is totally unfair, so she filed for STD. which I’m in the process of right now. I also, got some advice from an atty to respond to the PIP in writing, that I disagreed with it and its entirety. At the same time notified them that my doctor has ordered me not to return to work, due to my underlying disability, namely depression. I also, let them know that the harassment hostile work environment and discrimination has exacerbated my condition. I have not heard anything from the company so far. My STD was approved for a short time until we can compile all paperwork from my doctor. ANY SUGGESTIONS ON THIS ISSUE, WHAT IS THE NEXT STEP????? HELP!!!!

  • Jean

    I was put on a PIP once…about 2 hours after I (stupidly) went to HR to discuss my manager harassing me. I guess in some cases it is used for a good reason, but it certainly seems to fit a company’s legal reasons quite well also.

  • http://www.facebook.com/people/Paul-Saddy/100000257772242 Paul Saddy

    For all of you HR folks out there, if you want to leave a paper trail, send an email, schedule a one on one. I’m all for covering your tracks, but the problem with most PIPs is that the majority of individuals are ambushed into these threatening contracts without clearly obtainable objectives, probably after receiving praise for doing such a good job just a week before.

    I received mine last week on the same day another team member was fired and even though it doesn’t matter, my speculation is that my manager received some news from the higher ups that requires some departmental changes that are out of my control (outsourcing certain job functions, budget constraints, etc.). I’m not upset about the fact that I have to leave, what I’m upset about (and mangers please pay attention on how not to handle a PIP) is how my boss handled it. If he would be honest with me, I would consider modifying my schedule, taking on extra responsibilities, taking a paycut even. But instead, he’s trying to make my life as difficult as possible. He gave me three task in the PIP, previously what we were discussing as a year long goal to a promotion, has now become a new 30 day standard to save my job. No one else in the department has, does or will ever be expected to meet the same job functions I’ve been placed on and I’ve been required to take over some of their responsibilities. The funny thing is it is actually attainable for me. I’m fine with looking for a new job, but poor management needs pushback on these issues. If you don’t want work for them, trust me I understand. But until you find a job, make them be specific (even if you already signed the PIP) and save every email (forward it to your personal email if possible). Back management in a corner to answer your PIP questions, and CC the human resources on it. If someone says something like “poor communication” send an email like “in on order to comply with your request, please let me know specifically what would successfully meet the criteria of the PIP.”

    Don’t feel threatened when these come, these are just indications of small inconveniences until you move on to bigger and better things. Sometimes, like in my case, what was meant to protect them may be opening themselves to legal ramifications. I’m currently investigating that now. I don’t want to, I just want to know I have a steady paycheck coming in to provide for my family and my manager just wants to force me out ASAP. If I find a job or they offer me a few months severance while I look, I’ll probably just leave quietly. In the meantime, I’m covering all of my tracks. Lawyer, completing the PIP, paper trail, job search. My family depends on me.

    When I find a new job, I’m going to walk in at the beginning of my workweek, hand in my letter of resignation, and walk out at the beginning of my shift. Any management or HR that considers PIPs should have trouble sleeping at night!

  • Mohil Patel

    Performance Improvement Plan (PIP) is basically formally monitoring an employees work. Before carrying it out, they take you signature. The management may say that they intention is to improvement the employees performance, but when any errors are made within the period of Performance Improvement Plan (PIP) would all be noted down and used against that employee. If it gets worse, the management will set another criteria. If still it does not improve, it would come to point that they will give First formal warning, written warning, disciplinary, final warning and then dismissal or the will make that person resign. Furthermore, the pay rise would not be normal or their will be no pay rise. This is what puts the employee under a lot of pressure as this will be a long procedure.