Should You Use A Performance Improvement Plan?

A Performance Improvement Plan ("PIP") is a long-standing HR tool for managing underperforming employees. Employers often use a PIP to document deficiencies and outline specific goals the underperforming employee must reach within a specific timeframe.

While PIPs sound good in theory, they have recently come under criticism from employees, HR professionals, and even employment lawyers. A primary criticism is that PIPs are used as a check-the-box step before an employee is fired. Employees often view them as a sign their job is already lost, leading to disengagement rather than improvement. Because of this, they are often viewed as a cost-cutting measure used in an effort to get employees to resign rather than go through a PIP.