Ditch PIPs
Performance Improvement Plans (PIPs) have become a standard tool for addressing underperformance. However, in practice, they are not a genuine tool for employee growth, but merely documentation for termination. Applied this way, they fail to foster improvement and instead create a sense of mistrust between managers and employees.
A colleague of mine whose practice is advising clients on employment law and HR matters shared that when a client says they put an employee on a PIP she immediately responds, “so you are firing them” and the answer is always yes. You do not need a PIP to properly document the need to terminate an employee.
It’s time to ditch PIPs and prepare leaders to develop employees and demonstrate accountability through open conversations, development-focused tools, and consistent, courageous dialogue.
The Problem with PIPs
While PIPs may seem like a structured way to improve performance, they are rarely used effectively. Too often, they serve as a warning signal for employees that termination is imminent. Rather than helping employees grow, the PIP process can feel punitive, discouraging engagement and leaving employees focused on survival rather than growth.
Even when implemented with good intentions, PIPs require significant effort from managers. A proper PIP involves identifying specific performance gaps, setting clear objectives, providing continuous feedback, and documenting each step of the process. Managers must fully invest in the employee involved and when they do not his process defaults to using the PIP as a formality on the way to dismissal. This not only wastes time but also damages trust within the team.
If the manager’s goal is to part ways with the employee, it’s more respectful to manage the situation honestly and directly rather than going through the motions of a performance improvement plan.
Better Options
Instead of relying on PIPs, managers should lean into ongoing, constructive conversations about performance. The key to effective performance management is two-way dialogue including more positive feedback than negative. Managers should give at least four positive comments for every one constructive comment. When constructive feedback is necessary, address the issue early before it becomes critical. Those discussions can be easily documented with a summary email sent the same day. Managers must develop the courage to provide honest feedback, even when it’s uncomfortable. These conversations, when handled well, can prevent the need for formal intervention.
When the goal is true development, an Individual Development Plan (IDP) offers far more support for employees. Unlike a PIP, which feels punitive, an IDP focuses on identifying and building strengths, addressing growth areas, setting long-term goals, and accountability for positive action. With regular meetings to discuss progress, challenges, and opportunities, the IDP fosters an environment of mutual accountability and trust. This approach aligns better with developing employees and strengthening their contributions to the team.
When termination is necessary, it’s better to handle it transparently and respectfully, without the pretense of a PIP. This approach preserves dignity and trust, both with the employee and within the broader team. Managers who engage early, listen actively, and provide clear feedback build stronger relationships and create a culture of growth and accountability.