Hasnain says:

"HR veteran Steve Cadigan says his thinking—that PIPS are almost always a bad idea—was shaped when he worked at Cisco early in his career. “We did a five-year lookback at every PIP and found that 90% of people who were placed on a formal PIP, whether or not they survived it, left within a year of that warning. Which to me suggests there’s a fundamental break in the trust of that relationship,” says Cadigan, who went on to be the HR chief at LinkedIn and now advises companies on HR strategy.

So he sets out to avoid them. “We give you two envelopes,” Cadigan says. The first is a PIP. The second offers generous severance with a separation agreement and Cobra, or continued health insurance. “Seventy-five percent of the time people take option two. So we circumvent the whole PIP process and just say, for whatever reason it’s not working out.”

This approach is increasingly popular, particularly in tech. It’s used in some form, and sometimes on a case-by-case basis, at companies including Amazon and Meta."

Posted on 2024-11-30T05:53:36+0000