Got to cull the bottom 10% every year! I wonder how many people rejoin at a later point of their career, otherwise surely these sorts of practices would be unsustainable (without hiring lots of labour from abroad?).
Its purpose is to reduce legal risks and financial costs. The legal risk is in case ex employee claims some type of harassment or discrimination.
The financial costs is to keep unemployment insurance premiums lower. The more unemployment benefits your ex employees receive, the higher the unemployment insurance premiums. Ex employees are not eligible for unemployment benefits if they are terminated for cause.
Ideally, a PIP in a white collar setting is also for the benefit of the employer about to be terminated to serve as advance notice that they should start looking for other employment. It benefits the employer because if they can start planning and looking for work elsewhere earlier.
Ideally, they do and resign from their position, and the employer benefits here also since there is reduced risk of litigation from a resigned employee, and the ex employee is ineligible for unemployment benefits due to resigning, so the employer saves money on unemployment insurance premiums.
I wonder how they do this outside of US. In Australia we have a regulatory body named Fair Work Commission where you can take your case if you think you were unlawfully fired.
If your employer wants to fire you, then they’re going to fire you. The PIP is a miserable process, but there’s not typically a nice way to be fired. The PIP gives you a decent opportunity to make other plans at least.
Exactly, if I were given PIP then first thing I start doing is using company time to upskill myself.
I haven't seen many cases but PIP were 100% leading to firing. Also my corpo didn't respond to work reference bar HR letter stating you worked for them.
So in my experience PIP is a sentence but you will face no consequence for not working.
(In two cases the PIP were purely because manager didn't like the guy and just wanted them gone)
