If there’s one thing I’ve learned about large, corporate customers is that trying to get anything done with their employees between 15 December and 15 January is impossible. Nearly everyone’s on vacation. And, c’mon, let’s all agree: the ones who aren’t on vacation aren’t working very hard.
You can’t blame them. They’re getting their paychecks. They’ve earned their four weeks of time off. Most small businesses can’t do this. We have cashflow challenges. We don’t have the luxury to sit back and collect our pay. We need to get contracts signed, bills paid and products approved and that’s made infinitely more difficult when our corporate counterparts are still drinking eggnog and watching Hallmark movies instead of being at work. But if you work for a big corporation, you better be careful. And don’t say you haven’t been warned.
There’s been a significant rise in Pips, and even though it’s the “most hated” way to fire an employee it’s still the most popular one. A Pip is short for a performance improvement plan, which is nothing more than a roadmap of steps and objectives that aims to turn an underperforming employee into a better worker. According to a recent Wall Street Journal report, 43.6 workers out of every 1,000 involved were in “formal performance procedures” in 2023, up from 33.4 in 2020. That’s more than a 30% increase in just a few years.
This should concern the typical corporate employee. Pips are usually nothing more than a precursor for termination. If you’re being asked to participate in a Pip it means that your job is in serious jeopardy. Are Pips successful? Not really, according to a number of studies. They’re of more use to the employer as a way to make sure they’ve got the right documentation necessary so that they can legally terminate an employee.
Pips are clearly on the rise. And that’s a warning sign. Not for the economy. Unemployment remains low. Business confidence has rebounded. Surveys are showing that many employers plan to increase their hiring next year. But companies are always under pressure to reduce costs and grow profits. They’re investing heavily in technologies that replace people. They’re always on the lookout to replace underperforming people with better people. And, if Pips are one indication, there seems to be a rising number of those underperforming people to replace.
As a business owner, I love my employees. But let’s be real: they’re an investment and like any investment they need to have payback. Is this person minimizing my expenses? Generating more revenues? Creating more value?
And there are intangible things too, like being grateful for working for a company that offers incredible benefits and provides the ability to take weeks off during the holidays when the rest of the world is battling away at work. Or picking up responsibilities that help your boss and your team even though it’s not exactly in your job description. Or, instead of coming up with 50 reasons why something can’t be done, thinking up 10 ways to get it done. Or simply being pleasant and happy and positive and supportive. All of this contributes to an employee’s value.
No one is irreplaceable. And these days it seems like workers who are not hitting their performance marks are increasingly likely to face a Pip. And we all know what that really means.
