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Navigating performance issues at work
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Severance or PIP?
Microsoft recently rolled out a new program: people deemed “low performers” are given the option of taking a severance package with 16 weeks of pay, or going on a PIP. But here’s the catch: if they aren’t successful on the PIP, they get nothing.
Before I share a few thoughts, I’m curious which option you’d pick so weigh in on this poll!
Which option would you take? |
I fully expect that we’re going to see more and more companies rolling out options like this. There are a few things going on right now:
Companies know we have a tighter talent market so if someone isn’t performing (or even excelling!), they can likely find someone else who can contribute more.
Companies are focused on talent density and want to increase the level of talent. If they hold formal layoffs, they can’t rehire those roles so they’ll likely continue to focus on exiting those at the bottom (or deemed as being at the bottom since this may be subjective at times).
If you’re given an option like this, some of the questions I would ask include:
Am I still eligible for unemployment if I accept the severance?
Do you see a clear path for me to successfully complete this PIP?
Am I eligible to apply for other roles at this company?
Is the severance package negotiable?
In my experience, PIPs don’t have to be a last resort before firing. In fact, I’ve been at many workplaces where 70%+ of people who go on PIPs remain employed. However, that can vary by company, and at least in the case of Microsoft, it seems clear that they want to see people move on and are trying to incentivize exiting.
So, how might you know things are moving in this direction?
Signs you may be headed for a PIP
I’ve heard many people claim to be surprised by PIPs even though when I listen to them, I hear many indicators that to me, make it clear their employer was moving in this direction. Here are some signs that your employer may be seeing some disconnects in performance:
You receive the same feedback repeatedly. Most employers expect to give feedback once or twice, and then for that problem to be fixed. If your manager is bringing up the same things again and again, this likely means that you’re not applying the feedback effectively and they’re concerned with your performance.
Your manager begins documenting feedback more clearly. This could look like recap messages after your 1:1s outlining what was discussed and next steps, or it could be more follow up. You might see statements like “as discussed, you’ve committed to XYZ” or “today, we discussed feedback on XYZ, and moving forward, we expect to see XYZ”.
HR gets involved. It’s not common for HR to be pulled in to a conversation with an employee; if this happens, it’s a clear signal that your manager wants to ensure there’s proper documentation and whatever feedback is being shared is shared clearly.
Your manager puts you on a coaching plan. While you don’t receive a formal PIP, your manager creates a document with clear expectations outlined and checkpoints and such. Often, this is a final step before a PIP that your manager may be doing at the request of HR to show that they’ve made a concerted effort to help you grow.
You receive anything less than a meeting expectations (or equivalent) rating on a performance review. In most workplaces I’ve worked, these ratings often lead to a PIP.
If you’re noticing these things, there’s a decent chance your manager has some performance concerns and is determining how to proceed.
In my experience, HR requires quite a lot of documentation before allowing a manager to place an employee on a PIP. We have to demonstrate that we’ve given the feedback clearly and what attempts we’ve made to coach and develop the person. The 4 things above are ways that we can do that, and if we still don’t see progress after that, a PIP is often the next step.
So what should you do if you find yourself headed towards a PIP?
First, I’d encourage a direct discussion. Perhaps your manager thinks they’re being clearer than they are, or because the discussions have happened over the course of several months, it doesn’t feel like as a big a deal to you as it does to them. But if you’re seeing some of the signals above, then initiate a direct conversation and ask them to discuss their overall assessment of your performance. This will put them in a position of needing to tell you clearly if they have concerns.
Do your own documentation. After 1:1s, you can recap what was discussed, any next steps, etc. That way, if things do bubble up to HR, you have evidence you can point to as well.
Do some self-reflection. Is the feedback fair? Are these areas you legitimately need to grow? Do you want to make things work at this job? If so, then embrace it and start doing the work to level up your skills. Thank your manager for the feedback, express a commitment to growth, and go above and beyond to prove yourself. I’ve seen people do this and go from being on a PIP to being promoted.
Prepare for a search. Unfortunately, many do see PIPs as a last requirement before terminating someone, and your manager may not truly be committed to helping you grow. Since it’s hard to know, I would mentally prepare myself for a job search - and also make sure you have all your materials together in case it comes to that.
In the News
As of Friday, May 2nd, the de minimus exemption has ended for China and Hong Kong and 145% tariffs have kicked in. I found this great article on substack explaining the implications. The headlines for me: the tariffs are based on the country of origin so even if you order something from a country based in Europe for example, if the product was manufactured in China or Hong Kong, you’re going to be hit with 145% in fees. And of course any companies in the US important from China are paying these tariffs so we’ll see that reflected in our costs as well.
🙋Answering Your Questions🙋
Each week, I’ll answer one (or more!) of your questions in this section. You can submit your questions here.
I'm a new mom and have been out of the workforce for the past 10 months. I'm worried that I'm getting passed on opportunities for this gap in work experience on my resume. Do you think it would be beneficial to add in a line about what I've been up to for the past 10 months?
Congratulations! I think in this case, noting “career break” or “parental leave” would be fine and help clarify what you’ve been up to.
I was recently made redundant after 14 years with the same company. I am looking for more senior/executive roles. Do you recommend any specific sites that target executive positions?
I’m sorry to hear that! I hope they gave you a severance package worthy of the commitment you’ve shown them. A few options:
Succeed Smart is a free platform that matches employers with senior talent (Director+). They work with talent to put together your materials and match you with relevant roles.
Above Board is a free platform to help make connections with executive talent (VP+) and employers.
Whispered is a paid community for senior leadership/executive roles (Sr. Director+), and they provide tools for navigating your career search and share opportunities that aren’t posted as publicly.
If your goal is to access opportunities and get in front of hiring teams, the first two options should help. If you’re looking for more community and coaching, the third might be useful though I generally think people can have a successful search without spending money.
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