At Barton Creek Technologies, Anna Chen, the chief human resources officer, faces a dilemma over the company’s performance improvement plan (PIP).
The PIP was introduced as a supportive tool to rehabilitate struggling employees, but it has become perceived as a punitive mechanism. An internal audit revealed that only 15% of employees placed on PIPs complete them, while 60% are terminated and 25% go on stress-related medical leave, often not returning.
Managers admit they lack the training to implement PIPs effectively, and employees describe the plans as stigmatizing and demoralizing. Chen is torn between reforming the program into a mentorship-based system or leaving it untouched.
Chen leaned back in her chair, rubbing her temples as she reviewed the latest HR reports.
Author's summary: CHRO Anna Chen faces a dilemma over the company's performance improvement plan.