I'm in sales, but this may apply to other departments too. If you get put on a PIP, and then do not hit your number or satisfy the PIP requirements and are let go, do you still get a severance package?
10 replies (most recent on top)
Actually, I think the PIP severance depends on position and org. I know someone who got almost the regular severance package (part of bonus included) as an alternative to taking the PIP.
The PIP severance package is only 2 weeks though.
Former manager here. A PIP is there to manage you out of the business
Take the severance and run.
They say do the pip or leave with a severance now. Once you complete a pip the verbiage says, if you ever drop below attainment again they can fire you for any reason. Take the severance not the pip.
@jon+1vgWTzXm genuine question, aren't sales PIPs mostly based on attainment? What's the point in lawyering up when they can concretely show inadequate performance?
Standard practice for about a year that you get ‘an offer’ parallel to the pip. It’s like severance but the calculations are only based on your basic (excludes your sales bonus portion).
The calculation/cap varies depending on what country you are working in.
I understand that when you are formally put on a pip, HR are in the room and can offer a confidential package. Its not full severance but probably 3 or so months. UK example.
So you can choose to try and turn things around in your PIP (which can be done if its being done properly).
The whole point of a PIP is to manage you out of the business without paying a severance package. It’s disguised as job performance when in reality it’s we need to reduce headcount and we don’t want to pay out. Rarely are PIPs truly performance based. If you’re in sales and you are faced with a PIP, I would lawyer up.
It su-ks when your number gets jacked up to an unattainable goal and then you get another kick in the pants when they fire you.
Probably not. PIP implies terminated for lack of job performance, not a layoff.