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by jasode
1184 days ago
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>You typically need to give the under-performing employee at least a chance to improve and meet the required standard - otherwise the hiring company will be leaving themselves open to a wrongful dismissal suit. In the USA where most states are "at will" employment, a "PIP" (Performance Improvement Plan) or providing multiple chances for an employee to become better isn't required by law: https://www.google.com/search?q=employee+%22performance+impr... That said, some companies in some industries add a PIP as a social norm rather than a requirement of law. E.g., An underperforming programmer might be put on a PIP. However, in more cutthroat industries... a new car salesman who isn't selling the expected quota of cars or a hedge fund associate who lost several million on a bad stock pick are often fired immediately without any PIP. |
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I suspect they often do the PIP as legal protection, documentation they can produce later if needed. Even in an "at-will" environment, employees can sue for wrongful termination.