Do PIPs Help or Harm? Savvy HR Shortcuts & The Workplace Lying Crisis - Jan 31, 2025

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Hello, HR Leaders! Surviving the Friday frenzy? Let’s dive into Performance Improvement Plans (PIPs) — are they really helpful, or just a setup for failure… Plus, catch up on the latest HR news and insights below.

On the agenda: 

🤔 PIPs Help or Harm? The real intentions of employee improvement plans.

💎 Savvy HR Shortcuts: With this 150+ template resource.

🚩 Workplace Lying Crisis: Studies show the rise in workplace fraud.

💝 Weekly Freebie: A creative Team-Building Activity Guide.

SPOTLIGHT

PIPs: Are They Helping or Hurting Employees?

Performance Improvement Plans (PIPs) are designed to help underperforming employees meet specific goals within a set timeframe, typically 30 to 90 days. However, recent trends suggest that PIPs are increasingly being used as a method to manage employees out of organizations without formal layoffs.

On The Rise: According to a report by The Wall Street Journal, the use of PIPs has risen from 33.4 per 1,000 employees in 2020 to 43.6 in 2023. This increase coincides with economic shifts and elevated performance expectations in various industries. Critics argue that PIPs often serve as a safeguard against wrongful termination lawsuits, rather than genuine tools for employee development.

Do PIPs Help Employees? Employees placed on PIPs frequently perceive them as precursors to termination. Anecdotal evidence suggests that a significant number of employees placed on PIPs either resign or are terminated within a few months!

The Alternative: While PIPs can provide a structured approach to employee improvement, their effectiveness is debated. Some experts advocate for alternative methods, such as direct communication, coaching, or offering severance packages, to address employee issues more transparently and humanely.

Ethical or Exploitative? As HR professionals, it's crucial to assess whether PIPs are being utilized as genuine development tools or as indirect methods of workforce reduction. Implementing PIPs with transparency and support can help ensure they serve their intended purpose of fostering employee growth.

For a deeper understanding of managing underperforming employees, read this insightful article:

FRIDAY’S STEAL

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NEWS THAT MATTERS

1️⃣ Workplace Lying at Crisis Levels: Detection Needed

According to recent reports, workplace lying has reached a crisis level. Find out why HR must implement deception detection to safeguard company integrity and trust. [HR Executive]

2️⃣ AI Can Be More Compassionate Than Humans

Artificial intelligence may play a larger role in employee support, with recent research showing it can outperform humans – even trained professionals – in delivering compassionate and empathetic communication. [CHRR]

3️⃣ Shark Tank Star Promotes 'Loud Quitting'

The practice of ‘loud quitting’ can be a good thing if employees are under a toxic manager in a toxic work environment, according to the star of TV series Shark Tank. [HRD]

4️⃣ Startup Culture Puts More Demands on HR Leaders

The unique challenge of managing HR in startups is more apparent than ever in the current business environment, where employee well-being ranks high on just about every employer’s stated list of priorities. [WorkLife]

5️⃣ 2 in 3 CEOs Expect Employee Numbers to Increase

Small and midsize business leaders are optimistic heading into 2025. Read about the key trends and challenges HR should be prepared for in the coming year. [HR Dive]

WEEKLY FREEBIE

A Team-Building Activity Guide

Unlock the secrets to stronger teamwork with this freebie Team-Building Activity Guide — on the house for the HRAddict community. 😉 Included is five creative exercises along with instructions for each so you can foster collaboration and camaraderie in your workplace. Try them out and let us know how it goes!

BREAKROOM

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Created with care by the HRAddict team.