PIPs

Intermediate 👥 Human Resources

Definition

Performance Improvement Plan—often the final step before termination disguised as developmental support. Plural form emphasizes that these are being distributed liberally, usually during reorganizations.

Example Usage

Management started issuing PIPs to half the team, which is HR code for 'we're building documentation to fire you legally.'

Origin

Formalized in the 1980s-90s as companies sought to document performance issues for legal protection

Fun Fact

Studies suggest fewer than 5% of employees placed on PIPs actually improve and remain with the company, making it essentially a bureaucratic firing process.

Source: Performance management and employment termination terminology

Related Terms