Which is better option for an Employer - Performance Improvement Plan or Fire ??

Performance Improvement Plan (PIP) is always better than firing because before firing an employee one need to understand why he/she is not performing according to the company’s objectives or requirements. The factors can be both internal as well as external. External factors basically include factors outside the organization like family related problems, stress, personal life etc. whereas Internal factors mainly include matters within the organization. This occurs mainly when there is rift between employees, or when he/she couldn't complete his task on given time.  Whenever such situation occurs it is important to manage or handle it by understanding what exactly the root cause of non performance of employee is. We need to encourage and motivate them and protect the image of the employee in front of employer.

Performance Improvement Plan is better than firing because the employee can be fair enough at times or else they can file a case against the employer, so it is desirable to have a Performance Improvement Plan.

Firing an employee is only applicable when he/she hampers the ethics of the organization and when they cannot compromise with basic issues in terms of compliance to safety.


Mr. Siddharth Krishna
Head HR - West Region