When a PIP Signals the End: Two Stories, One Lesson
Performance Improvement Plans (PIPs) are often positioned as tools to help employees improve their performance and succeed in their roles. However, in some workplaces, they’re used in bad faith—as a formal process to create a paper trail that justifies termination. This is especially common when a strained relationship between an employee and their manager is the underlying issue. For employees placed on a PIP in bad faith, it’s important to recognize the reality of the situation and take proactive steps to protect your future.
A Tale of Two Clients: Navigating PIPs in Bad Faith
Recently, two clients came to me for career coaching after being placed on PIPs. Both were in strikingly similar situations: they had been strong performers prior to changes in their management, but following a shift in leadership, their relationships with their new managers deteriorated.
Both clients had strong reasons to believe they were placed on PIPs not because of any genuine performance issues but as a tool to push them out of their respective companies. After years of stellar performance, a series of managerial changes left them reporting to final managers who didn’t understand their work or value their contributions. Within weeks, both were placed on PIPs, despite no prior indications of performance concerns.
While the circumstances leading to the PIPs were similar, their approaches to dealing with the situation diverged. Each chose a path that aligned with their unique goals and priorities. We’ll explore what they decided to do later in this article, but first, let’s dive into how to recognize a PIP in bad faith and what positive outcomes can arise from such challenging situations.
Are you in a similar situation and would like to talk? Book a free, no-strings-attached session with me today to explore your options and create a plan that works for you.
Recognizing a PIP in Bad Faith
A PIP issued in bad faith often lacks the genuine intention to support the employee. Here are some common signs:
Sudden and Unexpected: You’ve received little to no prior feedback indicating performance issues.
Vague or Unrealistic Goals: The PIP includes unclear objectives or timelines that set you up to fail.
Strained Relationship: The root cause appears to be a poor relationship with your manager rather than actual performance concerns.
Pre-determined Outcome: The process feels like a formality to justify termination, rather than an effort to help you succeed.
If you’re experiencing these red flags, it’s crucial to protect yourself and take control of your next steps.
When a PIP Is Issued in Bad Faith: Preparing Your Exit Strategy
If a sour relationship with your manager has led to a PIP issued in bad faith, consider whether staying in your current role—or even within the same company—is right for you. While fulfilling PIP requirements professionally, start preparing to move on:
Clarify Your Goals: Reflect on whether you want to stay or explore new opportunities. If staying, consider an internal transfer; if leaving, begin strategizing for an external move.
Start a Dialogue: Speak with HR or a senior leader about your concerns and explore internal options like a transfer. Keep the conversation future-focused and professional.
Update Your Profile: Refresh your CV and LinkedIn, and start networking discreetly. Identify roles that better align with your aspirations and values. For further tips on how career coaching can support your job search, check out this blog post: 11 Ways Career Coaching Can Help You Land Your Next Job.
Stay Professional: Fulfill PIP requirements to protect your reputation and minimize further grounds for termination.
Know Your Rights: In Germany, labor laws provide strong protections. Consult with your works council (Betriebsrat) or a lawyer for guidance if you believe the PIP process is unfair.
Plan Your Exit: Secure a new role before resigning if possible. If an amicable exit is feasible, negotiate terms like a fair reference or severance agreement.
Turning a PIP into a Positive Opportunity
While being placed on a PIP in bad faith is undoubtedly challenging, it can also be an opportunity to reassess your career and take control of your future. Here’s how:
Leverage Coaching for Career Growth Request access to your company’s learning and development budget to work with a professional coach. Coaching can help you gain clarity on your career goals, build confidence, and develop strategies for your next move. One of my clients used this approach to refine their resume, identify new opportunities, and build a clear exit strategy—all while maintaining professionalism and fulfilling the PIP’s basic requirements.
Build a Strong Exit Strategy Whether you choose to transfer internally or move to a new company, approach the transition strategically. Secure a new role before resigning, if possible, and negotiate your departure terms professionally.
Focus on Self-Development Use this time to enhance your skills, expand your network, and identify the type of work environment you want in the future. A PIP can be an impetus to reevaluate your priorities and plan for a brighter career path.
What Happened to My Clients?
Both of my clients approached their situations with clarity and strategy, but they chose different paths based on their goals.
The first client decided to sign the PIP as a means to "buy time" while planning their exit. They requested access to the company’s learning and development budget, justifying the expense as part of their commitment to improvement. This allowed them to work with a career coach and prepare for a career change. By the time the PIP process concluded, they had already secured a new role and transitioned smoothly out of the company.
The second client took a more direct approach. They opted for a candid conversation with their manager to avoid the PIP altogether. During the discussion, they acknowledged the strained relationship and expressed a willingness to exit the organization amicably. By negotiating directly, they secured a severance package that included coaching support and avoided the formalities and stress of the PIP process. This open and honest dialogue turned a potentially contentious situation into a smoother transition for both parties.
Both clients turned what could have been a demoralizing experience into an opportunity for growth and change, demonstrating that even in the face of a PIP issued in bad faith, there are ways to take control of your career.
Conclusion
If you’ve been placed on a PIP in bad faith, remember that you are not powerless. By documenting the process, tapping into resources like coaching, and planning your next steps, you can turn this challenging situation into an opportunity for growth and change. Whether you stay within your current organization or move on to a new role, the key is to remain proactive and focused on your long-term goals.
Ultimately, a PIP doesn’t define your worth or capabilities. With the right strategy, it can become the catalyst for a brighter and more fulfilling career path.
If you’d like to discuss your situation and explore how to navigate a PIP or make a career change, book a free, no-strings-attached session with me. I’m here to help you take control of your career and move forward with confidence.
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Until our next breakthrough!
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