‘We absolutely cannot afford to be laid off’: New office manager puts third of the staff on PIP, including top salespersons, leaving employees in fear of losing their job

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  • "1/3 of office put on PIP, are layoffs coming?"

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  • My (29F) husband (31M) does in- home sales at a very large company (multiple offices in every state & Canada). All sales reps are 100% commission, have to drive their own car and pay for their own gas. He did fairly well last year, but his sales dropped over the holidays. Before the
  • drop off in sales, my husband was one of the top ten of salesmen in the office, and was on track to be promoted to assistant sales manager. He has been with the
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  • company for one year. His office has a new manager that moved from a different branch in January. He has already placed 1/3 of the office on PIPS (including my husband). Does this
  • mean layoffs are imminent? I am not in the sales world, so I am unsure of what is typical in the business. My husband is overly optimistic in life in general, and is viewing it as the manager wants
  • to see him do better (although he agrees that the company is probably trying to push out some of the sales reps). I tend to be more pessimistic, and I am
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  • wondering if I should be convincing my husband to start looking at other jobs? We absolutely cannot afford for him to be laid off.
  • principium_est Seems like it. Probably trying to have a layoff without unemployment claims and severance.
  • Or maybe putting 1/3rd of the office on a PIP is some stupid productivity "hack" this genius came up with?
  • Sad-Cookie Does the company have any new investors? You can check SEC filings to see if they were bought by private. equity.
  • FantasticMeddler if someone put me on a PIP and I wasn't even on salary I would straight up Hulk out on them. A PIP for a 100% commission job? Get tha f outta here.
  • thelonelyvirgo PIPs usually entail 30/60/90 day plans. Most managers will follow protocol that is laid out by Human Resources to reduce the risk of being sued for unlawful termination or unfair hiring practices.
  • sendmeyourdadjokes You're misusing the word layoff but yes, he should get a new job. PIPs would be firing people for under performance but layoffs are for economic reasons or not enough work to keep them employeed.
  • Most times, managers put people on PIPs to fire them, not to encourage better performance. Even if he does beat the PIP its highly unlikely he'd be promoted with a PIP in his recent record.
  • PBmaxprofit Safe to assume that's the case or a POS manager failing to motivate his or her team
  • ReefkeeperSteve I've never seen a pip used to constructively improve an employee. They are a mechanism of termination, that's it.
  • Amplith PIP's have become another tool in the box for companies to lay off or fire people. Usually, makes it easy to choose who to get rid of when trying to save money.
  • ucoocho What's the purpose of firing someone who is 100% commission. No salary if they don't sell anything, and no benefits, right? Seems like no downside on the surface
  • OldClunkyRobot As others have said, if these folks are on PIPs then they're being prepared to be fired, not laid off. I'm wondering if the company wants to lay people off but doesn't want to pay severance, so they're doing this to scare people into leaving. Seems super shady and not a sign of a stable company, but in fairness I haven't worked in sales so I don't know if this is normal for them.
  • I worked at a content marketing company that was sort of an older startup -- they were about a decade old but still not yet profitable. At one point they put a bunch of Assistant Editors on PIPS, even people who'd had no documented issues. Even when people successfully met the PIP
  • requirements, the company extended their PIPs "just to be sure" or some BS like that. A lot of people up and left and I don't think they replaced them in the headcount. Maybe that was their way of reducing payroll without paying severance? That same company ended up forcing the founder/CEO out later so they clearly were not doing well.
  • I'm sorry your family is dealing with this. I'd advise your husband to seek out a new job. At the same time, he should do what he can to meet the PIP requirements. Generally if a company puts a person on a PIP it means they're planning on getting rid of them, but since it's a mass PIP I could see them saving a few who go above and beyond.
  • SonnyGeeOku Yes, best to start looking for another job if you haven't been looking already.

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