I just got put on a PIP. What the heck should I do?

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I just got put on a PIP. What the heck should I do?

That question landed in my inbox last week. And I see it on Reddit all the time.

There’s two things I’m certain about: 1) dogs are way better than cats, and 2) companies use PIPs when they want to fire you.

PIPs can happen to good reps who end up in bad situations.

Things like a new manager or new territory, or just an unlucky quarter.

If you find yourself on a PIP, here’s a practical guide on how you got here and what you should do next.

A Performance Improvement Plan is a formal document that basically says your job is at risk.

It lists where you fell short and targets you need to hit in the next 1-3 months. It also says what happens if you don't hit those targets (ie., you lose your job).

Most run for 30, 60, or 90 days. Your manager typically writes it along with someone from HR.

You'll be asked to sign it, but make sure you actually read it first. Most PIPs are worded so a signature confirms you received the document, but not that you agree with the assessment. Others are worded so it reads as agreement.

Employment attorneys usually recommend signing either way, but writing "signature acknowledges receipt only" above your name if the language is hard to understand.

The meeting where you’re finding out about your PIP is far from the beginning.

Your manager probably sees you as an underperformer and feels that something needs to be done about it. Then they start documenting where you’re underperforming and putting together a plan that gets reviewed with HR.

By the time they show it to you, more than one person has discussed you, agreed on the targets, and agreed on what happens if you miss them.

The Wall Street Journal covered this in November 2024 in a piece called "The Most Hated Way of Firing Someone Is More Popular Than Ever. It's the Age of the PIP."

Larry Gadea, the founder of the software company Envoy, estimates that 10-25% of employees placed on a PIP survive the process.

Howard Lerman, who co-founded and ran Yext, described the PIP as a legal step documenting that you were warned before being fired.

So… sometimes the targets are achievable, and you can survive a PIP. But the odds aren’t in your favor.

Most of the time you’re given two options. But I think there’s actually a third option that gets missed.

Option 1: Work the plan.

You stay, you hit the goal, and you keep your job.

If you decide to do this, make sure you document everything. Get every target and the measurement method in writing. Ask for a weekly check-in and document every piece of support you asked for and whether you got it.

That paper trail helps if you hit the goals and get terminated anyway.

Option 2: Take the package.

Many companies will offer an alternative: skip the plan, sign a separation agreement, take a payout, and leave now.

Sometimes they offer it upfront, and sometimes you have to ask if they’ll offer it to you.

The payout is usually the same amount you’d make if you stayed for the PIP timeline (1-3 months).

In most cases, this is the smart move. Take the payout, and use the next 3 months to hunt for a new job all day.

Option 3: Negotiate.

This is the one people forget.

You never get something if you don’t ask for it.

You can ask for changes to your payout amount, end date, commission treatment, how the company describes your departure, non-disparagement, and non-compete release.

If the money is meaningful, it may be worth spending an hour with an employment attorney to understand all of your options.

Even if the plan is fair and you're confident you'll beat it, start looking at your options.

Even if you blow past your goals and graduate a PIP, you’ll always be the rep who was on a PIP. That follows you into territory assignments and promotion conversations.

Great reps end up in the wrong role all the time.

Wrong product. Wrong territory. Wrong ICP for the way you sell. Wrong manager. Wrong timing, where the category cooled off eight months after you signed the offer.

I’ve seen reps absolutely bomb at one company, and then crush it at another.

One bad run at one company doesn’t dictate your future. Chalk it up as an L, and go find the role that fits you.

Check out The Follow Up Guy on LinkedIn.