The Wall Street Journal reported that Ford has instituted a new policy for workers who have been classified as under performers—they are being given the opportunity to accept a severance package or accept a traditional performance enhancement plan (PEP). In most companies Salaried workers are never given an option. Worse yet, a fair amount of employees don’t know they are even in this unfortunate position. One day they are called into a conference room with their Manager and an HR Professional and any illusion of good performance or at least stable employment is crushed with the cold/mechanical rollout of an improvement plan.
Companies spend millions on Performance feedback systems and severance packages but very little on developing their leaders to be comfortable having difficult and productive conversations. Early conversations can take the Ego, Pride and bitterness out of being corrected and make it truly “Constructive”.
As an employee, if you are ever offered a severance or an improvement plan, you need to think really hard about your ability to recover your drive and loyalty to the organization. If you can’t, it might be time to take the package and get a fresh start. Do not underestimate the skills you have to offer another organization.
As an employer you should focus your offering of an improvement plan to include rebuilding not only the performance issues but also the relationship issues that will develop from this process. If the relationship isn’t a focus then it will be nearly impossible for the employee to recover and thrive once the plan is complete.
