What’s companies doing really name of PIP (performance improvement plan)

There are appraisal process, assessments and performance improvement policies in all IT companies. It might differ slightly between each other, but motive is same – more profit. It might’ve been started as evaluating employees’ performance truly and to improve their performance in earlier days. But not now, when demand (graduates) is very high compared to the requirements (projects). Below is an example of how assessments are designed and how an employee is pressurized in the name of assessment, in own words of one of the employees.
Normally at Cognizant (until 2016), fourth rating (in the scale of 5) will be given to 4% of overall strength. But this year it was revised to 10% at the last minute of our appraisal cycle. By that time (Feb 2017) managers had completed their appraisal rating. Because of this last minute change and stiff target, they went crazy and had given 4th rating to the employees who are released to bench. Employees who had worked efficiently also ended up getting last rating followed by threats of job termination.
Some of the employees approached labor commission with the help of FITE and explained about the forced resignations. Then Cognizant took another approach to carryon the forced resignation in a different format called PIP (Performance Improvement Plan). Employees who are currently in a project has to undergo PIP process. At the end of PIP, the manager and the HR will decide the fate of these employees.


PIP process will be very difficult to clear, because of its rules like:

·         Employees should not have taken any leaves during the two months period

·         There should not be any escalation

·         Employees should not have any arguments with their colleagues
Most of the employees are unable to handle this stress in the name PIP and resigning voluntarily. In few cases HR is advising managers to create evidence of faults done by employees to make sure he/she fails in the PIP.


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SCENARIO 2: Assessments

The process is introduced recently by HR policy for the remaining MS rated employees who are in bench. They need to take assessments (that might not be familiar to the employee, but relevant to the technology they worked). Topic and time will be decided by the HR team. Employees will be notified couple of days before the exam. Two chances will be given to them, and all who don’t score over 70% will be terminated. Employees are notified by HR via email stating that their job is conditional.


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SCENARIO 3: Updated ADP policy

After the employee clears the assessment and proves that they can upgrade themselves they will be given 60 days of time to find a project to work. Otherwise, HR team will take decision whether to retain the employee or not.

Reason for this forceful resignation:

To increase the company profitability the project managers are given target in the name of operational parameters and marginal optimization. Few of the targets given are mentioned below.
·         At least 15% of fresher

·         Over 65% PA level designation (who are less than 3 years of experience)

·         CP should be over 40%; in few cases upto 50% (Profit margin)


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This leads to senior folks being released to bench and not getting new project, as the above mentioned.


– F.I.T.E Media Team


  • A Kabilan

    Although the objective of PIP should be improve the performance of employees and to introduce them to newer areas of technology, process and tools, above narration clearly establishes the motive of PIP programs as a tool to pressurize the employees to leave the organization. Once an employee is taken into an organization after due selection process, he is part of the company and it is the responsibility of the company to make the productive use of her or his capabilities. Company also can not put the responsibility of finding a suitable project on the shoulders of the employee. While we are willing to co-operate with the company to seek and adopt to newer technology or processes, it is the role and responsibility of the company to effectively utilize the skills of the employees. We have to unite and fight the sham of PIP and ensure that our right to job is protected under all circumstances.

  • Sukumar Repaka

    I am one of the Sufferer of this process in Geometric, Pune (Now, Geometric doesn’t exist technically because HCL Tech took-over from 01/April/2017).
    On 04/Aug/2017, they asked me to write my Resignation on a white paper and kicked me out of the company without giving time or money. When I asked them for time, they said that your time in PIP itself should be treated as Notice period. God and my family only knows how I sustained those 2.5 months without any job, sitting idle at home.
    Fortunately, I joined Altair Engineering, Bengaluru on 23/Oct/2017.
    But, I can’t forget those fateful days and how they behaved with me:(

  • Anarchists-san-frontier

    “But not now, when demand (graduates) is very high compared to the requirements (projects).”

    It is supply(graduates) that is high. It is by design that there are too many software engineers in this country where 30% of youth is illiterate. Such a situation is always created in a capitalist society where the profit is more important than the employee or the society.

    You must ensure that every single employee in the IT industry is unionised. Every single employee. You must be prepared to work in forming in an international union with all the workers in that particular company. That is very important and it must done quickly. Before the next financial crash. The union must be in a position to seize the company from the parasites who sit at the top and greedy shareholders.

    Workers of the world, unite!