How African companies are handling underperforming employees and why it matters

When a developer at a Lagos fintech startup started missing deadlines, the HR manager faced a dilemma. Fire them immediately or try to help them improve? In Silicon Valley, the answer is usually a Performance Improvement Plan (PIP), a structured 30-90 day process to get employees back on track before termination. But across Africa's major tech hubs, the approach varies wildly.

South Africa mandates PIPs by law. Nigeria's multinationals use them religiously, while local companies often skip straight to termination. Kenya sits somewhere in between, aware of the concept but inconsistent in practice.

We talked to HR leaders across the continent, dug into research from PwC and McKinsey, and looked at how Africa's biggest economies handle this. What we found surprised us.

Try firing someone in South Africa without a proper PIP, and you're asking for trouble. The country's labor laws, enforced by the Commission for Conciliation, Mediation and Arbitration (CCMA), require employers to give employees a fair hearing and a real shot at improvement before termination. Skip these steps, and dismissed employees can challenge termination in court, often successfully. According to Sage, a major HR software provider there, PIPs have become the standard way to meet these legal requirements. So South African tech companies, especially those with international operations, have some of the most structured performance management processes on the continent. It's not about being nice, it's about staying out of court.

Nigeria tells two different stories. Walk into a multinational's Lagos office, think Microsoft, Google, or local unicorns like Paystack, and you'll find formal PIP processes. But step into a traditional Nigerian company, and it's often a different world. Many prefer quick fixes. "We don't have time for 90-day plans," one Lagos HR manager told us. PwC Nigeria has been pushing performance improvement planning, emphasizing that structured approaches save time and money long-term. But cultural factors make adoption tricky. Hierarchical structures mean direct feedback can feel disrespectful. Managers avoid confrontation to maintain harmony. The result? Informal conversations replace formal PIPs, and documentation is often missing when disputes arise.

Kenya sits between South Africa's legal mandates and Nigeria's informal approaches. Companies with international ties, think Safaricom, or tech startups with foreign investors, tend to have formal PIP processes. Traditional Kenyan companies? Not so much. Some see PIPs as unnecessary overhead. Why invest in improving someone when you can just hire a replacement? But as Kenya's tech ecosystem matures, companies are realizing that firing and rehiring is expensive. PIPs, when done right, can actually be cheaper than churn.

This is where it gets complicated. African workplace culture often prioritizes harmony over direct confrontation. When Nigeria's civil service tried to introduce performance-based pay, employees pushed back hard and the initiative stalled. The lesson? You can't just copy-paste Western HR practices and expect them to work. Hierarchical structures mean feedback flows differently. A junior manager giving direct criticism to a senior employee? That's not how it works in many African companies. But here's the thing. This same cultural emphasis on collaboration can actually make PIPs more effective, if you frame them right. Companies that position PIPs as "development opportunities" rather than "last chance warnings" see better results. Same process, different messaging.

The big consulting firms are paying attention. McKinsey's South Africa office helps companies implement performance improvement programs. PwC Nigeria emphasizes tailoring PIPs to local contexts. "You can't just import a process from New York and expect it to work in Lagos," one PwC consultant told us. The advice is straightforward. Make it consistent. Use objective metrics. Set reasonable expectations. Give clear feedback. Sounds obvious, but you'd be surprised how many companies skip these basics.

Most companies miss this. PIPs aren't just about giving employees a fair hearing before termination, though that matters. They're about improving your entire company process. Without a structured PIP, here's what usually happens. An employee underperforms. Their manager gets frustrated. Maybe they have a few informal conversations. Maybe they don't. Eventually, the manager fires them. The employee is shocked. They claim they never knew there was a problem. A dispute follows. Even if the company wins, it costs time, money, and reputation.

With a structured PIP, everyone knows where they stand. The employee gets clear feedback, measurable goals, and a timeline. The manager has a framework. The company has documentation. But PIPs do something else. They actually improve company processes beyond just handling underperformance. They force managers to give clear feedback and create documentation that helps identify patterns. Are certain roles consistently underperforming? Maybe it's a training issue, not a people issue. The data from PIPs helps companies see which departments need better onboarding and identify skill gaps before they become performance issues.

For African companies specifically, structured PIPs solve real problems. They provide legal protection in countries like South Africa where due process is mandatory. They create fairness in cultures where direct confrontation is avoided. They build trust in hierarchical structures where feedback can feel disrespectful. And they give companies data to improve, not just react.

After talking to dozens of HR leaders and reviewing consulting firm research, here's what actually works.

Start local. South Africa's legal requirements won't work in Nigeria. Kenya's emerging practices need different approaches. You need to understand your country's labor laws and cultural norms before designing your PIP process.

Document everything. Good documentation helps employees understand expectations, tracks progress objectively, and protects everyone if disputes arise. Frame it as development, not discipline. "We're investing in your growth" works better than "this is your last chance." Train your managers. Most aren't naturally good at giving feedback, especially in hierarchical cultures. Use objective metrics. "Your code quality needs improvement" is vague. "Your code review rejection rate is 40%, let's get it to 15%" is actionable.

Managing PIPs manually? It's a nightmare. Spreadsheets get lost. Check-ins get forgotten. Documentation is incomplete. And in South Africa, incomplete documentation can mean losing a labor dispute. That's why more African companies are turning to HR tech platforms. These systems structure the entire process. Goal setting, progress tracking, scheduled check-ins, complete audit trails. Everything gets documented automatically. But the real value isn't just compliance, it's removing the awkwardness. Technology makes performance conversations less personal. When a system tracks metrics objectively, managers don't have to be the "bad guy." The data speaks for itself.

The trend is clear. African companies are moving toward formal performance management. South Africa is already there. Nigeria's multinationals are catching up. Kenya is getting started. As Africa's tech ecosystems mature, companies are realizing that firing and rehiring is expensive. PIPs, when done right, save money, protect against legal disputes, and actually help employees improve.

That's where platforms built specifically for African markets come in. They're making structured PIP processes accessible to companies that couldn't afford expensive consulting or custom solutions before. Take Careersome, which built its PIP module with African companies in mind. The platform automatically schedules check-ins, sends notifications to both employees and managers, and maintains complete documentation that satisfies legal requirements. It's performance management that respects cultural boundaries while maintaining accountability. If you're ready to implement structured PIPs at your company, request a demo to see how Careersome can help you build fair, compliant, and effective performance improvement processes tailored to your local context.