Microsoft Implements Stricter Performance Management System With Two-Year Rehire Ban
Microsoft is ramping up its performance management approach by implementing stricter policies aimed at underperforming employees. This includes a formal Performance Improvement Plan (PIP) that offers employees the choice to meet improvement targets or exit the company under a Global Voluntary Separation Agreement. Notably, those leaving under specific low performance criteria will face a two-year ban on rehire and internal transfers.
The move comes in the wake of recent layoffs where Microsoft terminated 2,000 staff members without severance. To aid managers in handling difficult conversations, the company is also developing AI tools designed to facilitate these discussions and promote a consistent performance culture across the organisation, as stated by Chief People Officer Amy Coleman.
Key Points
- Microsoft has introduced a stricter performance management system targeting underperformers based on internal ratings.
- Employees facing a PIP can either meet performance targets or opt to leave with a separation agreement.
- A two-year rehire ban is placed on employees rated low and those exiting during a PIP process.
- The new system follows a recent round of layoffs affecting 2,000 employees.
- AI tools will support managers in having constructive performance-related conversations.
Why should I read this?
If you’re interested in workplace dynamics, this article gives you the lowdown on Microsoft’s bold new measures that could ripple through the tech industry. It’s a must-read if you’re keen to understand how performance management is changing and the impact on employee relations. Plus, it might just save you a bit of Googling to get all the details!