Microsoft is taking a more aggressive approach to employee performance. The company has decided to eliminate low performers, giving them two options: either improve through a performance improvement plan or leave the organization. Additionally, Microsoft has implemented a policy that prohibits the rehire of these underperforming employees for two years, and they will not be allowed to transfer internally either.
Recently, Microsoft laid off about 2,000 employees due to underperformance, and those individuals did not receive severance pay. Reports indicate that a new round of layoffs may occur in May, primarily affecting mid-level managers and non-technical employees.
According to Business Insider, Microsoft has developed tools to help identify and assist low performers while also fostering the growth of high achievers. The company is focused on growth and expects its employees to take accountability for their work.
Identified underperformers have the option to participate in a performance improvement plan (PIP) or exit the organization completely, as they will not be eligible for internal transfers.
Performance assessments at Microsoft use a scale from 0 to 200. Based on their position on this scale, employees receive awards in the form of stock and cash bonuses.
