Seattle, Washington – Microsoft is implementing new policies to ramp up performance management and address underperforming employees in an effort to boost accountability and excellence in the tech industry. The company’s new initiatives include imposing a two-year ban on rehiring underperforming employees who are let go.
According to an internal email from Amy Coleman, Microsoft’s chief people officer, the company is rolling out new tools and policies to assist managers in accelerating high performance and swiftly addressing low performance. These changes come as many tech companies are moving towards stricter performance expectations and less leniency towards underperformers.
The new policies at Microsoft include an option for exiting underperformers and a strict policy preventing them from moving within the company or being rehired for a period of two years. The company is focusing on creating consistency and transparency for employees and managers through these tools, while also fostering a culture of accountability and growth.
In the past year, tech companies like Meta have been implementing similar measures to target low performers and emphasize efficiency over perks. Microsoft itself made headlines earlier this year when it terminated 2,000 underperforming employees without severance, as part of changes to its performance review and management process.
Managers are being encouraged to participate in training sessions to better understand the new performance landscape at Microsoft for rewards and goal setting. The company is also implementing a Performance Improvement Plan (PIP) to help set clear expectations and timelines for employees who are not meeting performance standards. Employees who fall in the zero to 60% rewards category, or are on an active PIP, will not be eligible for internal transfers within the company. Former employees in these categories will also face a two-year rehire ban.
Microsoft’s focus on enhancing performance management and accountability reflects a broader trend in the tech industry towards prioritizing excellence and efficiency. The changes aim to create a culture where high-performing teams can thrive and deliver results for customers and partners.
Overall, Microsoft’s new policies and tools are designed to drive high performance and accountability across teams, emphasizing the importance of delivering results and fostering a culture of success for employees, teams, and the company as a whole.