Microsoft has implemented a new performance management strategy that gives underperforming employees the option to accept a payout and leave the company instead of entering a performance improvement plan (PIP), according to internal documents.
The company is now offering 16 weeks of pay to low-performing employees who opt for voluntary exit, according to Business Insider. This approach mirrors Amazon’s controversial “Pivot” program, which has faced criticism for allegedly being designed to meet firing quotas rather than genuinely help employees improve.
Microsoft’s one way to address low performance is by letting them go
According to an internal email sent to managers on April 22 by Microsoft’s new Chief People Officer Amy Coleman, the company is rolling out “new and enhanced tools to help accelerate high performance and swiftly address low performance.”
Poll
Would you consider taking a payout to leave the company if you were identified as a low performer?
Employees placed on PIPs now face a stark choice: accept the improvement plan with its rigorous performance targets or take the severance package and exit the company. The separation program is being dubbed as “Global Voluntary Separation Agreement (GVSA)” at the company . Those who opt for the PIP will no longer be eligible for the payout, and they have just five days to make their decision.
The asterisk for underperforming employees
The new policy also includes a two-year rehire ban for employees who leave after receiving low performance scores or during a PIP. Additionally, underperforming employees will be barred from transferring to other positions within Microsoft.
Earlier this year, Microsoft laid off approximately 2,000 underperforming employees without severance, following months of performance evaluations across all levels of the company.
Coleman’s email emphasized that these changes aim to “create a globally consistent and transparent experience” while fostering “a culture of accountability and growth.” The performance improvement process will be available year-round, allowing managers to “act quickly to transparently address performance issues, while offering employees choice.”
