Microsoft is offering a new choice to employees who are deemed low performers: accept a payout to quit or risk termination on a performance improvement plan.
An internal email to Microsoft managers on Friday disclosed the company’s new “globally consistent” performance improvement plan with “clear expectations and a timeline for improvement.”
Impacted employees can enter the PIP, or quit and accept a “Global Voluntary Separation Agreement (GVSA),” according to the email viewed by Business Insider.
“This performance improvement process is available year-round so you can act quickly to transparently address performance issues, while offering employees choice,” stated the email from Amy Coleman, Microsoft’s new chief people officer.
Another internal Microsoft document viewed by BI states that the payout to employees will be equal to 16 weeks of pay. Impacted staff have five days to decide which option to take. If they choose to start the PIP, the payout is off the table, according to this internal document.
The new PIP system may work differently outside of the US where countries have different laws. Microsoft declined to comment.
Shades of Pivot
Microsoft’s approach is similar to Amazon’s Pivot program, which offers a PIP option or a payout where the employee leaves.
Related stories
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
BI has reported extensively on Pivot, a central cog in a broader Amazon performance-review system that some employees have said is designed to meet firing quotas rather than revive careers.
Amazon has defended its system in the past. Back in 2021, the company told BI that it provides managers “with tools to help employees improve their performance and grow in their careers. This includes resources for employees who are not meeting expectations and may require additional coaching.”
More PIP, less coddle
The latest changes come as Microsoft, and the tech industry overall, shifts toward more rigorous performance expectations and less coddling.
Microsoft earlier this year fired 2,000 employees deemed underperformers without severance.
Leaders in at least some parts of the company are considering additional performance-based cuts as soon as May. They’re looking at cutting middle managers and how to increase the ratio of coders versus non-coders on projects.
Have a tip? Contact this reporter via email at [email protected] or Signal at +1-425-344-8242. Use a personal email address and a nonwork device; here’s our guide to sharing information securely.
