Microsoft has unveiled a new performance management strategy aimed at addressing underperformance within its workforce.
The policy offers underperforming employees the choice to voluntarily leave the company with 16 weeks of severance pay.
Details of the Policy by Microsoft
Under the new framework, employees identified as low performers are given two options.
They can either undergo a rigorous Performance Improvement Plan (PIP) or opt for the Global Voluntary Separation Agreement (GVSA) with 16 weeks of severance pay.
Employees have a five-day window to make their decision.
Employees who choose the PIP route will no longer be eligible for the severance payout. They must meet strict performance targets to retain their positions.
The policy also includes restrictions for employees who leave under these circumstances.
Individuals who exit during or after a PIP or receive low performance ratings will face a two-year ban on rehire and will be barred from transferring to other roles within Microsoft.
Rationale Behind the Move
Amy Coleman, Microsoft’s Chief People Officer, emphasized that the initiative aims to create a globally consistent and transparent approach to performance management.
In an internal email, Amy highlighted the importance of swiftly addressing performance issues while providing employees with choices.
The policy is designed to reward high performers and address underperformance effectively.
Microsoft Voluntary Exit Programme: Comparisons to Industry Practices
Microsoft’s approach has drawn comparisons to Amazon’s controversial “Pivot” program, which similarly offers severance packages to underperforming employees.
Critics of such programs argue that they prioritize termination quotas over employee development.
However, Microsoft has positioned its policy as a balanced strategy that empowers employees with options while maintaining high performance standards.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
