Microsoft continued its crackdown against ‘low performers’ this week with financial incentives for voluntary resignations. The revelation came a day after the company outlined several policy changes including a two year re-hiring ban for such employees. The tech giant recently fired around 2000 ‘underperforming’ employees without severance pay and is reportedly gearing up for a fresh round of layoffs in May.
According to an internal email viewed by Business Insider, the company will now give affected staffers five days to either enter a ‘performance improvement plan’ or accept a payout equivalent to 16 weeks of salary. Those opting for a PIP will not be able to backtrack and accept the disbursement later.
Chief People Officer Amy Coleman recently shared an internal memo highlighting “new and enhanced tools” that would help managers “swiftly address” low performance. Microsoft has also implemented a new option for exiting underperformers and a policy barring such people from internal transfers or being re-hired within two years. The email from the CPO explained that employees who failed to meet expectations could either choose to implement a ‘performance improvement plan’ or transition out of the company. Workers with zero and 60% reward outcomes as well as those undergoing a PIP would not be eligible for internal transfers.
Microsoft performance reviews typically use a zero to 200 scale which in turn determines how much an employee will receive in stock awards and cash bonuses.
The changes come amidst reports that Microsoft is gearing up for a fresh round of layoffs in the month of May. As per another Business Insider report from earlier this month, this will mainly affect mid-level managers as well as people in non-technical roles. People familiar with the matter also told the publication that some Microsoft organisations wanted to increase their ‘span of control’ or the number of employees reporting to each manager.