Microsoft Rethinks Performance Management Policies to Reduce Layoffs

Microsoft has tightened its policies for firing low performers, taking a more structured approach to addressing underperformance in the workplace. The company’s new guidelines, issued by Chief People Officer Amy Coleman, provide clear performance metrics and stricter guidance for managers on how to handle employees who fail to meet those benchmarks.

The new policy includes a two-year ban on reapplying for Microsoft jobs for staff deemed underperforming, as well as a more transparent and consistent process for evaluating performance. Managers will receive training on assessing performance levels and “accelerating high performance,” while failing workers may be placed on a structured performance improvement plan with targets for improvement.

The company’s shift towards more transparency and consistency in its performance management policies is seen as a move to reduce the risk of lawsuits alleging retaliatory terminations. This approach also marks a departure from Microsoft’s earlier, more relaxed culture, which was often portrayed as luxurious and laid-back.

The news comes on the heels of Meta’s recent layoff debacle, which sparked criticism of CEO Mark Zuckerberg’s handling of the process and raised questions about the company’s treatment of employees. While Microsoft’s new policies may seem extreme, they offer valuable lessons for other companies looking to avoid similar criticisms.

By adopting a more structured approach to performance management, businesses can reduce the risk of lawsuits and improve their reputation as employers. However, it’s also important to remember that compassion and flexibility are essential qualities in any leader, and that treating employees with care and respect is just as crucial as having clear policies in place.

Source: https://www.inc.com/kit-eaton/microsoft-just-tightened-its-policies-for-firing-low-performers/91179508