Microsoft has implemented new performance management policies aimed at enhancing employee accountability and addressing underperformance. These changes come as the tech industry shifts towards stricter performance expectations, following a trend of increased job cuts based on productivity. The company, under its new Chief Human Resources Officer, Amy Coleman, has introduced tools to help managers evaluate and accelerate high performance while quickly addressing low performance.
A key facet of the new policy is the introduction of a two-year rehire ban for employees who are deemed underperformers. These policies are designed to create clarity and transparency in the performance review process and include the option for employees who do not meet expectations to enter a Performance Improvement Plan (PIP). If these employees leave the company during or after a PIP, they will also face the two-year rehire restriction.
Microsoft’s internal communications emphasize the importance of maintaining high performance, with a focus on accountability, growth, and the overall success of the company. This overhaul aligns with broader industry trends, where major companies like Meta have also adopted similar performance-focused practices.
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