Microsoft Enforces Stricter Rules for Underperforming Employees
Microsoft has introduced tougher performance management policies, according to a Business Insider report. The new measures, outlined by Chief People Officer Amy Coleman in an internal email, aim to enhance accountability and differentiate between high and low performers more clearly.
Employees in the bottom 60% of performance ratings will no longer be eligible for internal transfers, limiting their career mobility within the company. Those on formal improvement plans will face a structured timeline to meet targets or leave under a ‘Global Voluntary Separation Agreement (GVSA)’, a voluntary exit option with undisclosed terms.
The company is now focusing on performance transparency, equipping managers with new evaluation tools and AI-powered training to handle difficult feedback conversations. Internal documents suggest the policies aim to foster a more “meritocratic” culture, rewarding top contributors while addressing stagnation.
While Microsoft hasn’t publicly commented on these new policies, the impact on employee morale and attrition remains to be seen. The tech giant is doubling down on performance transparency, signaling a shift towards a more competitive work environment where even Microsoft is no longer offering unlimited second chances.
