Microsoft has introduced a new performance improvement plan that offers low-performing employees a choice: accept a payout to leave the company or risk termination under a performance improvement plan (PIP). The tech giant’s new system, revealed in an internal email to managers, aims to set “clear expectations and a timeline for improvement.”
According to the email, viewed by Business Insider, affected employees can either enter the PIP or quit and accept a “Global Voluntary Separation Agreement (GVSA)” with a payout equal to 16 weeks of pay. Employees have five days to decide which option to take. If they choose to start the PIP, the payout is no longer available.
Similarities to Amazon’s Pivot Program
Microsoft’s approach bears resemblance to Amazon’s Pivot program, which also offers employees a choice between a PIP and a payout if they leave the company. Business Insider has previously reported on Amazon’s Pivot program, with some employees criticizing it for allegedly being designed to meet firing quotas rather than help underperforming staff improve.
Shift Towards Stricter Performance Expectations
The new performance improvement plan is part of a broader shift in the tech industry towards more rigorous performance expectations. Microsoft recently fired 2,000 employees deemed underperformers without severance, and leaders within the company are considering additional performance-based cuts as early as May. These potential cuts may target middle managers and aim to increase the ratio of coders to non-coders on projects.
The move towards stricter performance expectations reflects a change in the tech industry’s approach to employee management. As companies like Microsoft and Amazon implement more rigorous performance review systems, employees are facing increased pressure to meet expectations or risk losing their jobs.
