Microsoft Rolls Out Stricter Performance Management Policies
Microsoft is implementing stricter performance management policies, including a two-year rehire ban for underperformers and restrictions on internal transfers. These changes aim to accelerate high performance and swiftly address low performance, aligning with industry trends toward performance-based evaluations.
The company is also introducing AI-supported tools to aid managers in performance conversations. Microsoft’s Chief People Officer, Amy Coleman, unveiled these strict new performance management policies in an internal email to managers, emphasizing that the initiative extends beyond corporate success to individual and team achievement.
Microsoft’s performance management overhaul comes months after the company fired 2,000 underperforming employees without severance earlier this year. The company is planning to launch several initiatives to strengthen how it measures, manages, and motivates teams to deliver for customers.
Coleman’s message to managers concluded by emphasizing the interconnected nature of success: “This isn’t just about Microsoft’s success. This is about your success, your team’s success, our customers’ success, and together, fostering a culture where high-performing, winning teams can thrive.”
