Outlook Business Desk
Employees have a strict five-day window to either accept a Performance Improvement Plan (PIP) or take voluntary exit with a severance package. This is part of Microsoft’s new performance management approach.
Employees opting for voluntary exit under the new policy will receive a severance package consisting of 16 weeks’ pay. However, those who choose the PIP forfeit this severance benefit.
Those who decide to go through the Performance Improvement Plan (PIP) will not be eligible for the severance package. The PIP is a performance-driven corrective action within Microsoft’s new policy.
The policy will be applied globally, with adjustments based on local labor laws. Microsoft wants to handle underperformance consistently across all its offices.
Employees who choose to exit the company through this program will face a two-year rehire ban. They will also be ineligible for internal transfers during this period.
Earlier this year, Microsoft laid off 2,000 underperforming employees without offering severance. This new policy aims to address underperformance more proactively, with more structured and transparent options.
Microsoft’s new approach reflects a growing trend in the tech industry toward stricter performance standards. Companies are becoming less lenient with underperforming employees in the competitive tech environment.