Microsoft is changing the way it deals with employees who are not performing well. The company is now offering these employees two choices:
- Leave the company and take 16 weeks’ pay, or
- Stay and go through a Performance Improvement Plan (PIP)—a strict plan to improve performance.
Employees have only five days to choose. If they decide to go through the PIP, they won’t get the payout later.
This plan is part of Microsoft’s new strategy to handle low performance more quickly and clearly. It’s called the Global Voluntary Separation Agreement (GVSA).
Important Points to Know:
- If someone takes the payout and leaves, they cannot be rehired for two years.
- Employees with poor performance cannot transfer to other teams within Microsoft.
- Earlier this year, Microsoft let go of around 2,000 underperforming employees without any payout.
The company’s HR head, Amy Coleman, said this new policy is meant to make things more fair and transparent across the world. It also gives employees a clear choice when their performance is not up to the mark.
