Microsoft has introduced a policy of 2-year ban on employees who the company let-go over performance issues. Furthermore, these job cuts will be termed as ‘good attrition’, meaning the company is happy to let the employees go who wish to leave the company, says a report by Business Insider.
In the past couple of months, Microsoft has been reworking its performance management process. The company has gone tough on the underperforming employees. The two new tools are part of the company’s strategy of shedding the nonperforming employees.
Previously, the company had fired 2000 underperforming employees this year. The fired underperforming employees were not given a severance package by the company. According to Business Insider, the company’s ‘good attrition’ plan aligns with company’s goal of shedding a fixed percentage of employees every year.
Shift in big tech companies’ performance policies
There has been a broader change in the employee retention and performance policies among the big tech companies. Companies like Meta and Amazon have also introduced stricter policies on the performance of their current and outgoing employees.
Earlier, Amazon had introduced ‘unregretted attrition’ according to which the managers are expected to fire a certain proportion of their employees each year. The practice has raised concerns as it might lead to ‘hire to fire’ practices.
Meta has also been flagging its underperforming employees. According to Business Insider, the company has an internist list of former employees who are not to be hired.