Microsoft has proposed changes in its guidelines that may facilitate the dismissal of employees who aren’t meeting expectations. In an email sent by Amy Coleman, Microsoft’s Head of Human Resources, she details the updates to their policies concerning underachieving staff members.
On Friday, April 18, 2025, an email that was later distributed by Business Insider was originally sent to managers.
In case a Microsoft employee fails to meet performance standards, their managers may initiate the Performance Enhancement Plan as a means to establish an improvement schedule. Employees are then presented with the choice to adhere to this schedule or choose to part ways with the company via a Global Voluntary Separation Agreement (GVSA).
In various sectors, you’ll often find the idea of a Performance Enhancement Workflow. This performance enhancement process can serve as a valuable tool for employees, assisting them in boosting their output or enhancing the quality of their tasks.
Based on my observations, it’s common for staff members who are put on a Performance Improvement Plan to depart the company soon after. Often, they start exploring other job opportunities right away.
The email indicates that workers who receive a score between 0 and 60% on their performance evaluation will not be allowed to transfer within Microsoft or reapply for two years after being let go. This evaluation system ranges from 0 to 200 and influences the bonuses and stock options provided to employees.
Coleman presented the rules and strategies with the aim to boost productivity rapidly and promptly tackle underperformance. The human resources head clarified that these tools promote a setting that values responsibility and development, allowing you to handle performance issues with both precision and compassion.
Microsoft let go of approximately 2,000 staff members due to performance-related layoffs earlier in the year. Additionally, it’s anticipated that they will reduce their workforce further to maintain a higher proportion of coding personnel compared to non-coding employees.
As an outside perspective, it’s clear that at Microsoft, they prioritize and nurture high-performing talent continuously. They strive to foster learning and growth among their team members. When individuals fall short of expectations, the company takes the necessary steps to address the situation. This was evident following the recent personnel changes in January 2025.
Microsoft appears to be continuing that approach with its latest tools and performance guidelines.
Business Insider shared the full email from Microsoft:
“Managers,
I appreciate your understanding regarding the unforeseen technical issues with our product yesterday. Being our first customer allowed us to identify areas for improvement and act swiftly on them.
OR
I want to express my gratitude for your patience during the unexpected technical problems with our product yesterday. As our first customer, this situation provided us with a unique chance to learn and make immediate improvements.
In the spirit of Satya’s latest Employee Town Hall address, I am deeply committed to ensuring our company thrives not just now, but well into our 51st year and beyond. This entails continuous innovation in our offerings, maintaining a significant positive impact for both our customers and partners. To achieve this goal, my focus is unwavering: we must strive for peak performance to meet our objectives encompassing security, quality, and cutting-edge AI. By keeping this focus and cultivating a growth mindset, we foster excellence, inspire ourselves to conquer challenges, and ultimately deliver exceptional results.
Today, we’re introducing upgraded resources designed to boost your high-speed operations and promptly handle any low performance issues. Our aim is to establish a unified, clear, and open environment for both employees and managers (subject to local laws and consultations). These new tools will further promote a culture that values accountability and growth by providing you with the means to tackle performance hurdles in a clear and compassionate manner.
Preparedness of Managers for FY25 Performance: Join a 1-hour Virtual Session
Content: Sign up for an interactive, facilitated virtual event next week to delve into the performance scene at Microsoft during the upcoming fiscal year (FY25). These sessions will uncover updates on rewards, offer tips on distinguishing reward outcomes, and clarify what it takes to make a “substantial difference.” In addition, you’ll receive an email from Performance and Development in the coming week with further details about Connects.
2021 Transparent and Clear Compensation Structure: This year, we’re committed to enhancing transparency and clarity in our Compensation Process for Managers. We’ll provide extra guidance for each compensation outcome, as well as display payout percentages to assist you in making decisions that align with our high-performance standards. By the end of this month, further details regarding rewards will be disclosed.
Improvement Strategy for Employee Performance: If an employee fails to meet performance standards, consider implementing the Performance Improvement Process (PIP), a universal method designed to establish clear expectations and a deadline for progress. The employee has the option to follow this improvement plan or opt for a departure from the company, with the provision of a Global Voluntary Separation Agreement (GVSA). This performance enhancement strategy is accessible throughout the year, allowing for prompt and transparent resolution of performance problems, whilst giving employees the choice in the process.
Manager Improvement Programs: Furthermore, in the upcoming period, we will introduce various programs aimed at enhancing how we evaluate, manage, and inspire our teams to excel in serving our customers. You’ll benefit from AI-assisted tools that offer scenario-based practice, enabling you to prepare for productive or difficult discussions by doing so in an interactive simulation.
I appreciate your exceptional leadership that propels our team towards achieving excellence and maintaining accountability. It’s not just about Microsoft prospering; it’s also about your personal growth, the triumph of your team, the satisfaction of our customers, and collectively, nurturing an environment where top-tier, victorious teams can flourish.
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2025-04-22 17:09