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Microsoft Launches Stricter Performance Management Policies with New Tools and Exit Options

The company enforces rehire bans, transparent rewards, and AI-driven managerial tools to drive accountability and high performance.

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Overview

  • Microsoft has rolled out globally consistent Performance Improvement Plans (PIPs) that set clear expectations and timelines for underperforming employees.
  • Employees rated in the lowest performance brackets or on active PIPs are barred from internal transfers and face a two-year rehire ban if they leave.
  • The new Global Voluntary Separation Agreement (GVSA) offers employees the option to exit voluntarily during a PIP with a separation package.
  • Managers are receiving training on updated rewards policies, which now include clearer payout percentages and enhanced guidance for evaluating performance.
  • Upcoming AI-supported tools will help managers practice challenging performance conversations in an interactive environment.