Microsoft sets ‘5-day deadline’ for under-performing employees as Big Tech firm eyes launch of ‘enhanced tools’

US-based big tech firm, Microsoft Corp., under its new performance management strategy, is offering its ‘low performing’ employees the option to resign by taking a payout to avoid risking termination, reported the news portal Business Insider on April 23. 

According to the internal email circulated amongst the managers, the company announced its plans for a performance improvement plan (PIP) with “clear expectations and a timeline for improvement,” as per the news portal's report.

So now the employees who have been sent this internal email have an option to either enter the PIP program or resign from the company by accepting a Global Voluntary Separation Agreement (GVSA), according to the email, cited in the news report.

“This performance improvement process is available year-round so you can act quickly to transparently address performance issues, while offering employees choice,” Amy Coleman, the chief people officer (CPO) of Microsoft, told the news portal. 

How much is the payout?

According to an internal document cited in the news report, the company is offering its employees 16 weeks of pay to accept this voluntary resignation offer, giving them five days to decide on their preferred option.

The payout is off the table if the employees decide to start the PIP, as per the document. They also reportedly said that the PIP system may work differently for employees outside the United States.

Microsoft refused to respond to the news portal's queries.

Earlier this year, Microsoft laid off nearly 2,000 employees without a severance package who were deemed as low performers after an internal review, according to the news report. 

Two-year rehire ban

According to an ET report, the new policy includes a two-year rehiring ban at Microsoft for employees who leave due to low performance scores or during a PIP.

The report also mentions that the underperforming employees will be barred from transferring to other positions within Microsoft. The move is part of a bigger shift which is seen across the technology industry, where companies shift their focus to increasing productivity and efficiency after years of hiring.

As per the reports, the company has not released an official statement related to the development. However, the Business Insider report highlights the company's shift in focus to boosting productivity.

(LiveMint couldn't independently verify the report.)