Microsoft offers to pay low-performers to quit or join PIP & risk termination: Report
In a shocking move, Microsoft has announced that it will be offering low-performing employees the option to either quit and receive a severance package or join a Performance Improvement Plan (PIP) and risk being terminated if their performance doesn’t improve. According to a report by Business Insider, this new policy is part of Microsoft’s “globally consistent” PIP with “clear expectations and timeline for improvement”.
The news was broken by an email sent by Microsoft’s Chief People Officer, Amy Coleman, to all employees. In the email, Coleman explained that the company is introducing a new approach to addressing underperformance, which will give employees a choice between leaving the company with a severance package or committing to a PIP.
Under the PIP, employees will have five days to decide whether to accept the plan or not. If they choose to accept, they will be given a clear set of expectations and a timeline for improvement. However, if they fail to meet these expectations, they will be terminated.
The email reportedly stated that the new policy is designed to provide employees with “clarity and predictability” regarding their performance and future with the company. It also aims to encourage employees to take ownership of their performance and make necessary changes to improve.
The decision to offer low-performers a choice between quitting and joining a PIP is seen as a bold move by Microsoft, as it acknowledges that not all employees are suited to the company’s fast-paced and competitive environment. By giving employees a choice, Microsoft is essentially saying that it is better to let underperforming employees go than to keep them on board and risk affecting the morale and productivity of other employees.
The new policy is also seen as a reflection of Microsoft’s efforts to become a more agile and adaptable company. In an interview with Business Insider, a Microsoft spokesperson said that the company is committed to “evolving and improving” its policies and practices to meet the changing needs of its employees and the business.
The move has been met with mixed reactions from employees and experts alike. Some have praised the company for being transparent and giving employees a choice, while others have expressed concerns about the potential impact on employee morale and job security.
“What this policy does is it gives employees a sense of control and agency over their own careers,” said Dan Schawbel, a workplace expert and author of “Back to Human: Refocusing Workshops Around People, Not Technology”. “It’s a bold move, but it’s a necessary one. Companies need to start recognizing that not everyone is going to fit in, and that’s okay.”
However, others have expressed concerns about the potential impact on job security. “This policy is a double-edged sword,” said one employee, who wished to remain anonymous. “On one hand, it gives employees a choice, but on the other hand, it also puts a lot of pressure on them to perform. What if they’re not able to meet the expectations? They’ll be terminated, and that’s not fair.”
The new policy is also seen as a departure from traditional HR practices, where underperforming employees are often given repeated warnings and opportunities to improve before being terminated. By offering a choice between quitting and joining a PIP, Microsoft is essentially skipping the warning period and going straight to the termination stage.
The news has sparked a lot of interest and debate on social media, with many employees and experts weighing in on the pros and cons of the policy. While some have praised Microsoft for being bold and innovative, others have expressed concerns about the potential impact on employee morale and job security.
In conclusion, Microsoft’s new policy of offering low-performers a choice between quitting and joining a PIP is a bold move that reflects the company’s efforts to become a more agile and adaptable organization. While it may have its pros and cons, the policy is designed to provide employees with clarity and predictability regarding their performance and future with the company. Only time will tell whether this policy will be successful in improving employee performance and productivity.
