New Delhi: Microsoft is becoming stricter with its workplace policies, such as basing promotions on office presence, which is a major change in its order of flexibility during the pandemic. Employees in the Seattle region within a commutable distance of 50 miles of a company office are required to report to the office or office location at least three days per week as of September 19, according to an internal memo by Chief People Officer Amy Coleman.
The new rule highlights the in-person collaboration drive at Microsoft; the leadership believes that teams do better and become more innovative in person. Those who do not conform to this risk being sidelined during promotions and other career advancements because the company would consider employees who promote on-site culture and teamwork. Exception requests are also permitted but need to be submitted by September 19, and there is no indication yet on whether they will be approved.
Phased rollout of the policy
The requirement will be implemented in three phases. It starts with the Puget Sound area, then extends to other U.S. offices and lastly to international offices of Microsoft in 2026. Coleman pointed out that face-to-face interaction is an essential requirement; the research indicates that employees are more productive, feel more energised, and perform better when collaborating in person.
Crackdown on underperformance
The attendance rules come into effect as Microsoft becomes more performance-orientated. This year the firm has already retrenched approximately 6,000 employees, or 3% of the workforce, on the basis that it is necessary to restructure and remain efficient. The reduction was even after registering a net income of $25.8 billion.
Similar to other tech giants, Microsoft is juggling intensive investment in artificial intelligence and reduction of costs in other areas. Competitors like Google have also cut down on the number of staff, which is an indication of the general trend in the industry to tighten the belt and invest in AI as the new engine of growth.