Microsoft is doubling down on managing employee performance, tightening the screws on underperformers.
As per an internal email, the tech giant has placed a ban on internal transfers and a two-year rehire block.
The new policy applies to employees who are consistently rated low in performance reviews.
This is part of a wider industry shift toward prioritizing efficiency and accountability.
New rules for employees rated poorly
Policy
The new policy impacts workers who fall in the 0-60% rewards category, basically those rated poorly in performance reviews.
These employees will no longer be permitted to apply for other internal roles at Microsoft.
Additionally, if they leave while on a Performance Improvement Plan (PIP) or with a low reward score, they won’t be eligible for rehire for two years.
Microsoft introduces new performance management tools
Tool rollout
These new rules come just as Microsoft is introducing performance management tools for the next fiscal year.
Amy Coleman, Microsoft’s new Chief People Officer, said the aim is to offer managers better ways to assess employee impact and reward top performers more clearly and consistently.
Training sessions are also being conducted to help managers adapt to these updates.
Global standardization of handling underperformance
Global
Microsoft is standardizing its approach to handling underperformance across the globe.
Managers now have the option to put struggling workers on structured improvement plans, with specific goals and deadlines.