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Microsoft Offers Underperformers Cash To Quit (businessinsider.com) 60

Microsoft has instituted a new "globally consistent" performance improvement process. According to internal documents, employees flagged as underperformers now face two options: enter a performance improvement plan with "clear expectations and a timeline for improvement" or accept a "Global Voluntary Separation Agreement" worth 16 weeks' pay.

Affected employees have five days to decide, and those choosing the improvement plan forfeit the severance option. The program, announced in an email from new Chief People Officer Amy Coleman, operates year-round to "address performance issues, while offering employees choice."

Microsoft Offers Underperformers Cash To Quit

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  • by sid crimson ( 46823 ) on Thursday April 24, 2025 @10:52AM (#65327769)

    Look, sometimes you accept a job thinking it's one thing only to find it's another. You don't fit, your skillset isn't quite right, the job description has more lines to read between than you realize. This should prevent lawsuits and bad feelings. And, it's liable to be pretty costly... hopefully Microsoft's shareholders don't mind.

    • So typically stuff like this is a way to get older employees out the door without risking an age discrimination lawsuit.

      With Microsoft it might also be a way to get rid of some of the expensive local talent so they can bring in more h-1bs. The current administration has already said they are all in on the H-1B program. So I suspect Microsoft is gearing up to replace local talent with employees they can overwork and burn out and easily replace.

      If there was actual competition they would have to worry
      • by Ol Olsoc ( 1175323 ) on Thursday April 24, 2025 @12:03PM (#65327965)

        So typically stuff like this is a way to get older employees out the door without risking an age discrimination lawsuit.

        We hear this a lot, that the Young people are the ones who know how things are, that if you are over 50, you have no tech savvy.

        Yet here I am at 70, having the technical chops and the ability to get things done, still working and still sought out. No brag, just fact.

        While I "retired" before GenZ came online, it was always amusing to deal with the Millenials, who showed up believing that anyone their parents age was a troglodyte, and then finding out I knew more about what they were trying to do than they ever would. As well - their social skills were lacking.

        Some older folks to decide to stall their learning process, but most of us just carry on. The only reason that we might be encouraged to leave is that we cost more than an entry level person. The place I retired from found that didn't work, and the place I'm at now understands that trying to hire cheap doesn't work well.

  • 1) Get hired by Microsoft.
    2) Do a crappy, half-assed job.
    3) Profit!

  • This isn't news-worthy, this is basically standard operating procedure for companies that have HR departments.

    • by Jack9 ( 11421 )

      Most companies have no idea who is an "under-performer".
      Standard procedure is that you are "laid off". Being given a plan of improvement or being paid to exit as an option, is HIGHLY irregular.

      • Many companies demand managers assign employees to categories according to a ratio. The worst companies slap a culture of paranoia, backstabbing and cronyism on top so managers give bad scores for reasons that are nothing to do with competence.

  • by UnresolvedExternal ( 665288 ) on Thursday April 24, 2025 @11:01AM (#65327795) Journal

    Take the money and find a new job if you work for Microsoft USA

    PIPs are always stacked against you. Management will move the goalposts or kill your project.

    The thing that could blow up for Microsoft is, European employee rights are much stronger than the US, so they could be in for a bunch of tribunals.

    • European companies are also a lot more careful about hiring employees in the first place though so they don't tend to find themselves in a position where they have some useless clod that needs to be micromanaged like this. Some years ago I'd spoke with one of the owners of a German company who I'd been working with and was rather surprised about the lengthy process they had for hiring new employees until he explained that the laws made it much harder to get rid of someone. As such they didn't hire anyone th
    • by uncqual ( 836337 )

      PIPs are always stacked against you. Management will move the goalposts or kill your project.

      That's only true for bad managers. Good managers initially set the goalposts so far away that the clock will run out before they can be reached by the PIPed employee.

      This does, however, require some management skill and understanding of the employee being PIPed. The initial position of the goalposts has to seem reasonable to outside observers while being something that the targeted employee can't get close to in tim

  • PIP = death (Score:5, Insightful)

    by PineGreen ( 446635 ) on Thursday April 24, 2025 @11:07AM (#65327813) Homepage

    I have never ever seen anybody exiting Performance Improvement Plan (and I have seen a few) and survive with a job. The sole purpose of PIP is to shield the company / institution from being sued for wrongful dismissal.
    The moment you are on PIP you should be looking for a new job. No point even in trying, just cash in the last few salaries.

    • in the USA Now under European employee rights where you can prove where it's not your fault they can't use that as an shield.

    • by Anonymous Coward

      I have seen a few "successfully" exit. The thing is though a lot of management probably knows about it.

      Even if they do survive it, they are walking around with the taint of 'wasnt that guy on PIP a while back' anytime anything the least bit negative remotely connected to them comes up.

      I mean if you are trying to ride out your last years before retirement or know you plan to get pregnant and leave in a few months anyway or something go for it.

      Otherwise, I think PIP pretty much means better start looking for

      • "plan to get pregnant and leave in a few months anyway " In the US, although you might not get paid during FMLA leave, you should have your same medical benefits as if you were working. I wouldn't advise anyone to choose cash over medical benefits when leaving due to pregnancy, if they can avoid it.
    • Re:PIP = death (Score:4, Insightful)

      by alvinrod ( 889928 ) on Thursday April 24, 2025 @12:50PM (#65328067)
      The only times I've seen this have been for employees who had problems outside of work that were affecting their work. In one case the person have become a drug addict and basically ruined his life over it. They had been with the company for a while and were not a problem until their drug habits got out of control. Typically people who aren't performing will just be let go, but that may depend on state laws as well. I think most of it is ultimately CYA on the part of the company though.
    • Re:PIP = death (Score:4, Insightful)

      by omibus ( 116064 ) on Thursday April 24, 2025 @12:57PM (#65328095) Homepage Journal

      I have survived a PIP. I had a individual turn against me, and it was pretty clear even to HR that was what was happening. The individual was lashing out at me to cover for their own bad performance.

      That said, I immediately started job hunting and quit as soon as I had an offer.

    • Depends on the company, of course, but I have seen people remounting them.

      But they are indeed the ejector seat in case of layoffs.

      Gee, even one in the past 2-3 years might be enough to put a target on your back.
    • by spads ( 1095039 )
      I survived one. It was all basically trumped-up. I actually (uncharacteristically) spaced on the first half of it (i.e. progress reports), and then toed the line for the second half. In the end it all just went away. Like I said, it was all basically trumped-up / i.e. "squeeze".
  • by khchung ( 462899 ) on Thursday April 24, 2025 @11:13AM (#65327831) Journal

    Oh! Microsoft actually layoff people straight and clean, rather than the roundabout evil underhanded way that Google did.

    Who would have thought?

  • by Anonymous Coward

    Every time I got a job at Microsoft I had to beat 250,000 other people who had also applied to the same job. Then I was miserable and wanted to leave my team but couldn't within the same year. They wanted to keep me and I ultimately said no due to the request that I RTO, and have never looked back. I'm now much happier working fully remote as a principal for a great team. My commute is 30 seconds to the room in my home my accountant and I have Designated for tax reasons as my home office.

    If they hire some

    • If they hire somebody after saying no to 250,000 other people and they've gone through an interview process that says in general that this person is better than those other people that they said "no" to, then isn't it Microsoft's own fault when they have to fire somebody?

      Because it isn't possible to go through 250,000 people and come up with anything that says "this is the one person out of all these resumes who can do the job."

      That's why people need to network. I know that's a bad word around these parts, but it cuts through the bullshit. Potential employers will know if you are capable, both technically, and equally important, that you have interactive and social skills.

      Even though I have no plans to work any more after finishing my post-retirement work, I still netwo

  • by nealric ( 3647765 ) on Thursday April 24, 2025 @11:34AM (#65327885)

    Some people still don't get that the purpose of a PIP isn't to improve performance. The purpose of a PIP is to document poor performance so they can reduce their liability exposure when they fire you. If you get put on a PIP, you immediately start your job search because the chances of getting off the PIP are extremely low. This just removes the pretense.

    • Some people still don't get that the purpose of a PIP isn't to improve performance. The purpose of a PIP is to document poor performance so they can reduce their liability exposure when they fire you. If you get put on a PIP, you immediately start your job search because the chances of getting off the PIP are extremely low. This just removes the pretense.

      I agree. Even though "at will" protects employers, it is financially smart to avoid the possibility of a lawsuit, so if someone is underperforming, document it, and A PiP indicates a good faith effort was made.

      Now keeping in mind that it costs a fair amount of money to fire a person, then hunt for a new one and deal with any training, anyone who is terminated for performance or being disruptive almost always plays an active part in what happened.

      • In practice, a lot of "poor performance" is actually people who have a conflict with their boss for whatever reason. The boss wants them gone and then goes to HR asking to fire them. HR says they need to be put on a PIP first.

        Even with at-will employment, anybody can claim they were fired for an illegal reason (racial, gender, pregnancy, or age discrimination, whistleblower retaliation). Even if the claim has no merit, it costs money to defend a lawsuit (but a plaintiff attorney may take the case on conting

        • In practice, a lot of "poor performance" is actually people who have a conflict with their boss for whatever reason. The boss wants them gone and then goes to HR asking to fire them. HR says they need to be put on a PIP first.

          Sure. We had a guy one time who was pretty ADHD, with manifestation of getting very cranky about every 3 months. The boss had some big issues with him. I liked the guy, and could have worked with him - his biggest issue with me was he bought supplies for the department, and wasn't good for getting receipts in on time. since I did the department reconciliations, it could be a nuisance. But I could work with that.

          But the boss didn't well with him. So it was all documented. Should always be that case.

          Even with at-will employment, anybody can claim they were fired for an illegal reason (racial, gender, pregnancy, or age discrimination, whistleblower retaliation).

          That'

    • And most importantly, make your life hell so you quit instead of filing for unemployment. (Fuck Microsoft and every other company that pulls this)
  • by PPH ( 736903 ) on Thursday April 24, 2025 @11:42AM (#65327905)

    .. Brad.

  • by Sebby ( 238625 ) on Thursday April 24, 2025 @11:49AM (#65327921) Journal

    "The beatings will continue until morale improves."

  • by IWantMoreSpamPlease ( 571972 ) on Thursday April 24, 2025 @12:10PM (#65327981) Homepage Journal

    what percentage of MS employees are listed as "under performing" and are they (MS) prepared to pay if all of them leave?

  • by DrXym ( 126579 ) on Thursday April 24, 2025 @12:23PM (#65328003)

    A) GTFO or B) GTFO

    • Either way, Microsoft doesn't want to do a WARN Act layoff and signal anything to shareholders. It takes a long time to fire people for cause, so they're hoping the employees will do it for them.

      • by ameline ( 771895 )

        100% true. If you come back saying "give me 8 weeks and you'll never see me again" they'll probably come back and you'll settle on 6. As always - get a good employment lawyer to read over the severance agreement. But never sign the first offer. (Unless it's 4 months pay and you've been there under 2 years - but even then - get a lawyer to read over it - it's a contract - we (engineers) no relatively nothing of the intricacies of employment law). If you've been ther for 15 years - you should be getting 15 m

    • by ameline ( 771895 ) <ian.amelineNO@SPAMgmail.com> on Thursday April 24, 2025 @12:44PM (#65328049) Homepage Journal

      Let me expand a little bit;

      A: GTFO with 4 months severance pay, or
      B: GTFO with 2 months of micromanaged hell and no severance pay at the end of those 2 months.

      And those 4 months pay are negotiable - especially if you've been there for over 4 years. If you've been there for 2 years, take the money and don't look back.

      • by boskone ( 234014 )

        This guy has been at a corp job!

        If you even get wind that you might have a PIP coming (even if performance is good, if you have a new manager that doesn't gel with you), you should be job hunting 100% of the time you're not doing everything possible to satisfy the current leadership.

        If it gets to the point where they offer you PIP or VSA, the only reason to consider PIP would be if you have someone in another department that will hire you immediately. Since this is really hard to do (managers don't walk ar

  • by sdinfoserv ( 1793266 ) on Thursday April 24, 2025 @12:26PM (#65328011)
    Based on M$oft's recent behavior, it almost seems like the company is trying to recapture past agility and move fast in the market. The problem is huge multinational organizations just can't move fast.
    I wonder if they'll bring back "stack ranking".
  • by smooth wombat ( 796938 ) on Thursday April 24, 2025 @12:26PM (#65328013) Journal

    Everyone who worked on the 24H2 update/patch. Clearly they are incompetent and didn't bother to do even minimal testing before releasing it into the wild.

  • That means one thing: metrics.

    How many commits per day?
    How many PR comments on average?
    How many bug reports found in QA?
    How many unit test failures?
    How many lines of code?

    These are all examples of "metrics" that have been floated at my company, for gauging programmer performance. The one thing they have in common, is that they are easy to game.

    "Global consistency" is a joke, and isn't IMO even a desirable goal. Not everyone is good at the same things. Some people are faster than others, some produce better

  • According to internal documents, employees flagged as underperformers now face two options: enter a performance improvement plan with "clear expectations and a timeline for improvement" or accept a "Global Voluntary Separation Agreement" worth 16 weeks' pay.

    Without making any judgements: If I were confident in my skills but don't like the company, but I'm confident to find a job with a comparable compensation package, I'd take the 16-week pay (4 months tend to be enough to find a job if we are aggressive about it.)

    However, if I were not confident, I'd stick around and try to get through the PIP... while aggressively looking for another job and jump ship as soon as possible.

    Either way, if I were to be put in that position, it would be a sign to bail out. It

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