How does microsoft treat underperformer?

Amazon foBu20
Oct 30, 2018 23 Comments

As you all know, Amazon has a terrifying ‘pip’ system that kicks tail performer every half year after the review.

What does microsoft do? Do they do annual layoff, or similar to ‘pip’?

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TOP 23 Comments
  • Illumina / Other
    Capice

    Illumina Other

    PRE
    Illumina
    Capicemore
    From the outside it looks like they put them in charge of major products.

    I KID! ;-)
    Oct 30, 2018 0
  • Microsoft Satyo
    Depends, but it’s har to get fired.
    Oct 30, 2018 0
  • Microsoft / IT
    Nomadic1

    Microsoft IT

    PRE
    US Air Force
    Nomadic1more
    Here's the inside story from someone that has been very involved in the MSFT performance Management system. Yes... Microsoft has a performance Management system that forces a 6% annual attrition rate.

    CAVEAT: Most organizations in the company are unaffected by this system. Mainly because they already have a 6% naturally occurring attrition rate.

    For the organizations that don't meet that attrition naturally we call it "forced attrition". Meaning that we have to fire the lowest 6% of workers in our area. Unfortunately many of these people meet the minimum commitments, but are just the lowest performers on the team or in the org. Forced attrition is a particularly painful process. I've been under litigation for years over this model. "You must fire someone". 😢 The attrition rate is tracked just like quota! It's just kept as very close hold information.
    Oct 30, 2018 3
    • Microsoft aesf02
      What’s the reason for it?
      Oct 30, 2018
    • Amazon foBu20
      OP
      It must be tough! Good luck to you!
      Does it hurt the rehire eligibility if an employee leaves that way?
      In Amazon, they permanently ban underperformers from being rehired. Yes you hear me right. No one in Amazon wants to believe it but every HR will tell it.
      Oct 30, 2018
    • SAP dppd
      Is this 6% at different levels, or 6% overall...
      Jan 12
  • Microsoft cout<<
    PIPs aren’t usually made official. If suddenly all of your 1:1s are being documented you might be on a PIP.

    If you get an IR (insufficient results) on a connect or zero rewards you are not allowed to transfer teams (for some period of time after getting back on track) It also means there’s a good chance you’re on your way out.
    Oct 30, 2018 2
    • Amazon foBu20
      OP
      Connect=Review?
      and Zero rewards=Zero bonus?
      Oct 30, 2018
    • Microsoft cout<<
      Teams do connects a different number of times a year. Most are somewhere between 1-4 times. Technically they don’t line up with an annual review but really that’s the written aspect that sort of aggregates up to your review. There’s a little check box a manager can check called Insufficient Results.

      Once a year we get annual review compensation. There are 2 parts cash bonus and stock. Zero rewards means you don’t get either.
      Oct 30, 2018
  • Microsoft IEjP42
    We’ve got PIPs too.
    Oct 30, 2018 3
    • Microsoft DOyu71
      Nope. We used to but not any more.
      Oct 30, 2018
    • Microsoft SeaOtter
      We still have PIPs
      Oct 30, 2018
    • Microsoft IEjP42
      Still do, I know two people on formal PIP.
      Oct 30, 2018
  • Amazon / Eng jNeo42
    I was told there are levels where you cannot stay — you move up within a few years, or you are managed out. I forget what those levels are (maybe 63 is one?). Once you’re in a career level, then you might be okay as long as you’re not flagged as a chronic underperformer in your new level. That would indicate they promoted you too early, and the best solution might be to get rid of you rather than downgrade your level and revert the promotion.
    Oct 30, 2018 2
    • Microsoft IEjP42
      I know people in 63-64 for over a decade.
      Oct 30, 2018
    • Amazon / Eng jNeo42
      I was told there a couple of levels where you need to advance or you’ll be “managed out”. I forget what they are.
      Oct 30, 2018
  • Microsoft jfDN72
    I’ve seen people let go due to underperformance, demoted due to incompatibility or disinterest.
    What is ‘pip’ ?
    The process here has been that the manager discuss and mention underperformance in their connect. Then work with the employee for next 6 months to help them grow. If after those efforts, they are not able to pick up then they are asked to leave.
    Oct 30, 2018 3
    • Microsoft Dmitri
      Pip is same as let go. But I've never heard of demotion. Do they also get salary cut for demotion?
      Oct 30, 2018
    • Microsoft jfDN72
      Not aware of how salary works here ..
      Oct 30, 2018
    • Microsoft Sexybeast
      People get demoted? God, that’s humiliating! 😱
      Oct 30, 2018
  • Microsoft blind1186
    Internal transfer :P
    Oct 30, 2018 2
    • Microsoft Dmitri
      Transfer to where? I thought you need to have good annual review to be able to do internal transfer.
      Oct 30, 2018
    • Microsoft / Eng lkjgffjk
      as long as not zero award you aren’t technically locked.
      Oct 30, 2018

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