How does microsoft treat underperformer?
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’?
From the outside it looks like they put them in charge of major products. I KID! ;-)
We’ve got PIPs too.
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.
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.
Pip is same as let go. But I've never heard of demotion. Do they also get salary cut for demotion?
Not aware of how salary works here ..
Internal transfer :P
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.
Connect=Review? and Zero rewards=Zero bonus?
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.
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.
What’s the reason for it?
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.
On the point on forced attrition, bet your sweet ass your two level up skip MSFT leadership asshat is tracking this shit. The LT will spend more time fucking around on this metric than revenue.
Depends, but it’s har to get fired.