Microsoft is getting tougher on employees, and this 'ban' is proof
Microsoft CEO Satya Nadella
Microsoft
has implemented a new two-year rehire ban for employees forced out due to performance issues, signaling a significant shift in the company's approach to workforce management. According to internal documents viewed by Business Insider, the tech giant is also categorizing these departures as "
good attrition
,"essentially labeling certain employee exits as beneficial for the company.
This policy shift indicates Microsoft is deliberately tightening its internal standards, implementing formal mechanisms to prevent the return of employees whose performance didn't meet expectations, something the company had historically approached with more flexibility.
"Good attrition" metric tracks desirable employee departures
The newly introduced "good attrition" metric, similar to Amazon's controversial "unregretted attrition" approach, allows Microsoft to track and even celebrate the departure of employees it's happy to see leave. Business Insider reports that while specific targets for this metric haven't been established, it's already being reviewed at the executive level.
This approach signals Microsoft's intent to more aggressively manage out underperformers while preventing their return to the company—a strategy that aligns with Meta's practice of maintaining internal "do not rehire" lists.
Microsoft revamps performance management system
Microsoft is fundamentally restructuring its approach to performance management. Earlier this year, the company terminated 2,000 employees deemed underperformers without severance and implemented a new performance improvement plan (PIP) with what internal documents describe as "globally consistent" standards featuring "clear expectations and a timeline for improvement."
According to Business Insider's reporting, Microsoft employees facing performance issues now face a stark choice: enter the company's PIP program or accept a "Global Voluntary Separation Agreement" that includes a payout equal to 16 weeks of salary.
These changes mark a significant departure from Microsoft's previous management philosophy under CEO
Satya Nadella
, suggesting the company is moving away from its more employee-friendly reputation as it intensifies focus on efficiency and high performance metrics, similar to its industry peers, like Amazon and Meta.
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