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Microsoft plans to overhaul its performance-review system for employees and make a series of additional changes -- including new perks on the Redmond campus -- in an effort to address some of the biggest complaints from its work force. Microsoft HR chief Lisa Brummel announced the initiative, dubbed "myMicrosoft," Thursday afternoon at an internal "town hall" employee meeting attended by CEO Steve Ballmer and others.
And yes, the company is restoring the discontinued towel service, a previous cutback that became a lightning rod for employee dissatisfaction and bemusement over Microsoft's cost-cutting initiatives. That particular announcement today received an especially boisterous response during the meeting, according to people who were there. Among other things, the company will be expanding food service options on campus.
See this story for more details on the changes.
Also see the comments on this Mini-Microsoft blog post to get a sense for the employee reaction. Mini himself calls it "a good start." (For the uninitiated, Mini-Microsoft is an anonymous employee blogger who has called for reforms in the performance-review system, among other things.)
A few quotes from the memo in which Brummel outlined the changes:
"To reset our approach, beginning with this review period we are retiring the 2.5-5.0 rating scale and introducing a three point Commitment Rating scale of Exceeded, Achieved and Underperformed. ... There will be no forced distribution (i.e. curve) associated with this commitment rating, which allows managers and employees to have a more candid discussion about performance." "We are increasing our investment in our annual review stock award program. This incremental investment is focused on providing meaningful stock awards to our top talent. 'Top talent' refers to employees who are strong performers, achieve results in the right way and are expected to make the greatest future contributions." "We're planning to provide on-campus access to a variety of services, including laundry and dry cleaning, grocery delivery from Safeway and opening convenience stores -- all of which are designed to ease the burden given the hectic pace of life. We will expand and upgrade dining services adding great new retail food in select cafes, dinners to go from Wolfgang Puck and other services. We are also arranging discounts on a variety of home services including house keeping, yard care, pet care, auto services and more."
And finally, a reality check: While Microsoft might compare employee perks to those at Google and others in the tech world, it's worth noting that all of this seems a bit over-the-top and extravagant to some people at other companies. After previous stories on Microsoft employees protesting cutbacks, I received multiple calls from Boeing workers (some of them Microsoft shareholders) who couldn't believe the perks the Microsoft employees had in the first place.
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Microsoft, you really need to start looking for revenue elsewhere. Resorting to bribing users to use your products and services is just plain embarrassing.
-- Reader on Microsoft offers 'perks' to search users
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Posted by John Bailo at 5/19/06 8:49 a.m.
So, after 20 years of purging the intelligensia from MS, the Red-Yellow-Blue&Green Guard sees the results: Failing stock prices, migration to Google, and loss of dominance from Finish inventors.
But those towels won't bring the brain trust back -- they've long since committed to other avenues.