Google and Microsoft are implementing revised performance evaluation frameworks, prioritizing AI investments over broad employee rewards. Google's new GRAD system expands top ratings but reduces bonuses for "Significant Impact" and "Moderate Impact" employees. Similarly, Microsoft has eliminated DEI from assessments, focusing on security contributions, which recently led to layoffs of 2,300 staff. Analysts suggest these changes serve dual purposes: boosting accountability and subtly shrinking the workforce, reflecting a shift towards prioritizing measurable results in a competitive landscape.
Google and Microsoft are implementing revised performance evaluation frameworks, prioritizing AI investments over broad employee rewards. Google's new GRAD system expands top ratings but reduces bonuses for "Significant Impact" and "Moderate Impact" employees. Similarly, Microsoft has eliminated DEI from assessments, focusing on security contributions, which recently led to layoffs of 2,300 staff. Analysts suggest these changes serve dual purposes: boosting accountability and subtly shrinking the workforce, reflecting a shift towards prioritizing measurable results in a competitive landscape.