Microsoft Introduces New Employee Rating System For Managers

According to documents reviewed by Business Insider, Microsoft Corp. has implemented a new employee performance rating system that is only visible to managers.

Microsoft has coined the term 'impact descriptors' for these new ratings and intends to use them to decide staff remuneration and bonuses. The tech titan emphasises that these scores should not be used as labels or shared directly to employees.

There are five descriptors: ‘Lower Impact Than Expected (LITE),’ ‘Slightly Lower Impact Than Expected (SLITE),’ ‘Successful Impact,’ and ‘Exceptional Impact.’ These evaluations are intended to assess employees' performance, growth mentality and adherence to Microsoft's cultural values.

Managers are urged to utilise these characteristics as feedback, rather than as labels or acronyms. The approach is designed to give clarity and consistency in awarding prizes and providing performance feedback.

This new grading system was implemented following a year in which Microsoft enforced a salary freeze and cut funds for incentives and stock awards. The corporation urged managers not to bring up the budget cuts during performance evaluations.