Leaked Microsoft Memo Tells Managers Not To Use Budget Cuts as Explainer for Lack of Pay Rises

An anonymous reader shares a report: Microsoft employees were already expecting lackluster pay rises. In a company-wide email sent earlier this year, the tech company's CEO Satya Nadella warned staff of salary freezes and cuts to the bonusbudget. But despite previous transparency around the cost-cutting measures, employees enquiring about how the budget cuts have impacted their performance review will now be fobbed off. According to leaked guidance, managers are being ordered to dodge such questions in the name of company culture. "It's natural for employees to ask questions about budget given the decisions shared in Satya's email," the guidance reportedly states. "However, it's most important to focus discussions with direct reports on their impact for the past fiscal year and directly tie it to their rewards." Managers should not use the budget cuts as an "explanation" for compensation decisions for individual employees and instead should emphasize that the employee's own "impact" determines "rewards." "Using budgets or factors besides the employee's impact as an explanation for an employee's rewards will erode trust and confidence within your team," the guide cautions. "Reinforce that every year offers unique opportunity for impact, and we increase our high expectations, regardless of our budget."

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