In the org that I’m a part of, 5% of the employees are going to be categorized as ‘not scaling’. I’m not sure what happens to this 5%. This is after management does a talent assessment of the employees. Note that this assessment is done without any self-assessment from the employees. I’d just like to say that scaling is hard to do in this org as the workload and the historic lack of support in career growth keep us pigeon holed. Management please keep this in mind as you perform your talent assessment of us. Thanks.
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Will employees be told? Unlikely. You might be able to figure it out if you don't get a yearly RSU grant when you have previously.
Will employees be made aware of whether or not they're on this list? Will they have a chance to fix whatever issue and get off the list? This seems like an ill-advised ploy to make people work harder, but what it will really do is turn people into backbiters and backstabbers. How many of your group's senior managers hail from Microsoft?
They're creating a layoff list. NOTE: this doesn't necessarily mean a layoff is coming just that they have a list of names if they need to do one.