Microsoft is considering a stricter RTO policy

Microsoft is considering a stricter policy on office attendance, and the software giant could implement this as soon as January for some employees, according to people with knowledge of the plans.

Implementation dates could vary across Microsoft’s offices, but the company is considering requiring employees at its Redmond, Washington, headquarters to work from the office more often starting in January, the people told Business Insider.

The company is still finalizing the details and had been planning to make an announcement as soon as September, the people added. They asked not to be identified discussing private matters.

Microsoft has had a flexible work policy since late 2020, letting most employees work remotely for as much as 50% of the time without approval. In practice, this policy has been much more flexible, allowing most employees to work remotely most of the time.

Now, the company is considering a new policy that requires most employees to work in the office at least three days a week, the people with knowledge of the plans told BI.

Microsoft spokesperson Frank Shaw confirmed the company is considering updating its flexible work guidelines, but said no decisions have been finalized.

Getting in line on RTO

Such a move would bring Microsoft more in line with other Big Tech companies, which have been rolling out tougher RTO policies this year.

Amazon, Microsoft’s crosstown rival, mandated a rigid RTO policy earlier this year that required employees to work in-person five days a week.

The policy Microsoft is considering would be similar to those at Meta and Google, which generally require most employees to work from offices three days a week. Some Microsoft teams, such as the Corporate, External, and Legal Affairs (CELA) group, already work in the office more than three days a week.

More pressure on employees

Cracking down on remote work is part of a broader trend in the tech industry that includes increased employee-performance pressure at Microsoft and other companies.

Microsoft’s cloud and AI boss Scott Guthrie told employees in an internal meeting last September that the company would not consider changing its flexible work policy unless there was a noticeable drop in productivity.

It’s unclear whether that’s happened, but what is clear is that Microsoft’s approach to employee performance has changed since then. The company fired thousands of employees deemed low performers this year and introduced a new performance improvement plan meant to exit low performers more quickly.

Microsoft’s top finance executive Amy Hood last week told employees in an internal memo that the upcoming year will require “intensity,” building on an earlier memo from CEO Satya Nadella asking employees for “dedication, drive, and hard work.”

Microsoft sells software that enables remote work, and has pitched hybrid work as a way to reduce costs, retain employees, and increase their productivity.

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