Microsoft has introduced a major change to its internal evaluation system, eliminating diversity and inclusion requirements from employee-performance assessments. The company’s earlier framework made DEI-linked actions a standard part of review discussions, encouraging leaders and teams to demonstrate measurable contributions toward inclusion goals. The revised structure marks a clear shift from that approach.
Under the new system, employees will now focus on simpler, outcome-driven goals, with security emerging as the only mandatory element across all roles. While staff may continue engaging in inclusion-related initiatives, these efforts will no longer influence performance scores, nor will employees be required to document DEI contributions as they did previously.
The update is accompanied by another significant move: Microsoft has paused the publication of its annual diversity and inclusion report. This report, long considered a transparency tool, traditionally offered insights on workforce representation, hiring patterns and progress around inclusion efforts. The company has indicated it will instead share updates through more flexible formats rather than a single comprehensive document.
Microsoft’s decision reflects a broader shift seen across several global companies that are reassessing formal DEI commitments amid changing political, regulatory and business environments. Industry observers note that removing structured reporting and mandatory evaluation criteria may make it harder for organisations to track progress consistently or maintain earlier levels of accountability.
Microsoft maintains that it remains committed to building an inclusive culture, stating that its behavioural expectations for employees continue to emphasise respect, collaboration and openness. However, the quieter repositioning of DEI within its systems has prompted conversations across the tech sector about whether voluntary efforts alone can sustain long-term progress that was once supported by clear metrics and formal oversight.
Source – https://www.hrkatha.com/news/microsoft-removes-dei-metrics-from-performance-reviews/