Google and Microsoft Revamp Employee Appraisal Systems

Google and Microsoft have recently updated their employee appraisal systems, focusing on performance-based evaluations. These changes may lead to lower bonuses for some employees while rewarding high performers. At Google, entry-level software engineers start with a salary of 10 lakhs, while Microsoft offers various roles with salaries ranging from 2.2 to 4.0 lakhs. The appraisal increments can vary significantly, making it crucial for employees to understand their performance ratings. Read on to learn more about these significant changes in the tech industry.

By Ambika Singh Jan 2, 2026, 10:01 IST

Changes in Performance Reviews

Major tech firms like Google and Microsoft conduct annual performance evaluations. These assessments are performance-driven; employees who excel receive commendable appraisals, while those who underperform may not see significant recognition. Recently, Google revised its employee evaluation framework, emphasizing that only top performers will be eligible for favorable appraisals.

Impact of Google's New Appraisal Policy

The adjustments made by Google could lead to some employees receiving reduced bonuses and equity packages starting in 2026. Nevertheless, the company assures that high achievers will be adequately rewarded. Employees rated in the mid to lower performance tiers will not benefit from substantial appraisals. Similarly, Microsoft follows a comparable appraisal strategy, rewarding its high-performing staff with appraisals and equity.

Annual Salary Increases at Google and Microsoft

At Google, entry-level software engineers begin with a salary package of 10 lakhs. Microsoft offers a diverse range of 67 job roles for freshers, with salaries varying based on experience. Typically, starting salaries at Microsoft range from 2.2 to 4.0 lakhs annually.

Employees are classified according to their appraisal ratings, with those receiving higher ratings enjoying better appraisals. Generally, appraisal increments in these companies range from a minimum of 8 percent to as high as 30 percent.