Microsoft:Competing for Talent
...). Applying Adam’s Theory of Equity, talented recruits bring potential and knowledge that benefits the organization in pursuing its goals while the company provides compensation and status that satisfies various individual needs (Nelson & Quick, 2005). In Microsoft’s case, a prolonged imbalance stemming from lower than average pay and long hours resulted in higher turnover among employees who had been with the company for seven or more years or held senior positions (Bartlett, 2001). Microsoft was failing to appease the different needs of employees with more experience versus the desires of new recruits. Potential solutions to the motivation problem include changes to Microsoft’s recruiting process, alterations to employee benefits to increase their valence, and the implementation of a seed fund for eligible employees to found a startup division or company. The first possible solution is significant changes to how Microsoft handles the recruitment of talent for the organization. Microsoft focused primarily on recruiting college talent for their thought processes, problem-solving abilities, and work habits through a rigorous vetting process (Bartlett, 2001). Microsoft groomed its inexperienced talent through a culling process. Despite the lack of experience, HR research found only 10% of employee development came from a formal training program (Bartlett, 2001). Bandura’s Learning Theory attributes learning to the modeling of the observed behavior of others (Nelson & Quick, 2005). This observational learning necessitates the recruitment of experienced, not raw, talent. As Microsoft and its markets mature, the composition of the types of employees needed to sustain the organization change as well. According to DeLong and Vijayaraghaven, companies need B Players to provide stability and offset Type-A personalities (DeLong & Vijayaraghavan, 2003). The need for experienced talent and a counterbalance to caffeine-driven young talent requires a shift in recruiting. Microsoft did begin to move in this direction in the 1990s by seeking talent outside of college campuses due primarily to the number of positions needing to be filled. The second possible solution for involves a change to Microsoft’s benefit package and company policies. Applying Vroom’s expectancy theory, the value one places on a reward is an important factor in motivation (Nelson & Quick, 2005). Money no longer served as a strong incentive for employees who achieved financial success through hard-work, sacrifice, and performance. Departing executives stated burnout as one of the primary reasons for leaving. Adam’s Theory of Inequity points to the need to offer benefits aimed at balancing work demands or other rewards that address the inequities leading to attrition (Nelson & Quick, 2005). Microsoft started offering sabbaticals after the exodus of executive talent had begun. Unfortunately, this fails to address the underlying problem before irreparable harm from prolonged inequity leads to the inevitable departure of experienced talent. Attempts to restore the balance include flexible work schedules, forced vacation time, and the addition of on-site amenities such as recreational facilities, banking, and health clinics. Providing employees new opportunities to achieve outside Microsoft’s changing corporate culture is the third possible solution to the motivation problem. In addition to burnout from work, exit interviews and surveys revealed ex-employees became discouraged by the bureaucracy (Bartlett, 2001). Employee growth at Microsoft to 31,575 employees worldwide in 1999 necessitated changes to corporate policies (Bartlett, 2001). This also led to more layers of management than existed when several of the disenchanted experienced leaders joined. Providing new opportunities to succeed by pursuing new ideas becomes the best possible way to reignite the passion that motivated employees to initially join Microsoft. David McClelland identified the needs for achievement, for power, and for affiliation in his studies of personality (Nelson & Quick, 2005). Layers of management at Microsoft stifled the needs for power and achievement and left a void for those driven by the need for affiliation. Seed fund to form a startup allows employees to pursue their innovative ideas and resolve a perceived inequity through rewards commensurate with achievement. Finally, leading a startup provides a strong tie between valence, expectancy, and instrumentality that serve as the foundation of Vroom’s expectancy theory (Nelson & Quick, 2005). Cost, time required for solution to show results, probable impact on the attrition rate of senior managers, and effect on acceptance rates serve as the primary criteria for evaluating the three possible solutions. The proposed change to Microsoft recruitment efforts would be inexpensive to implement but would fail to impact the motivation issues. Changing the culture through the type of employee recruited also requires an extended time period for changes to occur...