Essay about Microsoft Compensation and Benefit System

Words: 1646
Pages: 7
Open Document
Compensation and Benefits System of Microsoft

MGMT 365

February 23, 2014

Compensation and Benefit System of Microsoft Microsoft was founded in 1975, and is the worldwide leader in software, services, and solutions (Career). Microsoft is proud to offer great products and employ outstanding people. Previous Microsoft CEO, Steve Ballmer once said, “There are many things that are true about Microsoft. We have big goals, big dreams, and big aspirations for the future. We are both competitive with our products and in the way we attract and retain talent. For me, the most important factor is competition for talent, because I know our success comes from the people who work here” (Foley).
Listed at number 76 on Fortune Magazine’s …show more content…
Stock awards offer not only a financial incentive, but also a feeling of loyalty and ownership to the company. Microsoft became one of the first major corporations in which every employee will be eligible to become a direct owner of the company through these restricted stock units” (Microsoft).
In 2004, with decreases in revenue, Microsoft had to improve profit margin and cut costs. The employee benefit package had to be trimmed to guarantee the company’s long term success, and better align their benefits with what the competition offered, while also keeping the company ahead of the market average (Bishop). While there were only minor modifications to health care plan, “employees that choose a brand-name prescription drug when there is an FDA-approved generic equivalent will be required to make a $40 co-payment, the company will continue to cover the full cost of generic drugs and brand-name drugs that don’t have approved generic equivalents” (Bishop). The other changes made in 2004 included, decreasing the employee discount for Microsoft stock purchases from 15% to 10%, but increasing their ability to purchase stock each quarter rather than twice a year (Bishop). Employees that began at Microsoft January 1, 2004 would only accrue two weeks of vacation per year for their first two years, rather than the traditional three weeks that had previously been earned (Bishop).
Microsoft knew that
Show More

Related Documents: Essay about Microsoft Compensation and Benefit System

Essay on IngramA M1 A3

Compensation at Microsoft Compensation and Benefits – MGT420 Angela Ingram Argosy University November 5, 2014 The shift at Microsoft from stock options to performance based pay has been met with both negative and optimistic responses. It is Microsoft’s belief that the staffs that are the best performers are the most valuable to the organization. Microsoft also understands that these same employees would have the greatest opportunity to find work outside of the organization. Previously…

Words 1151 - Pages 5

Microsoft and Company Essay

Microsoft began when the ALTAIR 8800 appeared on the cover of a magazine entitled Popular Electronics, inspiring two young men Bill Gates and Paul Allen to develop BASIC language software for it. Today, Microsoft is the world’s largest software company and an undeniable force in the computing world. The products of Microsoft are used around the world, from every age to every nationality. Microsoft is the parent company of the Windows operating system, Explorer browser, the Office suite of programs…

Words 3301 - Pages 14

Microsoft Case Study Essay

HUMAN RESOURCE MANAGEMENT MICROSOFT: COMPETING ON TALENT CASE STUDY 5/09/07 Microsoft: Competing on Talent CASE STUDY OVERVIEW Microsoft has had a long standing practice of aggressively pursuing and hiring the brightest engineers in the software field. Yet by 1999 Microsoft had matured and many of its talent employees were leaving the company as documented in a Wall Street Journal article “As Microsoft Matures, Some Top Talent Chooses to Go Off Line”. The article reported…

Words 2234 - Pages 9

Essay on Human Capital in SmartBusiness Consulting Inc.

of new hires leave. As well, 43% of 26-39-year-olds expect to leave within three years. Recently, SmartBusiness Consulting Inc. has experienced a high staff turnover rate and lost 10% of their consultant. The company hopes to use some information system to better manage their human resource, find methods to automate tasks, and to extract business intelligence from the automation procedure. 2.0 BUSINESS PROCESS AUTOMATION Through the advancement in technology, business processes can be automated…

Words 1434 - Pages 6

Essay on management 117

win-win situation for both the executives and the investors. The rules of the game changed during the Clinton Administration, to curb excessive executive compensation, the Clinton Administration enacted a $1 Million limit on tax deductions for executive compensation (Partnoy 156). As a result, companies started to tie executive compensation to stock performance with stock options. It was initially thought that if the corporation’s stock performed well on the market the investor profited and so…

Words 1169 - Pages 5

What Is An HRIS System And What Does It Do?

1. What is an HRIS system and what does it do? Since the emergence of computers and their growing role in many companies, many business functions have been transformed. With many companies focusing on more revenue driven areas such as marketing and research many companies are shifting their attentions to find a better way of monitoring their human resource management. Many in turn have transformed their human resource management functions from manual workflow to computerized workflow. Because…

Words 3244 - Pages 13

Hrm Mid Essay

human resources management (HRM) plan allows businesses of any size to better understand the human resources available to them, determine what human resources they will need, decide how to best use the human resources at their disposal, and develop a system to ensure human resources needs are sufficiently covered. 1. Identify both opportunities and problems that can affect your HRM plan. Consider the business environment, upcoming projects, potential drops in revenue, and anything else that may affect…

Words 5633 - Pages 23

Sample: Microsoft and Msft Consulting Services Essay

Financial Statement Analysis of Microsoft Part 1 Summary of the economics and current conditions in the industry The industry that MSFT is mainly in is IT services and application software. This industry is dynamic and highly competitive because of the continuing technology evolution. Every company in this industry spends much on research and development and new innovative technology is the key factor drives the industry growth and change. Financial…

Words 2383 - Pages 10

Oracle Systems Corporation Essay

A Case Study: Oracle Systems Corporation EXECUTIVE SUMMARY In 1977, Lawrence J. Ellison founded System Development Laboratories to sell a database management system he had developed in a CIA project. It was only in 1982 that the company was renamed to Oracle Systems Corporation, to reflect the success of their first product, Oracle Database. Oracle used the C programming language to create its products, which was a big part of…

Words 1285 - Pages 6

Univ Phoenix HRM 531 Week 2 Group Assignment Draft JLL Essay

Caribbean market. The culture aspects, rules and laws will serve to guide the selection and execution of the task and goals by staff. BS or experience related on marketing or business. The job requires knowledge on computer software basics programs (Microsoft office). Good communication skills both languages Spanish and English. About 75% of the time should by on road and the rest 25% performing clerical task. Research and identify the possible target clients on the specifications areas established around…

Words 1537 - Pages 7