How does Microsoft motivate their employees? Is it working?
Microsoft motivates their employees using both intrinsic rewards and extrinsic incentives (Herzberg, 7). The work itself as well as the potential outcomes is strong intrinsic motivators, employees feel that they are making a difference and are a part of something bigger than themselves. Microsoft’s preference of hiring team members straight out of college and developing them promotes a culture of growth and advancement. Promoting from within is not only a cost effective idea, but is a strong performance motivator (Bolman and Deal, 146), the employees know what level of performance and development they need to maintain to achieve this and are more than happy to put the extra hours in to do so.
The extrinsic incentives are also supportive of this fast paced, highly engaged culture. Microsoft is aware that they need to invest in their employees and give them more than just the basic office supplies to have continued long-term success (Bolman and Deal, 140). By providing them many resources on campus, they remained engaged at work full time. There are many similarities between a college campus and dorm room to the Microsoft campus and offices, this fits in perfectly with their target recruiting demographic.
Overall statistically it would appear that these strategies are working by comparing the attrition rate at Microsoft to that of its industry, but the people they are losing are likely to be some of the most valuable. A schedule that works for a recent college graduate, may not be feasible for someone middle aged with a family; this could be costing them hard to replace senior leaders. The motivation is no longer there for someone whose priorities have shifted to their personal life and family, especially those who have already become financially secure. Clearly their motivation works, just not for everyone.
Analyzing this case from a HR Frame perspective, what are the critical issues...
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