What Is Microsft Corp. "S Turnover Rate

Turnover

During the recruitment process, human resources strive to hire the right person for the job. This process accounts for a subsequent amount of time, money and energy to hire such persons. When employees leave the company for whatever reason, the company incurs a loss. “In marketing, it is said, 'the cost of acquiring new customers can cost five times more than retaining current ones.' This concept can be applied to employees as well.” (Johnson, 2011) For many companies it is more cost effective to attempt to retain an employee than acquiring new ones. “Microsoft's annual attrition rate rose one percentage point from fiscal 2003 to 2004, it's still just 9%, a bit lower than the industry average. Microsoft says it receives 45,000 to 60,000 job applications a month, and over 90% of the people offered jobs accept.” (Greene, 2005)

Most persons leave their work for reasons other than money. Microsoft is unique because many of its factors are derived from its company culture, size and reputation. Microsoft is faced with the challenge of making their corporation a better place to work. In 2001, Microsoft addressed its reasons for its employee turnover rate. The employees at Microsoft are faced with low work morale, burnout, a perceived lack of career opportunity, lack of companywide coordination, stock opportunities and compensation.

At Microsoft, like many technology companies, the employees basically live there; they work long hours every day of the week. Work and life conflicts is a problem for employees that have worked there from in their twenties, for more than ten dedicated years, that now are interested in a family and personal life. “Microsoft has made some progress addressing work-life balance. In 2000, the company instituted a ‘partnership program’ for top executives and software developers, removing caps on vacation time.” (Anonymous, 2001) Due to the company’s culture Microsoft’s Human Resources encourages three-day weekends. The employees are in...