Microsoft will give all employees a pay rise

SOFTWARE HOUSE Microsoft will give all its employees a raise and convert some of their stock options into cash as it tries to hold onto staff.

Microsoft, like many technology firms, is in a constant battle to attract and retain staff and the most obvious way to do that is to increase pay. Microsoft's CEO Steve Ballmer recently sent a memo to the firm's rank and file announcing across the board pay rises, with those in highly competitive positions set to receive even better remuneration.

Aside from better pay Ballmer also announced that Microsoft will liquidate some of the stock options given to employees, giving them "more cash up front and incremental employee value". Ballmer also tackled Microsoft's employee performance review program, saying that the firm will move to a "single performance rating with clear rewards".

Microsoft isn't the only company fighting to attract and retain the brightest talent in the industry. Last year Google announced a 10 per cent pay rise for all employees in a bid to remain attractive in the job market, and more recently it tied bonuses to success in the social notworking market.

In recent years technology startups that have yet to float on the stock market have become popular places to work. Up and coming firms such as Facebook and Twitter are attractive to job hunters not just due to novel and exciting products but the opportunity to retire on the back of the firm's initial public offering or being bought out by one of the big outfits such as Microsoft or Google.

Ballmer certainly is doing his best to try to drum up some enthusiasm among his troops, saying, "Through our history, we have been THE place people came when they wanted to make a difference in the world through software, hardware and services. This is as true today as it has been at any time in our history, and the changes we're rolling out today will help ensure Microsoft continues to be the place that top talent comes to change the world."

Aside from the 1980s when it created lots of so-called Microsoft-millionaires, it's hard to think that Microsoft was ever the first place where hardcore technologists sought employment.

For Microsoft, pay might not be enough to attract new employees because it needs to reinvent itself as a company that is developing products and services that are seen as cool and cutting edge. Nevertheless, in this economic climate it's unlikely that Microsoft's employees will be particularly unhappy about receiving a pay rise. µ