Microsoft Compensation and Benefit System

1648 Words Feb 18th, 2014 7 Pages
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…
The company has paid health club memberships for all employees, including buses run regular routes to transport employees to and from the campus to the gym (Benefits).
Microsoft offers a 401(k) plan and an Employee Stock Purchase Plan that employees are eligible for immediately. The company matches employee contributions to the 401(k) $0.50 to the $1.00 up to 6%, and all plan accounts are fully vested (Benefits). Microsoft offers Adoption Assistance which reimburses up to $5,000 per child for adoption related expenses (Benefits). The company also offers childcare discounts and family backup care for when childcare centers or schools are closed for illness or other reasons (Benefits). Microsoft also offers Tuition Assistance for business related tuition expenses.
Microsoft offers some unique perks including free soft drinks in the break rooms, well-stocked cafeterias, and on-site convenience services such as dry cleaners, post office, lunch delivery, and dinners to go (Taub). In the last 10 years, Microsoft has had to make several changes to their benefit package in order attract and retain quality employees, guarantee the company’s long term success, and to more closely align the interests of the employees and shareholders (Microsoft). The first part of these changes came in 2003, when the company began offering Stock Awards. Employees are “awarded actual shares of stock as part of their compensation, rather than options to buy
Open Document