Retention and Recruitment Acceptance Rates Remain High

Microsoft’s success at retaining and recruiting employees remains high, despite a tight labor market and negative publicity from the antitrust suit.

According to Bob Herbold, Chief Operating Officer, employee attrition rose from 7.4% in fiscal year 1999 (FY99) to 9.6% in FY00, Microsoft’s highest attrition rate since 1994. However, this attrition rate was approximately half the software and information technology services industry average of 18.1%, which jumped substantially in 1999. Regarding recent high-profile departures, Herbold commented “this company is really good at developing people, and we have a very strong bench in terms of people moving into new jobs.” While the company wants low attrition, the departures provide “fantastic opportunities for others to continually grow.”

During FY00, employment offer acceptance rates for both college campus and non-campus hires remained strong, at 68% and 83% respectively. Both figures were down slightly from FY99, but in the middle of the range reported for the past five fiscal years.