Microsoft Addresses Morale, Turnover

Faced with blows to worker morale, a continuing trickle of departing executives, and a sharp increase in employee attrition, Microsoft is trying to make itself a more appealing place to work. The company has taken the unusual step of granting raises and new stock options in its February review, and has instituted some policies to help reduce burnout. But Microsoft must also address nagging problems, such as a perceived lack of career opportunities and cross-departmental coordination, in order to alleviate the problem.

Employee Attrition a Growing Problem

Numerous high-level employees with more than 10 years’ experience left or announced their intention to leave in 2000. Most recently James Ewel, vice president of Server Product Management, and Thomas Koll, vice president of the Network Solutions Group, announced their departures. Other key figures to jump ship in 2000 included Platforms Group Vice President Paul Maritz, Developer Marketing and Platforms Solutions Vice President Tod Nielsen, and Chief Technology Officer Nathan Myhrvold.