Internal Microsoft document shows one way managers decide which employees they can't afford to lose — and it's all about AI
- Microsoft managers use forms to request retention bonuses for employees they can't afford to lose.
- One such document, viewed by BI, includes a field specific to employees' AI contributions.
- Microsoft AI employees earn much more than their colleagues, according to payroll data viewed by BI.
Some managers at Microsoft may be trying harder to retain talented employees with AI know-how, according to an internal document viewed by Business Insider.
Microsoft managers can request retention bonuses for employees they feel they can't afford to lose. The process involves filling out forms that include questions such as, "What harm is done if employee leaves Microsoft?"
The document viewed by BI showed a new field focusing on employee contributions in artificial intelligence.
"In the context of AI transformation as a key priority, please indicate if this individual is critical AI talent and share the risk to the AI initiative/s if talent is not retained," the document tells Microsoft managers.
The refreshed document was prepared for a specific, large group inside Microsoft. However, it's unclear whether the AI question is being added to similar retention documents in other parts of the company.
A Microsoft spokesperson said that the company did not have a central form for special stock and cash-award requests and that organizations and teams could choose whether to add different fields, depending on their strategic priorities.
Still, the addition of the AI question to this specific document suggests that the AI talent wars may be pushing some parts of Microsoft to do more to prevent poaching by rivals.
Google, OpenAI, Meta, and other tech companies are racing to develop the most powerful AI models and the best generative-AI tools, and they need employees who know the technical details of how to craft these products. That's caused bidding wars for some talent, along with multimillion-dollar compensation packages sometimes.
Higher pay for AI talent
Microsoft has already prioritized AI talent when it comes to compensation.
As of September, the average compensation in Microsoft's AI group was about 37% higher than the average for all the company's US employees. Software engineers working in AI, for example, earned 48% more than the average software engineer at the company, according to a payroll spreadsheet shared with BI.
In 2023, during a leadership crisis at OpenAI, Microsoft's chief technology officer, Kevin Scott, said the software giant would hire hundreds of OpenAI employees and match their compensation.
He made the announcement in the middle of job cuts and a salary freeze at Microsoft, which made some employees furious.
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