Microsoft Corporation (NASDAQ: MSFT) is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions. Established on April 4, 1975 to develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems. Microsoft would also come to dominate the office suite market with Microsoft Office. The company has diversified in recent years into the video game industry with the Xbox and its successor, the Xbox 360 as well as into the consumer electronics and digital services market with Zune, MSN and the Windows Phone OS. The ensuing rise of stock in the company's 1986 initial public offering (IPO) made an estimated four billionaires and 12,000 millionaires from Microsoft employees. In May 2011, Microsoft Corporation acquired Skype Communications for $8.5 billion dollars.[1]
Primarily in the 1990s, critics contend Microsoft used monopolistic business practices and anti-competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its software, and used misrepresentative marketing tactics; both the U.S. Department of Justice and European Commission found the company in violation of antitrust laws. Known for its interviewing process with obscure questions, various studies and ratings were generally favorable to Microsoft's diversity within the company as well as its overall environmental impact with the exception of the electronics portion of the business.
Benefits play an important role in your choice of an employer. That’s why we work hard to make sure our benefits reflect the changing needs and wants of our people, and it’s why we provide many industry-leading benefits to our employees who rely on them. Our goal is to empower you with the resources, incentives, and flexibility you need to enjoy success on the job and to live a healthy, balanced life.
Microsoft is widely recognized as a leading company for offering one of the strongest and most comprehensive compensation and benefits packages in the country. We start with competitive pay, bonuses, and stock awards to eligible employees based on individual performance. Then we add on unique offerings that might surprise you. Here’s a bird’s-eye view.
Health and Wellness
We provide comprehensive healthcare coverage for you and your eligible dependents. Plus we offer dental and vision coverage, on-site health screenings, health club memberships or discounts, programs to manage chronic health conditions and quit smoking, access to a 24-hour health-line, as well as office ergonomics resources and tools. Microsoft is also the first major corporation to offer a benefit for autism therapy, providing coverage for Applied Behavioral Analysis (ABA) therapy through Certified Autism Providers.
Family and Parenting
Your family will enjoy a wide range of benefits, including adoption fee assistance, maternity leave, paid time off for new moms and dads, and discounts on child-care services. If you have a breakdown in your regular child-care arrangements, take advantage of backup care that provides temporary center-based or in-home care services.
Investing
We provide a 401(k) plan that includes a company match on contributions and an employee stock purchase program that allows employees to purchase shares of Microsoft stock at a discount. Our Microsoft Employee Financial Education Program provides objective information to help employees make informed decisions and create a financially fit portfolio.
Giving Together
We love giving to our communities and to causes that our employees care most about. We match the dollars you contribute to eligible charities or educational institutions, offering a match of up to $12,000 per calendar year. And when you contribute your time, we’ll donate $17 per hour to the eligible organization you serve.
Learning and Development
We encourage constant learning so you can stay sharp. Take advantage of our business-related tuition assistance for undergraduate or graduate coursework. Or engage in any of over 2,000 internal training programs taught by instructors from leading educational institutions that are offered online, virtually, or in classrooms around the globe. You can’t beat the level of investment we place on career development.
Perks
Compensation: With all you’re going to learn and all the new friends you’ll make, it may sound crazy, but we’re going to pay you too. And pay you well. We offer highly competitive salaries and annual performance-based bonuses. In addition, you may be eligible to earn Microsoft stock.
Healthcare: Microsoft takes no shortcuts with employees‘ health. That means no small print—just straightforward coverage of medical care and hospitalization. We also offer vision and dental care options, a 24-hour health care line and even free physician house calls.
On-campus Amenities: Work and play at the campus social hub, The Commons, which offers a salon and mini-day spa, mail center, bank and 11 different restaurants. Spend your free time browsing our retail shops for the latest bike and ski gear. Join in a pickup soccer, basketball or cricket game on our sports fields. Play an impromptu round of Xbox with co-workers. Enjoy all of the free soda, juice and milk you can drink—and Starbucks coffee to kick-start your day.
Discounts: Enjoy substantial savings on Microsoft products through our company store. Take advantage of tons of lifestyle discounts around town with the Microsoft Prime Program.
Flexibility: Whether you are an early bird or a late riser, flexible work hours allow you to work when you are at your best. Our dress code is simple: you have your own style, we expect you to bring it.
Stay Fit: We offer membership to two full-service gyms, one right next to the Redmond campus and one with multiple locations throughout the Puget Sound area. Or, we offer dollars in your pocket to spend on your own plan to stay fit.
Time off: Enjoy 15 paid vacation days, 10 paid sick-leave days and 8 paid US holidays, plus two personal days to call your own each year.
Microsoft Corp., renowned for its industry-leading employee benefits, plans to scale back in some areas as part of a broader effort to cut costs and improve its profit margin even as revenue growth slows.
Don't worry, the soft drinks in the break rooms are still free.
But the company yesterday said it will reduce the discount employees receive when they buy Microsoft stock, shrink the window in which they can take their four weeks of paid parental leave, require a co-payment when they choose brand-name prescription drugs over approved generic equivalents and trim the vacation time received by new hires.
"These benefit changes will significantly reduce our operating costs, and -- as part of Microsoft's overall cost-efficacy initiative -- help increase the long-term value of the company," wrote Ken DiPietro, corporate vice president of human resources, in a memo to employees. "They also better align our benefits with those of our competition while still keeping us ahead of the market average."
The company has long touted its benefits package as the best in the high-tech industry, and most of the items on the long list -- ranging from the 401(k) matching program to full medical coverage to free health-club membership -- remain unchanged despite the latest adjustments.
But one labor leader said he sees in the move a sign of things to come.
"This is just the tip of the iceberg of what Microsoft employees are going to face in the next few years in light of the company's continued shift toward a more globalized work force," said Marcus Courtney, president of WashTech, which wants to organize Microsoft employees. "If they had union representation, management would have to negotiate with the union before it could implement these unilateral changes."
An employee survey conducted for Microsoft last year by consulting firm Towers Perrin asked if employees were generally "willing to share in health care costs" through increased deductibles, co-payments or higher payroll contributions. Courtney cited the survey as evidence that the company has been contemplating broader changes.
This week's announcement is the second time in less than a year that the company has changed elements of the package it offers employees. Microsoft last year began awarding employees actual shares of stock as part of their compensation, rather than options to buy shares, as it had previously.
Many employees welcomed that change, which resulted in more financial certainty.
The benefits changes were announced to employees late Tuesday. Cecily Hall, Microsoft's director of U.S. benefits, said it's too early to know how employees will react, but she said she believes they will see it as the right thing for them, the company and shareholders.
"What we've done is made some minor modifications to our benefits plan, but we really feel like most of them still offer a lot of choice and flexibility, and these changes will continue to preserve what really is a premier benefits package," she said. "We're being fiscally responsible while still working to provide the best package that we can."
A summary of the changes:
Effective July 1, employees will be able to buy Microsoft stock at a 10 percent discount through Microsoft's Employee Stock Purchase Plan, compared with the current 15 percent discount. Employees will also be able to buy stock through the plan each quarter, rather than twice a year, as is the case now. (That plan is separate from the stock-award program that replaced the option program.)
Starting Jan. 1, employees who choose a brand-name prescription drug when there is an FDA-approved generic equivalent will be required to make a $40 co-payment. The company will continue to cover the full cost of generic drugs and brand-name drugs that don't have approved generic equivalents.
Beginning Jan. 1, new employees will accrue two weeks of vacation per year for the first two years they work at the company, compared with the existing three weeks.
Starting Jan. 1, employees will need to take their four weeks of paid parental leave (which comes in addition to eight weeks of unpaid leave) within six months of a child's birth or adoption. Currently, they need to take the paid leave within 12 months. The amount of paid leave won't change.
Microsoft declined to detail the overall savings it expects from the changes. The decision resulted from the company's regular review of its benefits program, Hall said.
John Connors, the company's chief financial officer, told financial analysts last month that Microsoft is seeking to keep its operating expenses essentially the same in the next fiscal year -- about $22 billion -- as in the current one. As part of the effort, Microsoft is also cutting back on travel, entertainment and other areas of discretionary spending.
The cuts will help keep the company's profit margin rising even if revenue growth slows. Microsoft is forecasting less than 5 percent revenue growth in fiscal 2005, down from 13 percent or 14 percent growth this fiscal year, although the company regularly beats its forecasts.
It would have been more difficult for the company to trim its benefits in the days of the dot-com boom, when many employees were being lured by Internet companies. But things are different today, said software industry analyst Dwight Davis, vice president with Summit Strategies Inc.
"Microsoft probably has a bit more freedom to do this kind of cost control and cut back a bit on its benefits package because it can offer the prospect of stability," he said. "In today's world, that's a pretty important perk."
Benefits/Compensation
On the one hand, I'm making more money now than at any other point in my life, and I have all I need — so perhaps I should be satisfied and leave it at that. Overall, I think Microsoft's compensation and benefits package are still above average for the industry, and well above average for the typical American worker.
On the other hand, I and my coworkers have watched many benefits erode or disappear during the past five years. It's public knowledge that raises and annual bonuses have diminished, option grants have been replaced with stock awards, employee stock purchase plan benefits have decreased, and cafeteria and company store prices have increased. For new employees, vacation time has been cut from three weeks to two, and new parents have to take their parental leave within 6 months instead of 12. It's not a positive trend.
Primarily in the 1990s, critics contend Microsoft used monopolistic business practices and anti-competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its software, and used misrepresentative marketing tactics; both the U.S. Department of Justice and European Commission found the company in violation of antitrust laws. Known for its interviewing process with obscure questions, various studies and ratings were generally favorable to Microsoft's diversity within the company as well as its overall environmental impact with the exception of the electronics portion of the business.
Benefits play an important role in your choice of an employer. That’s why we work hard to make sure our benefits reflect the changing needs and wants of our people, and it’s why we provide many industry-leading benefits to our employees who rely on them. Our goal is to empower you with the resources, incentives, and flexibility you need to enjoy success on the job and to live a healthy, balanced life.
Microsoft is widely recognized as a leading company for offering one of the strongest and most comprehensive compensation and benefits packages in the country. We start with competitive pay, bonuses, and stock awards to eligible employees based on individual performance. Then we add on unique offerings that might surprise you. Here’s a bird’s-eye view.
Health and Wellness
We provide comprehensive healthcare coverage for you and your eligible dependents. Plus we offer dental and vision coverage, on-site health screenings, health club memberships or discounts, programs to manage chronic health conditions and quit smoking, access to a 24-hour health-line, as well as office ergonomics resources and tools. Microsoft is also the first major corporation to offer a benefit for autism therapy, providing coverage for Applied Behavioral Analysis (ABA) therapy through Certified Autism Providers.
Family and Parenting
Your family will enjoy a wide range of benefits, including adoption fee assistance, maternity leave, paid time off for new moms and dads, and discounts on child-care services. If you have a breakdown in your regular child-care arrangements, take advantage of backup care that provides temporary center-based or in-home care services.
Investing
We provide a 401(k) plan that includes a company match on contributions and an employee stock purchase program that allows employees to purchase shares of Microsoft stock at a discount. Our Microsoft Employee Financial Education Program provides objective information to help employees make informed decisions and create a financially fit portfolio.
Giving Together
We love giving to our communities and to causes that our employees care most about. We match the dollars you contribute to eligible charities or educational institutions, offering a match of up to $12,000 per calendar year. And when you contribute your time, we’ll donate $17 per hour to the eligible organization you serve.
Learning and Development
We encourage constant learning so you can stay sharp. Take advantage of our business-related tuition assistance for undergraduate or graduate coursework. Or engage in any of over 2,000 internal training programs taught by instructors from leading educational institutions that are offered online, virtually, or in classrooms around the globe. You can’t beat the level of investment we place on career development.
Perks
Compensation: With all you’re going to learn and all the new friends you’ll make, it may sound crazy, but we’re going to pay you too. And pay you well. We offer highly competitive salaries and annual performance-based bonuses. In addition, you may be eligible to earn Microsoft stock.
Healthcare: Microsoft takes no shortcuts with employees‘ health. That means no small print—just straightforward coverage of medical care and hospitalization. We also offer vision and dental care options, a 24-hour health care line and even free physician house calls.
On-campus Amenities: Work and play at the campus social hub, The Commons, which offers a salon and mini-day spa, mail center, bank and 11 different restaurants. Spend your free time browsing our retail shops for the latest bike and ski gear. Join in a pickup soccer, basketball or cricket game on our sports fields. Play an impromptu round of Xbox with co-workers. Enjoy all of the free soda, juice and milk you can drink—and Starbucks coffee to kick-start your day.
Discounts: Enjoy substantial savings on Microsoft products through our company store. Take advantage of tons of lifestyle discounts around town with the Microsoft Prime Program.
Flexibility: Whether you are an early bird or a late riser, flexible work hours allow you to work when you are at your best. Our dress code is simple: you have your own style, we expect you to bring it.
Stay Fit: We offer membership to two full-service gyms, one right next to the Redmond campus and one with multiple locations throughout the Puget Sound area. Or, we offer dollars in your pocket to spend on your own plan to stay fit.
Time off: Enjoy 15 paid vacation days, 10 paid sick-leave days and 8 paid US holidays, plus two personal days to call your own each year.
Microsoft Corp., renowned for its industry-leading employee benefits, plans to scale back in some areas as part of a broader effort to cut costs and improve its profit margin even as revenue growth slows.
Don't worry, the soft drinks in the break rooms are still free.
But the company yesterday said it will reduce the discount employees receive when they buy Microsoft stock, shrink the window in which they can take their four weeks of paid parental leave, require a co-payment when they choose brand-name prescription drugs over approved generic equivalents and trim the vacation time received by new hires.
"These benefit changes will significantly reduce our operating costs, and -- as part of Microsoft's overall cost-efficacy initiative -- help increase the long-term value of the company," wrote Ken DiPietro, corporate vice president of human resources, in a memo to employees. "They also better align our benefits with those of our competition while still keeping us ahead of the market average."
The company has long touted its benefits package as the best in the high-tech industry, and most of the items on the long list -- ranging from the 401(k) matching program to full medical coverage to free health-club membership -- remain unchanged despite the latest adjustments.
But one labor leader said he sees in the move a sign of things to come.
"This is just the tip of the iceberg of what Microsoft employees are going to face in the next few years in light of the company's continued shift toward a more globalized work force," said Marcus Courtney, president of WashTech, which wants to organize Microsoft employees. "If they had union representation, management would have to negotiate with the union before it could implement these unilateral changes."
An employee survey conducted for Microsoft last year by consulting firm Towers Perrin asked if employees were generally "willing to share in health care costs" through increased deductibles, co-payments or higher payroll contributions. Courtney cited the survey as evidence that the company has been contemplating broader changes.
This week's announcement is the second time in less than a year that the company has changed elements of the package it offers employees. Microsoft last year began awarding employees actual shares of stock as part of their compensation, rather than options to buy shares, as it had previously.
Many employees welcomed that change, which resulted in more financial certainty.
The benefits changes were announced to employees late Tuesday. Cecily Hall, Microsoft's director of U.S. benefits, said it's too early to know how employees will react, but she said she believes they will see it as the right thing for them, the company and shareholders.
"What we've done is made some minor modifications to our benefits plan, but we really feel like most of them still offer a lot of choice and flexibility, and these changes will continue to preserve what really is a premier benefits package," she said. "We're being fiscally responsible while still working to provide the best package that we can."
A summary of the changes:
Effective July 1, employees will be able to buy Microsoft stock at a 10 percent discount through Microsoft's Employee Stock Purchase Plan, compared with the current 15 percent discount. Employees will also be able to buy stock through the plan each quarter, rather than twice a year, as is the case now. (That plan is separate from the stock-award program that replaced the option program.)
Starting Jan. 1, employees who choose a brand-name prescription drug when there is an FDA-approved generic equivalent will be required to make a $40 co-payment. The company will continue to cover the full cost of generic drugs and brand-name drugs that don't have approved generic equivalents.
Beginning Jan. 1, new employees will accrue two weeks of vacation per year for the first two years they work at the company, compared with the existing three weeks.
Starting Jan. 1, employees will need to take their four weeks of paid parental leave (which comes in addition to eight weeks of unpaid leave) within six months of a child's birth or adoption. Currently, they need to take the paid leave within 12 months. The amount of paid leave won't change.
Microsoft declined to detail the overall savings it expects from the changes. The decision resulted from the company's regular review of its benefits program, Hall said.
John Connors, the company's chief financial officer, told financial analysts last month that Microsoft is seeking to keep its operating expenses essentially the same in the next fiscal year -- about $22 billion -- as in the current one. As part of the effort, Microsoft is also cutting back on travel, entertainment and other areas of discretionary spending.
The cuts will help keep the company's profit margin rising even if revenue growth slows. Microsoft is forecasting less than 5 percent revenue growth in fiscal 2005, down from 13 percent or 14 percent growth this fiscal year, although the company regularly beats its forecasts.
It would have been more difficult for the company to trim its benefits in the days of the dot-com boom, when many employees were being lured by Internet companies. But things are different today, said software industry analyst Dwight Davis, vice president with Summit Strategies Inc.
"Microsoft probably has a bit more freedom to do this kind of cost control and cut back a bit on its benefits package because it can offer the prospect of stability," he said. "In today's world, that's a pretty important perk."
Benefits/Compensation
On the one hand, I'm making more money now than at any other point in my life, and I have all I need — so perhaps I should be satisfied and leave it at that. Overall, I think Microsoft's compensation and benefits package are still above average for the industry, and well above average for the typical American worker.
On the other hand, I and my coworkers have watched many benefits erode or disappear during the past five years. It's public knowledge that raises and annual bonuses have diminished, option grants have been replaced with stock awards, employee stock purchase plan benefits have decreased, and cafeteria and company store prices have increased. For new employees, vacation time has been cut from three weeks to two, and new parents have to take their parental leave within 6 months instead of 12. It's not a positive trend.
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