Sample Case Study on Compensation and Talent Management

Compensation and Talent Management

Job-Based Structure

Job-based structure of compensation refers to the scenario whereby salaries of employees are determined based on the analysis of the jobs they hold and the requirements of that specific job post. In the case study of Microsoft on attracting and retaining critical talent through reward segmentation, both the job-based and person based structures are used in determining salaries. The person-based structure features emphasis on the ability of the individual employee to perform and achieve excellence in a task. Much importance is given to the critical areas, and strategic compensation investment made to help the firm attract and retain the best talents in the market. The article discusses some of the strategies that Microsoft uses to attract top most talents and then retain them in the company.

The strategies employed involves revision of the of the compensations and benefits given to employees to more attractive and appealing packages. In the middle of the revision was the strategy named Microsoft one, who main aim is to reduce complexity within the global firm and to guide the company’s effort in simplifying its reward programs. The firm’s strategy of making its employees accountable for their results has seen better business result because very employee does his best to be rewarded accordingly. The pay performance strategy at Microsoft has last very long in the company, but what made it successful are the various modifications done on it in order to cater for the needs that arise with time.

However, technological advancements in the 20s crashed the long long-time reward program. Microsoft therefore re-evaluated their strategy and came up with another strategy mymicrosoft system, which was aimed at countering the technological advancements. The new strategy myMicrosoft system did not look different from the Microsoft one, but it enabled the company to have more simplified reward system. In 2013, the company made public its intention to stick to the original goals of the one Microsoft strategy.

Person Based Compensation

On the other hand, person based structure places more emphasis on the ability of an employee to accomplish a task successfully. Microsoft company employees the use of talent segmentation in determining the salaries of its employees. The segmentation is meant to identify critical areas within its areas of operation and then looking for talents with skills that would be critical for business operations of the company. After identify critical areas and talents, Microsoft then decide on the salary depending on the degree of criticality and efficiency of the employer.

One-third of all Microsoft employees are in engineering and research. This shows that the company has identified the Areas of engineering and research as the major areas, which require investment on compensation and career development to help it improve on its productivity, efficiency, and relevancy.

The hiring manager at Microsoft ensures that the hired people and college graduates who join the company are placed in area that they are more likely to succeed. The manager also ensures that the set hiring guidelines are adhered to during the hiring process. The manager is allowed to hire people who are more likely to cause huge positive impacts in the company, even if their experience on paper is low. This helps the company attract talents, which other competitors may be ignoring.

Attracting top talents from colleges is also achieved by the company becoming more appealing to the young generation. It motivates and creates excitement among its new employees. They are paid well and in time. Microsoft pays its E&R employees handsomely so that they remain in the company and help it grow.

Microsoft is successful in attracting and retaining top talents because it takes time to understand and know its employees well. This helps in provision of motivation to the employees, and minimizing attrition of the employees. Reduced attrition me