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Internal Microsoft document hints at effort to retain AI talent

Jan 10, 2025 - businessinsider.com
Microsoft is actively working to retain its AI talent by using specialized forms that allow managers to request retention bonuses for employees deemed critical to the company's AI initiatives. These forms include specific fields to assess the impact of losing AI talent, highlighting the strategic importance of AI within the company. This move comes amid intense competition from other tech giants like Google, OpenAI, and Meta, who are also vying for top AI talent, leading to bidding wars and high compensation packages.

The emphasis on retaining AI employees is reflected in the higher compensation they receive compared to other Microsoft employees. As of September, AI group members earned significantly more, with AI software engineers making 48% more than their counterparts in other areas. This focus on AI talent retention was further underscored during a leadership crisis at OpenAI in 2023 when Microsoft CTO Kevin Scott announced plans to hire hundreds of OpenAI employees, matching their current compensation despite ongoing job cuts and a salary freeze at Microsoft.

Key takeaways:

  • Microsoft managers use forms to request retention bonuses for employees, with a specific focus on AI contributions.
  • AI employees at Microsoft earn significantly more than their colleagues, with compensation in the AI group being about 37% higher on average.
  • The addition of AI-specific questions in retention documents suggests a focus on retaining AI talent amid competitive pressures from other tech companies.
  • Microsoft has prioritized AI talent in compensation strategies, even during job cuts and a salary freeze, highlighting the importance of AI expertise to the company.
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