Microsoft is experiencing an uptick in positive employee sentiment, according to the most recent internal survey. The survey, conducted in October 2024, revealed that 65% of the workforce agrees with the statement: “There is a reasonable balance between what I contribute to Microsoft and what I get in return.” This marks an improvement.
This specific question is used by Microsoft to gauge employee perceptions of work-life balance and overall compensation. The results suggest that Microsoft is succeeding in its efforts to improve employee morale.
According to a report by Business Insider, a Microsoft spokesperson noted that the latest survey results represent a 3% increase compared to the survey conducted six months prior. The previous survey, taken in the summer, showed a year-over-year decrease in positive responses on the same question, dropping from 69% to 62%.
These survey results highlight the importance of this recent positive shift in employee morale.
In 2022, a downturn in scores on this key question prompted Microsoft to increase pay. This move, according to reports, was made to address concerns about compensation and proactively reduce employee departures to competitors, such as Amazon.
Since that time, the tech industry has experienced considerable change. The boom experienced during the pandemic subsided, and subsequently tech stocks declined in 2022. This led many companies to place a renewed focus on improving efficiency, with investors putting greater emphasis on profitability versus continual expansion. Additionally, the emergence of new AI tools may also be contributing to a reduction in demand for certain tech roles.
In 2023, Microsoft implemented a salary freeze. The upcoming survey, scheduled for April, will follow Microsoft’s decision to lay off roughly 2,000 employees who were identified as underperformers. The company is also introducing updates to its performance review process, which reflects a shift toward a stricter approach to employee management after several years of relatively lenient practices.
