Microsoft, being a technological company cannot do without expert technicians. The company faces the challenge of hiring the technologically best people who are in scarcity as far US is concerned. The scarcity of local workforce to fulfil the technological demands of Microsoft has been a huge challenge for the company. In order to deal with this problem , the Company holds recruitment drives in countries like India and China which are known for being rich in technically sound people and pays them hefty packages. But, the citizens of China and India often do not possess good communication skills which is again a challenge for the company.
The next major issue faced by the company relates to co-employment. Microsoft has also faced legal challenges regarding the privileges given to employees of the firm vs. the temporary workers. The most popular case that Microsoft lost concerning this issue was the Vizcaino vs. Microsoft case of employee misclassification.
Another issue talks about Criticism from employees of Microsoft in blogs, social networking sites, etc, huge segment of employee workforce at Microsoft is criticizing the firm. Employees are dissatisfied with the internal working of Microsoft. The major dissatisfaction in employees is about the cuts in compensation by the company as the profits soar. For a brand as huge as Microsoft, bad publicity happens really soon.
The major challenge which Microsoft is facing as far as employment is concerned is that of retention management. The attrition rate of employees is increasing every passing year. Microsoft is losing some of its most creative workforce to its competitors like Google, Apple, Skype (which is not owned by e Bay).In this regard, Microsoft has also sued Google for over hiring of its former employees. A
major proportion of Microsoft’s talent has been reported to join Google. This is not just a loss of talent for Microsoft, but along with this, the Company is also facing a