Microsoft is apparently handing out big bonuses to prevent poaching of AI talent
Cutting corners: Artificial intelligence is undoubtedly the hottest topic in tech right now. For Big Tech companies, securing top talent for their AI teams is critical. It’s no surprise, then, that Microsoft is pulling out all the stops to make sure their talent doesn’t get poached by rivals.
An internal Microsoft document obtained by Business Insider sheds some light on how the company is ramping up efforts to retain key AI employees.
Managers at Microsoft can request retention bonuses and special compensation packages for employees they deem essential to the company’s AI initiatives. These forms include sections asking managers to assess the potential harm to AI projects if the individual were to leave.
A notable addition to the process is a field specifically addressing the employee’s contributions to AI development. Managers must indicate whether the individual qualifies as “critical AI talent” and explain the risks to Microsoft’s AI projects if that person isn’t retained.
Internal data shows that AI teams were largely insulated from recent layoffs, whereas other groups, such as Azure, were more affected.
“In the context of AI transformation as a key priority, please indicate if this individual is critical AI talent and share the risk to the AI initiative/s if talent is not retained,” reads the document. Business Insider notes that this requirement appears in forms for a specific, large group at Microsoft, though it’s possible the approach will be expanded company-wide.
But read between the lines, and it’s clear AI has shot to the very top of Microsoft’s list when it comes to hanging onto talent. Previous leaks showed that the average pay for an AI software engineer topped $377,000 – about $120,000 higher than Azure engineers.
The prioritization of AI talent has also influenced the company’s approach to performance-based layoffs. Internal data shows that AI teams were largely insulated from recent layoffs, whereas other groups, such as Azure, were more affected.
Microsoft’s Chief Technology Officer, Kevin Scott, even pledged in 2023 to match pay for any OpenAI employees they hired away amid leadership chaos at the AI company. This was right as Microsoft was implementing cost cuts and salary freezes, so the move irked some staffers.
The fierce battle for AI expertise is certainly driving this increased focus. Microsoft, Google, OpenAI, Meta, and others are scrambling to build the most powerful AI models and apps powered by generative AI. Having developers and engineers who deeply understand the tech behind these capabilities is crucial. It’s led to bidding wars and AI specialists getting showered with multi-million dollar pay packages.
On a similar note, Microsoft is also prioritizing security at the company following a string of cybersecurity incidents by binding employee bonuses and promotions to security performance.
