What is Microsoft's annual 'Employee poll question' for 2024, and why it's important

Microsoft reportedly holds an annual poll called "Employee Signals," wherein it asks employees multiple questions, including the one that has a lot of importance for the company and employees. In this year’s poll, 62% of employees answered favourably – a drop in comparison to last year’s poll, a report said.

What is the ‘important’ question
According to a report by Business Insider, a question about whether they get a "good deal at Microsoft (i.e. there is a reasonable balance between what I contribute to Microsoft and what I get in return)” holds importance because it provides a window into employee sentiment.

This information helps Microsoft shape initiatives and adjust compensation packages to improve employee satisfaction and retention.

For example, in 2022, when the survey question yielded a low and declining score reportedly pushed Microsoft's decision to announce substantial pay raises across the company. Apart from addressing employee concerns, the move was also aimed to improve employees’ morale as well as retain talent in the face of competition from companies like Amazon.

Fewer employees are ‘satisfied’
Citing this year’s poll, the publication says that this year’s 62% positive response is down from last year’s 69%. In 2023, the survey was closed before Microsoft announced it would pause raises and cut bonuses and stock awards. Employees got raises but some felt they were underwhelming.

This was followed by massive job cuts at the company, and it froze salary raises and cut its budget for stock and bonuses.

Microsoft to restart performance-based raises
Earlier this year, a report claimed that Microsoft is planning to restart performance-based raises for some employees during this year's review cycle, which started in April.

Citing two people present, the report said that Scott Guthrie, the executive vice president of Microsoft's cloud and AI group, told employees at an April 30 meeting that merit raises would increase this year. Microsoft calls performance-based raises "merit increases."