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NewsJanuary 12, 20252 minutes
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An internal Microsoft document reveals how managers determine which employees are essential to retain — and it all revolves around AI.

Microsoft managers use forms to request retention bonuses for employees they can't afford to lose. One document, reviewed by Business Insider, includes a section specifically for employees' contributions to artificial intelligence.

According to payroll data, Microsoft AI employees earn significantly more than their peers. The company’s focus on AI talent is evident, as some managers may be taking extra steps to retain employees with AI expertise, as highlighted in the internal document.

These forms, which managers fill out when requesting retention bonuses, include a question asking, "What harm is done if this employee leaves Microsoft?" The document Business Insider reviewed added a new section focused on AI contributions.

In particular, the form asks, “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.”

This updated document is intended for a specific group within Microsoft, though it’s unclear whether the AI-related question is included in similar forms across other departments.

A Microsoft spokesperson clarified that the company doesn't have a central form for special stock and cash-award requests, allowing teams to customize fields based on their strategic goals.

However, the inclusion of the AI-focused question suggests that the ongoing competition for AI talent is leading some parts of Microsoft to take additional measures to prevent rivals from poaching their top employees.

In the race to develop powerful AI models and cutting-edge generative AI tools, tech giants like Google, OpenAI, and Meta are all vying for skilled employees who understand the technical aspects of creating these products. This has led to intense competition, with some offering multimillion-dollar compensation packages.

As of September, payroll data reveals that the average compensation for Microsoft’s AI group was 37% higher than the company’s overall US employee average. Software engineers working in AI earned 48% more than their counterparts in other departments.

In 2023, amid a leadership crisis at OpenAI, Microsoft’s CTO Kevin Scott announced that the company would hire hundreds of OpenAI employees and match their compensation. This move came during a period of job cuts and salary freezes at Microsoft, sparking frustration among some employees.