Once the fluctuation ratio would be identified, it would be compared to the fluctuation ratio adherent to the same period of the previous year. The HR department would calculate a variation interval in which the fluctuation would be considered normal and then compare the current employee statistics with the previous ones and draw the conclusions.
Another method Microsoft could use to identify the results of the implemented solution would be to engage in conversations with the employees or send out questionnaires for them to fill in and then analyze the responses given. They could ask the workers if they purchased shares and if they did, in what amount, how has their income changed since they became shareholder and how did they see their future at Microsoft.
5. Contingency plan
In the eventuality that the implantation of the ESPP does not have the desired results, the human resource department needs to elaborate a second plan to solve the employee crisis in the company. Based on the results of the Paired Comparison Analysis (part two), the second best alternative to solve the human resource problem would be for Microsoft to elaborate financial plans for its workers. In this order of ideas, the company could offer their employees the possibility of "leaving" part of their monthly salaries in the company for further investments. In exchange for this short-term "loans," Microsoft would pay employees interest rates according to the amount of money left in the firm and employees could get their money back anytime they wished. Nonetheless, these amounts could not exceed 15% of each employee's pre-tax salary (Microsoft Benefits, Microsoft Corporation, Recruiting Brochure, 0695 Part No. 098-60768)
Another method to promote the financial plans for employees would be to offer them assistance with purchasing houses and other properties. Microsoft could help its employees contract bank loans by endorsing them or could even offer the employee the loan themselves, with interest rates lower then the banks'.
Having concluded, in the second part of the paper, that financial rewordings are the most motivating factor for an employee, I believe that, if the ESPP were to fail, the next best option Microsoft should implement, in order to solve their HR crisis, would be the elaboration of financial plans.
6. The criteria for measuring a successful outcome
Considering the initial problem, mass resignation of the employees, the solution implemented would be considered successful once the number of employees that leave the firm will decrease. Based on the statistics elaborated by the HR department, the outcome of the selected alternative will be considered to have achieved its goals when the employee fluctuation will be contained in the variation intervals adherent to the normal fluctuation.
7. Schedule and budget for the ESPP
The implementation of the ESPP would begin in the autumn of 2006, more precisely in September 1st 2006, with the necessary preparation: analyzing the data adherent to employees' interest in becoming shareholders, the approximate number of shares needed, their costs and the actual printing of the stock options.
From January 1st 2007, Microsoft employees would be able to buy shares at he price of 7$ per share, but will not be allowed to invest more than 15% of their pre-tax income.
Elaboration of the budget for 2007 would be based on the price of a share (7$), the number of employees interested in buying stocks and the profits and...
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