With more than 4,000 of its 27,000 employees already millionaires, Microsoft faces the challenge of figuring out how to motivating its employees though means other than pay raises.

With more than 4,000 of its 27,000 employees already millionaires, Microsoft faces the challenge of figuring out how to motivating its employees though means other than pay raises. While this problem is not unique to Microsoft, the circumstances under which this problem evolved however, are. As a company that must caters to the needs of the 'professional' worker, Microsoft's motivational strategy should center around recognition of individual employee achievements, the work itself, responsibility, growth, and other characteristics that people find intrinsically rewarding. By simple virtue of its position as a high-tech company - where highly trained, highly skilled 'professional' workers account for the vast majority of its employees - under normal circumstances money factors would play only limited role in actually motivating employees.

As a company composed of 'paper millionaires,' Microsoft is in a unique position - while many Microsoft employees may be labeled 'professional' employees, the company's financial position will play a special interest to many of its employees.

Microsoft Building

Microsoft and Flickr

Front entrance to building 17 on the main campus o...

As Microsoft stock-holders, the average Microsoft millionaire (the so called paper millionaire') has a vested interest in helping the company succeed and advance its financial position. This is true because the stockholder will directly correlate the amount of money they earn with the perceived worth to the organization. Driven by the idea that their financial success or failures are directly related to the performance (as well as public image) of the company, these employees will work with great vigor to maintain the success of their company. Until their financial position no longer depends on the company's stock performance - that is, until theses employees sell their stock and secure their fortunes - the Microsoft millionaires will likely view themselves as masters of their own destiny. Hard work, they are likely to reason, will translate into better company...