Comment by cjbgkagh

I think uncompetitive compensation is the dominant factor in Microsoft’s decline. Up there with stack ranking. They claim that it’s 30% cheaper to live there but then they go and capture most of that 30% for themselves.

It is my opinion that developer ability is on a Pareto distribution, like the 80 20 rule when 80% of the work is done by 20% of the people. The job market is more liquid for those that are extremely productive so it’s pretty easy to for them to get a pay rise of 30% by switching companies. In the worst case you can often come back with a promotion because, like many companies, Microsoft is more likely to promote you when trying to poach you back. Doing a 2 year stint at Amazon was quite common. The other problem is that when your best people leave is that the process is iterative, not only are you getting paid less but you are now working with people who couldn’t easily switch jobs. You start being surrounded by incompetence. Stack ranking, which I hear is still being done unofficially, also means that you put your promotion and career in danger by joining a highly productive team. So it is rather difficult to get highly productive people to work on the same team.

Being paid less, being surrounded by incompetence, and being forced to engage in constant high stakes politicking really sucks.