Long Term Talent Attraction Strategies Yes even in difficult Economic times !

Microsoft Russian Federation – Fast Facts FY08 Revenue $1.2B; FY09 Target $1.59B Headcount Statistics FY08 Close to 1000 Mainly Sales and Marketing B2B & Consumer Small Development Centre Russia is Microsoft’s fastest growing market Top line growth has been close to 100% each year

Challenging Market for Sourcing Experienced Hires, shortage of: Experienced Mangers, Marketing Excellence Capability, Leadership potential Language skills or International experience All Multinationals and local companies are increasingly fishing in the same pond! Russian companies willing to exceed the remuneration packages we offer

Microsoft takes a strategic HR approach to our Business Growth Without a sharp approach to recruiting, developing & retaining talent, How do you maintain competitive edge? Plan is mid-long range and reviewed regularly Anchor with detailed workforce planning &costing Break into “buckets” of talent e.g. level, skill set etc Allow strategy to drive a programmatic approach

Key Areas of Focus FY 11 Business Strategy & Execution Plan OrganisationLeadershipTalent Phase I High-level findings on desired capabilities Defined desired profile and gaps Engaged country leaders Identified trends in market Phase II Define Organisation Design based on FY11 Business strategy Processes Capabilities Infrastructure Roles/job families Org Design blueprint and change management plan for sign off Drive assessment of top 50 in each country And action as a result Accelerated development of top talent Robust development plans and action Sourcing – proactively source top leadership talent externally Countries commit to action plan Build FY11 Workforce plan driven by Organisation Design Build development strategy by country against FY11 talent and organizational capabilities Sourcing strategy Employer brand Development programs, incl rotation Business case for investment, e.g., MS ‘University’ Structured rotation program MBA recruiting strategy Phase III (FY09) ImplementContinue building leadership bench Implement * 5

Responding to Volatility and Uncertain Economic Times Talent Plan – may need revision based on economic reality – ensure specific fit and resource prioritisation! Any change management process should still balance short and long term strategic needs Focus on performance management – strongest/ weaker performers Yes -Still focus on Talent Acquisition

Aggressively Pursue the Hearts and Minds of Top Performers Economic uncertainty leads to drop in attrition – need to performance manage this effectively However as Labor market tightens -more essential to maximize employee engagement, attraction, performance, and development approaches in order to protect a competitive position on talent.

Trade up on Talent! Volatility, acquisitions, and lack of alternative employment options, may free top talent into the labor market. Target outstanding employees - take a hard look at your talent bench and think about upgrades

Effective Sourcing- The solution Workforce planning process – where do we need to look? Multiple pipelines in with different sourcing strategies Attraction and Branding should be tailored. Consider attracting the people who match the value proposition not just the competencies. High touch with candidates, dig deep for passive candidates, funky approach using technology. Use executives, alumni, employees with blogs. Develop a Talent Magnet Talent Pool should also encompass attracting/sourcing internal talent pool

Sources of Talent Internal Key Hipo's Promotions strategy MBA program Outside Russia - Internal MS expats (e.g. Rotation program) Competitive Recruiting/local market Returning Russian Expats External Expats who speak Russian Re-hiring former Employees Graduates

Ask yourself the Right Questions K ey questions to address –What are the buckets? –What's the cost ? e.g., expat twice the cost, –Quality what can we can get? –How can we accelerate developing more of our internal talent? Double/triple promotions… promote like hell, pay attention to people earlier? –How can we improve quality of hire? –Consider MBA program? –Who are the best headhunters? Do we know them? –Targeted Market intelligence? –Include diversity all the way through

Critical Factors to success in attracting and sourcing candidates Work the Employer Value Proposition, messaging and brand Think globally not locally Targeted recruitment strategy – with numbers Build a talent mindset from within the organisation, retention and acquisition Approach the talent pool from a CRM perspective

Talent Pool Attraction strategies establish talent pools for the organisation but key message here is around the effective and ongoing engagement with these pools. Basically never kid yourself that you “own” your talent pool – it’s how you leverage it! Things to consider: Recruitment Teams can’t do this alone: suggest also use, executives, alumni, existing employees with blogs. Develop a Talent Magnet Talent Pool should also encompass attracting/sourcing internal talent pool