Microsoft Is Struggling To Retain Black, Latine, And Female Employees

Microsoft is struggling to retain its diverse workforce, with increasing numbers of women, Black, and Latine employees departing the company. 

According to Microsoft’s latest diversity and inclusion report, female employees accounted for 32.7% of all exits globally in the fiscal year ending June 30, 2024, up from 31% the previous year. 

In the US, Black and Latine employees also saw significant increases in departures, with Black employees making up 10% of exits (up from 8.7%) and Latinx employees comprising 9.8% of exits (up from 8%).

Poaching and Business Shifts Cited As Main Factors

The software giant attributes these trends primarily to talent poaching by rival companies and structural changes within its business. 

Microsoft’s physical and online retail operations, which traditionally had a more diverse workforce, continue to shrink, impacting the company’s ability to retain these employees. 

While fewer male and Asian employees left Microsoft during the same period, the increasing departure rates among Black, Latine, and female employees point to deeper systemic issues.

Microsoft’s Chief Diversity Officer Lindsay-Rae McIntyre acknowledged these retention struggles, stating that the company must do more once diverse talent is hired, according to Bloomberg.

“We’ve got to do more,” McIntyre said, mentioning that providing mentors and career development opportunities is crucial to giving employees reasons to stay.

Retention Efforts Under Scrutiny

While Microsoft says continues to prioritize hiring diverse talent, these retention challenges may undermine its long-term diversity goals, particularly as the company expands into areas like artificial intelligence. 

The need for diverse perspectives in ensuring unbiased AI systems adds urgency to these efforts. 

However, recent layoffs, including members of the company’s diversity, equity, and inclusion (DEI) teams, cast doubt on its commitment to building a more inclusive culture​​.

Feature Image Credit: Adnan Abidi / Reuters/Landov