With the possibility of a break-up hovering over Microsoft, one of the software giant's biggest challenges is maintaining a sense of security among its employees.

High-level employees have left the company over the past year, including the chief finance officer, Mr Greg Maffei, now the head of 360 Networks, a network fibre company. Seattle's high-tech community is thronging with Internet start-ups run by former Microsoft employees.

Microsoft recently revamped its stock-option plan for employees as a way to boost morale and keep people in the company. Stock options have been one of Microsoft's keys to employee retention, but they worked well only when the shares continued to grow. With the stock down about 40 per cent from its high, that plan is no longer a sure way to keep people.

But the company has also built a resilient and loyal culture, not only by rewarding workers with stock options but also by treating software developers like kings. Many on the company's Redmond campus are insulated from doing anything but writing code, keeping developers passionately focused and loyal.

Still, people who have worked at Microsoft and know people who are still at the company say many employees are asking: "When will we start feeling this?"