Software giant Microsoft is starting to boost its employee's salaries in a bid to stop a huge brain drain.

Apparently competition from younger businesses like Google and Facebook has prompted the firm to significantly improve salary deals for many junior and mid-level workers. Some this included shifting some of their compensation from shares to wages.

Silicon Valley outfits are starting a huge hiring spree.  Lots of young talent is being tempted by corporate head hunters. Chief executive Steve Ballmer has apparently told employees compensation will be increased for staff 'where the market has moved the most.' This is junior and mid-level workers in research and development, and all mid-level employees in certain areas.