[Global] Microsoft will ‘nearly double’ pay to retain employees

Microsoft Corp. intends to “nearly double” its budget for employee salary increases in addition to boosting the range of stock compensation it gives some workers by at least 25 per cent as part of efforts to retain staff and help workers cope with inflation, Bloomberg UK reports.

In a statement on May 16, Microsoft said the move will primarily affect “early to mid-career employees”.

“As we approach our annual total rewards process, we are making a significant additional investment this year to compensate our employees globally,” the software giant said. “While we have factored in the impact of inflation and rising cost of living, these changes also recognize our appreciation to our world-class talent who support our mission, culture and customers, and partners.”

In addition to contending with the ongoing cost of living increases and a competitive Seattle housing market, Microsoft is locked in a talent battle with companies like Amazon, Google and Facebook owner Meta Platforms Inc., as well as startups. Fields like cybersecurity, artificial intelligence, the metaverse and cloud computing have been especially competitive. And the pandemic has prompted many workers to relocate and reconsider employment options.

“Time and time again, we see that our talent is in high demand because of the amazing work that you do,” Microsoft CEO Satya Nadella said in a memo that was obtained by Bloomberg. 

Microsoft’s salary package is composed of base salary, bonus and stock. The changes will impact a significant part of the company’s workforce; it employed 181,000 people as of June 30, 2021.

Mr Nadella said the stock increase will apply to employees at Level 67 in the company’s internal scale, or below. Level 67 is the last tier before an employee is made a company partner, which puts them on a higher pay scale. The salary budget increases will reportedly vary by country and “the most meaningful increases will be focused where the market demands.”

The company didn’t discuss specific pay figures but Glassdoor estimates that a new graduate employed as a software engineer at Microsoft earns about $163,000.

In February Microsoft’s cross-town rival Amazon said it would more than double the maximum base salary it pays employees to $350,000 from $160,000 to cope with a competitive labour market.

Microsoft has announced these changes in the run-up to the end of the fiscal year on June 30. The company had already put in place higher budgets for the current fiscal year for promotions and a special stock award meant to “recognize exceptional impact and support retention of our most competitive talent pools,” Mr Nadella wrote. 

Source: Bloomberg UK

(Link and quotes via original reporting)

Microsoft Corp. intends to “nearly double” its budget for employee salary increases in addition to boosting the range of stock compensation it gives some workers by at least 25 per cent as part of efforts to retain staff and help workers cope with inflation, Bloomberg UK reports.

In a statement on May 16, Microsoft said the move will primarily affect “early to mid-career employees”.

“As we approach our annual total rewards process, we are making a significant additional investment this year to compensate our employees globally,” the software giant said. “While we have factored in the impact of inflation and rising cost of living, these changes also recognize our appreciation to our world-class talent who support our mission, culture and customers, and partners.”

In addition to contending with the ongoing cost of living increases and a competitive Seattle housing market, Microsoft is locked in a talent battle with companies like Amazon, Google and Facebook owner Meta Platforms Inc., as well as startups. Fields like cybersecurity, artificial intelligence, the metaverse and cloud computing have been especially competitive. And the pandemic has prompted many workers to relocate and reconsider employment options.

“Time and time again, we see that our talent is in high demand because of the amazing work that you do,” Microsoft CEO Satya Nadella said in a memo that was obtained by Bloomberg. 

Microsoft’s salary package is composed of base salary, bonus and stock. The changes will impact a significant part of the company’s workforce; it employed 181,000 people as of June 30, 2021.

Mr Nadella said the stock increase will apply to employees at Level 67 in the company’s internal scale, or below. Level 67 is the last tier before an employee is made a company partner, which puts them on a higher pay scale. The salary budget increases will reportedly vary by country and “the most meaningful increases will be focused where the market demands.”

The company didn’t discuss specific pay figures but Glassdoor estimates that a new graduate employed as a software engineer at Microsoft earns about $163,000.

In February Microsoft’s cross-town rival Amazon said it would more than double the maximum base salary it pays employees to $350,000 from $160,000 to cope with a competitive labour market.

Microsoft has announced these changes in the run-up to the end of the fiscal year on June 30. The company had already put in place higher budgets for the current fiscal year for promotions and a special stock award meant to “recognize exceptional impact and support retention of our most competitive talent pools,” Mr Nadella wrote. 

Source: Bloomberg UK

(Link and quotes via original reporting)