Microsoft plans to boost salaries and benefits to retain its talent in the competitive labor market,
as high inflation has exhausted the buying power of American workers.
Microsoft recently stated that it would “nearly double” its budget for employee pay as part of its retention efforts.
Microsoft is also increasing the range of its stock-based compensation by at least 25%.
*Bloomberg tweet on Microsoft compensation
Microsoft said it will “nearly double” its budget for salaries and boost the range of stock compensation it gives workers by at least 25% to retain staff and help people cope with rising costs https://t.co/Y65ySTnr7G
— Bloomberg (@business) May 16, 2022
“This increased investment in our worldwide compensation reflects the ongoing commitment we have to providing a highly competitive experience for our employees,” a Microsoft spokesperson said in a statement.
The increases will mostly apply to early and mid-career Microsoft employees, according to Bloomberg. The company had 103,000 workers in the US and over 78,000 around the world.
“As we approach our annual total rewards process, we are making a significant additional investment this year to compensate our employees globally,” Microsoft said in a statement obtained by Bloomberg.
“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.”
The higher cost of living is just one of several considerations for firms such as Microsoft and its rivals, all of which are faced with the challenge of filling job roles during a period of high worker leverage that has become known as the “Great Resignation.”
*Microsoft currently has a hybrid work policy and managers have to approve schedules in which employees work from home more than 50% of the time