(Bloomberg) — Microsoft plans to “nearly double” its budget for employee pay raises and increase the range of stock compensation it gives some workers by at least 25%, an effort to retain staff and help people. to cope with inflation.
The move will primarily affect “employees in the early to mid-career years,” the software giant said in a statement Monday.
“As we approach our annual process of total rewards, we are making a significant additional investment this year to compensate our employees globally,” the Redmond, Washington-based company said. “While we have taken into account the impact of inflation and rising cost of living, these changes also recognize our appreciation for our world-class talent that supports our mission, culture, customers and partners.”
In addition to dealing with rising costs of living and a tight housing market in Seattle, Microsoft is locked in a fierce battle for talent with companies like Amazon.com, Google and the owner of Facebook, as well as startups. Fields like cybersecurity, artificial intelligence, the metaverse, and cloud computing have been especially competitive. Additionally, the pandemic has prompted many workers to relocate and reconsider employment options.
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Microsoft’s salary package is made up of base salary, bonuses and stock. The changes will apply to a substantial portion of the company’s workforce, which as of June 30, 2021, numbered 181,000.
The company didn’t discuss pay figures, so it’s hard to know what the new dollar compensation levels will translate to. But the Glassdoor website estimates that a recent graduate working as a software engineer at Microsoft earns around $163,000.
Insider reported that the company was considering the raises last week.
Microsoft to Boost Pay to Keep Workers, Cope With Inflation (1)
(Correction in the first paragraph to indicate that the salary increase budget is going to be doubled)
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