Microsoft May Increase Salaries to Retain Talent: Report

Microsoft is reportedly planning to double its global budget, including employees’ salaries. According to Geekwire, the company aims to increase the merit-based salary and “range for annual stock-based compensation" by at least 25 percent for employees at the senior director level and below to retain its workers. The publication accessed the information in a memo sent by Microsoft CEO Satya Nadella to employees earlier this week. It appears that Microsoft is doubling efforts to keep it"s compensation competitive in a tough market for tech talent", and a broader environment of inflation.

The publication notes that Microsoft CEO’s memo comes ahead of its 2022 fiscal year ending June 30. The note reads, “Time and time again, we see that our talent is in high demand, because of the amazing work you do to empower our customers and partners… Across the leadership team, your impact is both recognised and deeply appreciated — and for that I want to say a big thank you. That’s why we’re making long-term investments in each of you."

The alleged memo highlights Microsoft’s plans to provide merit-based compensation to employees of “all levels 67 and below". The publication explains that “levels 67 and below" generally refers to employees up to and including senior directors. That means those who have reached what Microsoft calls the “partner" level — including general managers, vice presidents and other higher-ranking executives — are not the focus of Nadella’s email.

Microsoft’s move to increase compensation will vary country by country, but details related to the Indian-offices remain unclear. It appears the changes will apply to a substantial part of the company’s workforce, which stood at 181,000 as of June 30, 2021.

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Amazon, similar to Microsoft, had reportedly planned to boost the pay for its corporate and tech employees. A leaked memo had suggested that the budget hike was aimed to hire more talent and retain its top core.

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