Microsoft plans to spice up salaries and advantages to retain its talent within the competitive labor market as decades-high inflation has sapped the buying power of American employees.
The Seattle-based tech giant said Monday it could “nearly double” its budget for worker pay as a part of its retention efforts. Microsoft can also be increasing the range of its stock-based compensation by no less than 25%.
“This increased investment in our worldwide compensation reflects the continued commitment now we have to providing a highly competitive experience for our employees,” a Microsoft spokesperson said in a press release to The Post.
The increases will mostly apply to early and mid-career Microsoft employees, in line with Bloomberg. The corporate had 103,000 employees within the US as of last June and one other 78,000 all over the world.
Microsoft said the changes mostly apply to early and mid-career employees.Boston Globe via Getty Images
“As we approach our annual total rewards process, we’re making a big additional investment this yr to compensate our employees globally,” Microsoft said in a press release obtained by Bloomberg.
“While now we have factored within 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 upper cost of living is just considered one of several considerations for firms resembling Microsoft and its rivals – all of that are faced with the challenge of filling job roles during a period of high employee leverage that has turn out to be often known as the “Great Resignation.”
Microsoft currently has a hybrid work policy and managers need to approve schedules by which employees work at home greater than 50% of the time.
“People come to and stay at Microsoft due to our mission and culture, the meaning they find within the work they do, the people they work with, and the way they’re rewarded,” the Microsoft spokesperson told The Post.
Microsoft can also be boosting stock-based compensation.Getty Images for Leaders
Inflation surged to a higher-than-expected 8.3% in April and has remained persistent for months, sapping employee wage gains and adding pressure to household budgets.
The associated fee of rent in major cities resembling Recent York has surged. Essentially the most recent Consumer Price Index showed that shelter costs rose 5.1% year-over-year and 0.5% in comparison with March – the very best rate of annual increase since 1991.
Prices for staple items resembling gas and groceries are also on the rise.
In February, Amazon doubled its base pay limit for corporate employees to $350,000. On the time, the corporate described contending with a “particularly competitive labor market.”
Tech giants aren’t the one corporations rolling out recent efforts to draw and retain talent.
As The Post reported, Walmart is rolling out a pilot program aimed toward recent college grads that can put them on target for store manager roles that pay as much as $210,000 per yr.