Microsoft Corp. looks to “nearly double” its budget for employee salary increases and boost the range of stock compensation for some workers by at least 25 percent, to retain staff and help people manage inflation, Bloomberg reports.
Microsoft had 181,000 employees as of June 30, 2021. The move will primarily cater to “early to mid-career employees.”
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 becomes a company partner.
The salary budget increases will vary by country, and “the most meaningful increases will be focused where the market demands.”
Apart from confronting cost-of-living increases and a tight Seattle housing market, Microsoft is locked in a fierce battle for talent with companies like Amazon.com Inc., Alphabet Inc. Google, Facebook owner Meta Platforms Inc., and startups.
Fields like cybersecurity, artificial intelligence, the metaverse, and cloud computing have been incredibly competitive.
Moreover, the pandemic has led many workers to relocate and reconsider employment options.
Amazon in February disclosed more than doubling the maximum base salary it pays employees to $350,000 from $160,000 to cope with a competitive labor market.
