In the midst of a talent crisis, Microsoft wants to retain talent through salary increases, bonuses

Amid intense pressure to attract and retain talent, Microsoft is increasing its workers’ worldwide compensation to stay competitive with some of its big-tech rivals, including Amazon and Meta.

The Redmond, WA company plans to nearly double its global budget for merit-based pay increases, and increase its range for annual stock-based compensation for employees at the senior manager level and below, by at least 25%, according to a GeekWire report.

“In particular, we’re almost doubling the global intellectual budget,” Microsoft CEO Satya Nadela told staff in an email Monday morning. “Talent budgets will vary by country based on local market data, and the most meaningful growth will focus on market demand and early to mid-career levels. We are increasing the annual stock range by at least 25% for all levels 67 and below.”

According to Geekwire, the reference to “level 67 and below” refers to employees up to the senior director.

For the technology market, the talent deficit is much worse than the overall national unemployment rate, which is close to 3.6% in the United States; Only 2% for the tech industry, according to CompTIA, is a non-profit organization for the IT industry and the workforce. This has prompted employers across the United States to increase their search for employees – and to review salaries and qualifications (such as a four-year college degree).

“This increased investment in our global compensation reflects an ongoing commitment to provide a highly competitive experience for our employees,” a Microsoft spokesman said in an email to ComputerWorld.

Microsoft’s pay rise follows similar moves by Apple and Alphabet, which reportedly targeted selected employees in the software and hardware engineering departments.

According to Bloomberg, in December 2021, Apple offered stock bonuses ranging from $ 50,000 to $ 180,000 to selected hardware, software and silicon design and operations managers to eliminate errors in Facebook’s meta.

In March, the company handed over a second round of stock-based bonuses to some employees in the amount of up to $ 200,000, Bloomberg reported.

Microsoft is said to be most concerned about leaving employees at Amazon, which doubled its compensation cap from $ 160,000 to $ 350,000 earlier this year, Bloomberg reported in February.

Microsoft, however, is deeply focused on improving its video game capabilities, which means it wants more developers, especially for its gaming efforts. In January, Microsoft acquired Activation, the maker of “Call of Duty,” “World of Warcraft” and “Candy Crush” for a record 68.7 billion. The acquisition puts Microsoft at the forefront of the gaming industry and possibly the virtual reality metavers.

According to a new report by Robin Powered, a maker of workplace management software, compensation issues, especially with younger employees. A survey of its 600 Z employees revealed that most of those who were ready to leave their positions now say that the reasons for running their plans include more money (53%), better fit elsewhere (33%), a promotion (30%), And even better. Workplace culture (24%). In addition, 74% of those surveyed indicated that they would be willing to stay in their current job for an increase of up to 20%.

By 2025, General Z – 72 million people born between 1997 and 2012 – will be about one-third of the workforce, according to Robin.

“When we ask General Z employees how important happiness is to them in their job, a staggering 44% report that they will be in a job they are not happy with, if the salary is satisfactory then 47% will choose happiness over money.” Powered by Blogger.

According to research firm Gartner, one in five companies (18%) have planned at least one additional pay rise this year. One-third (36%) of the 122 companies that responded to Gartner’s April survey indicated slightly more that they had not yet decided whether to offer additional growth. And Gartner’s survey found that Standard has planned an ad-hoc pay review among three organizations this year, compared to the annual review.

Copyright © 2022 IDG Communications, Inc.

Leave a Reply

Your email address will not be published.