As expected, Microsoft has unveiled sweeping changes to its employee compensation, doubling its salary budget and boosting stock compensation by 25% for some.
Cost of living and increased recruiting competition among tech firms is causing some to start raising their compensation packages. Reports last week indicated Microsoft was preparing to raise its pay, largely in response to similar measures at Amazon. According to The Seattle Times, Microsoft has made good on those reports, raising wages primarily for “early to mid-career employees.”
The company is doubling its salary budget. The changes will vary by location, where “the most meaningful increases will be focused where the market demands.” Stock compensation for employees at or below level 67 on the company’s scale will increase by as much as 25%.
“As we approach our annual total rewards process, we are making a significant additional investment this year to compensate our employees globally,” the company said. “While we have factored in 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 move should help the company fend off poaching attempts by large rivals, such as Amazon and Google, as well as from startups looking to attract top talent.
“Time and time again, we see that our talent is in high demand because of the amazing work that you do,” CEO Satya Nadella said in a memo seen by Bloomberg.