Microsoft plans to boost wages and benefits to retain its talent in a competitive labor market as decades of high inflation eroded the purchasing power of American workers.
The Seattle-based tech giant said on Monday it would “nearly double” its budget for employee pay as part of its retention efforts. Microsoft is also increasing its stock-based compensation limit by at least 25%.
“This increased investment in our worldwide compensation reflects our ongoing commitment to providing a highly competitive experience for our employees,” a Microsoft spokesperson said in a statement to The Post.
According to Bloomberg, the increase will apply mostly to early- and mid-career Microsoft employees. The company had 103,000 employees in the US as of last June and another 78,000 employees worldwide.
“As we approach our annual total rewards process, we are making a significant additional investment this year to compensate our employees globally,” Microsoft said in a statement obtained by Bloomberg.
“While we have taken into account the effects of inflation and rising cost of living, these changes also recognize our appreciation for the world-class talent that supports our mission, culture and customers and partners.”
The high cost of living is one of many considerations for firms such as Microsoft and its rivals – all of which face the challenge of filling job roles during periods of high worker leverage known as the “Great Resignation”. goes.
Microsoft currently has a hybrid work policy and managers have to approve schedules in which employees work from home more than 50% of the time.
A Microsoft spokesperson told The Post, “People come and stay at Microsoft because of our mission and culture, the meaning they find in their work, the people they work with and how they are rewarded. “
Inflation rose higher than expected to 8.3% in April and has remained persistent for months, slashing workers’ wage benefits and increasing pressure on the household budget.
The cost of rent has gone up in major cities like New York. The most recent Consumer Price Index showed that shelter costs increased 5.1% year-on-year compared to March and 0.5% compared to March – the highest rate of annual increase since 1991.
Prices of major commodities like gas and grocery are also rising.
In February, Amazon doubled its basic wage limit for corporate employees to $350,000. At the time, the company described it as struggling with a “particularly competitive labor market”.
Tech giants aren’t the only companies making new efforts to attract and retain talent.
As reported by The Post, Walmart is launching a pilot program aimed at recent college grads that will keep them on track for store manager roles that pay up to $210,000 per year.