Microsoft prepares to ‘double’ staff compensation in retention bid

Tech giant Microsoft is set to hand out pay rises to it workforce in a bid to prevent employees from leaving to competitor firms such as Amazon.

In an email to workers yesterday (Monday 17 May), CEO Satya Nadella explained that the business is planning on nearly doubling the compensation its employees receive, by at least 25% for those at the senior director level and below.

According to the Daily Mail, the salary package at Microsoft includes a base salary, bonus and stock, however an internal survey found that workers are seemingly unhappy and dissatisfied.

In fact, it shared that just 66% of employees agreed that they get a “good deal at Microsoft” when it comes to things such as pay and self-worth.

“Time and time again, we see that our talent is in high demand, because of the amazing work you do to empower our customers and partners,” Nadella wrote in the memo, seen by GeekWire.

“Across the leadership team, your impact is both recognised and deeply appreciated — and for that I want to say a big thank you. That’s why we’re making long-term investments in each of you.”

He revealed how the business is expanding its global merit budget, adding that this would vary by country and will be based on local market data.

The attempt to retain its staff with higher pay comes after Amazon doubled its maximum base salary from £128,246 ($160,000) to £280,539 ($350,000) after employees at the business stated that they were earning “comparatively low pay” in comparison to workers at their rivals.

In a statement shared by Microsoft, the company commented: “As we approach our annual total rewards process, we are making a significant additional investment this year to compensate our employees globally.

“While we have factored in the impact of inflation and rising cost of living, these changes also recognise our appreciation to our world-class talent who support our mission, culture and customers, and partners.”

An increase in stock will also be applied to employees who are at ‘level 67’ in Microsoft’s pay scale or below.

The tier is the final level before a team member is eligible to be made a company partner, which automatically bumps them up to a higher pay scale.

Fight for talent

Microsoft isn’t the only business to up pay in order to retain its talent.

The BBC recently announced that its workers would receive a 4.2% pay increase in August, with a further one percent rise expected later in the year.

It comes as the broadcaster lost some of its top talent to rival firms, such as LBC.

Pay and inflation will be explored at Global Payroll Question Time this June – secure your free ticket here.