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(Bloomberg) — Microsoft Corp. plans to “nearly double” its budget for worker pay raises and increase the variety of inventory payments it offers some employees by at least 25 percent, an effort to retain and help others deal with inflation.
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The move will have effects primarily on “career-starting employees,” the software giant said Monday.
“As we move forward in our annual overall payment process, we are making a significant additional investment this year to pay our workers around the world,” the Redmond, Washington-based company said. inflation and the emerging burden of living, those adjustments also demonstrate our appreciation for our world-class ability that supports our mission, culture, consumers and partners. “
In addition to dealing with the emerging burden of living and a tight housing market in Seattle, Microsoft is engaged in a fierce war for skill with corporations such as Amazon. com Inc. , Google and Facebook owner Meta Platforms Inc. , as well as startups. Fields such as cybersecurity, synthetic intelligence, metaverse and cloud computing have been competitive. In addition, the pandemic has led many employees to relocate and reconsider their task options.
“Time and time again, we find that our ability is at the top because of the works you do,” CEO Satya Nadella said in a note received through Bloomberg.
Microsoft’s salary package is made up of base salary, bonuses and stocks. The adjustments will apply to a truly large part of the company’s workforce, which at 30 June 2021 amounted to 181,000.
The stockpile will apply to workers at or below point 67 of the company’s internal scale, Nadella said. Level 67 is the last point before a worker becomes a spouse of the company, which places him in a higher salary range. Salary budget increases will vary by country and “maximum significant increases will be concentrated where the market demands it. “
The company hasn’t discussed the payout figures, so it’s hard to say how much the new payment grades will translate into dollars. But Glassdoor estimates that a recent graduate applying as a software engineer at Microsoft earns about $163,000.
In February, Cross-town rival Amazon. com Inc. said it would more than double the maximum base salary it will pay employees from $160,000 to $350,000 to cope with a competitive job market.
Microsoft announced the changes as the fiscal year ended June 30 progressed. By the current fiscal year, the company had already implemented superior budgets for promotions and a special equity compliment aimed at “recognizing the exceptional impact and helping the retention of our maximum competitive skills pools,” Nadella wrote.
Insider reported that the company was contemplating the increases last week.
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