Microsoft to Boost Employee Compensation Amid High Inflation

CEO of Microsoft Corp is promising to increase employee compensation, given the persistently low unemployment rate and high inflation rates in the USA.

According to sources, Satya Nadella told Microsoft employees on Monday that the company is planning to almost double its global budget for merit-based salary raises. The CEO also said that the company would increase annual stock compensation by at least 25%.

A Microsoft spokesperson has said, “This increased investment in our worldwide compensation reflects the ongoing commitment we have to provide a highly competitive experience for our employees.”

Microsoft's willingness to invest in human resources follows similar moves by competitors in the core cloud computing sector. At the end of last year, Alphabet Inc.'s Google announced a new cash bonus plan that allows employees to earn bonuses of almost any amount for almost any reason. In February, Amazon.com Inc. announced that it would double its employees' cash-pay cap.

Microsoft has also faced competition for talent elsewhere as its augmented reality HoloLens team witnessed a large number of employees being poached by Meta Platforms Inc.

For experienced employees in augmented reality hardware, Meta was willing to offer double salaries to some Microsoft employees, people familiar with the situation said. Nowadays, some tech companies have shown that they are becoming more spartan. Both Meta and Twitter Inc. said they would cut headcount and spending.