Microsoft has announced it will double its budget for merit-based employee pay increases, in a bid to retain staff in the current labour market.
In addition, the company is increasing annual stock by 25 per cent for senior managers and everyone below.
“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,” read an internal email from CEO Satya Nadella (below).
Microsoft CEO Satya Nadella
“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.
“Specifically, we are nearly doubling the global merit budget. Merit budgets will vary by country, based on local market data, and the most meaningful increases will be focused where the market demands and on early to mid-career levels.
“We are also increasing Annual Stock ranges by at least 25 percent for all levels 67 and below.”
This is a savvy retention move, aimed at the skilled workers that have become so valuable in recent years. It follows similar incentives offered by Apple last year to stop them defecting to Meta.
