COMP NEWS – Microsoft announced that it plans to increase its salary budget and stock compensation for workers.

Microsoft Corp. said it plans to “nearly double” its budget for employee salary increases and boost the amount of stock compensation it gives some workers by at least 25 percent, in an effort to retain staff and help people cope with inflation.

Microsoft’s salary package is made up of base salary, bonus and stock. The changes will apply to a substantial part of the company’s workforce, which stood at 181,000 as of June 2021.

Microsoft’s salary budget increase follows the lead among other companies vying to claim top talent in a competitive hiring environment.

Microsoft’s readiness to spend more on staff follows similar moves by rivals in its core cloud-computing sector. Late last year, Alphabet Inc.’s Google announced a new cash bonus plan that lets employees receive bonuses of nearly any size for nearly any reason.

The move comes as U.S. inflation remained close to a four-decade high in April.

Competitive compensation is a key factor of employee retention, said one spokesperson for Microsoft. Progressive compensation policies are necessary for companies looking to adapt .

“This increased investment in our worldwide compensation reflects the ongoing commitment we have to providing a highly competitive experience for our employees,” a Microsoft spokesperson said. “People come to and stay at Microsoft because of our mission and culture, the meaning they find in the work they do, the people they work with, and how they are rewarded.”

To read more about Microsoft’s increased salary budget, click here.

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