On May 17, Beijing time, Microsoft CEO Satya NADELLA told employees on Monday that Microsoft decided to give employees a raise due to the increasingly tight labor market and high inflation** A Microsoft spokesman responded: "the reason why employees come to Microsoft and stay is mainly because of our mission and culture. In addition, they find meaning in their work, as well as the people who work with them and the recycling of harvest. The global salary increase shows that we abide by our commitment, that is, we want to provide employees with a competitive work experience."
In April, the US inflation rate reached 8.3%, the highest in nearly 40 years. Technology companies have been forced to fight inflation with wage increases.
Alphabet adjusted the performance system so that employees can get higher compensation. Amazon promised to double the maximum basic salary.
NADELLA told employees that the company will nearly double its global performance budget, and Microsoft will allocate more money to employees at the beginning and middle of their career, focusing on specific regions. For those employees at level 67 and below, Microsoft will increase the annual stock incentive range by at least 25%.
In the first quarter of this year, Microsoft has announced a 21% increase in R & D spending, wages and stock based compensation.
In order to retain talents, large technology companies raise salaries, and small companies can only choose layoffs in special periods because of insufficient funds.