Microsoft Is Considering Significant Pay Raises, Sources Say





  • Microsoft is said to be considering sweeping pay raises as staff grow less satisfied with compensation.
  • In an internal poll this year, 66% of employees said they get a “good deal at Microsoft.”
  • One person familiar with the plans said the company could announce a change as soon as Monday.

Microsoft is considering significant pay raises across its workforce to address growing dissatisfaction with compensation and stop employees from leaving to competitors including Amazon, according to two people familiar with the matter.

One of the people said the company could announce the move as soon as Monday. Both people asked not to be identified discussing private deliberations. Microsoft declined to comment.

In an internal company poll this year, viewed by Insider, just 66% of employees answered favorably to a question about whether they get a “good deal at Microsoft (i.e. there is a reasonable balance between what I contribute to Microsoft and what I get in return).” Favorable responses to this question are down from 73% last year, though Microsoft overhauled its employee survey this year so the results may not be comparable.

The raises would be in response to growing competition for talent, the people said, primarily from Amazon. Amazon in February more than doubled its maximum base salary to $350,000 in response to widespread angst over what employees there saw as comparatively low pay. The change didn’t amount to significant raises for everyone, but some engineers told Insider they got pay increases as high as 90%. Amazon has also been doling out record stock awards to employees lately. 

Microsoft employees in March completed the new internal survey, called “Employee Signals,” which this year replaced the “MS Poll” annual survey Microsoft has conducted for years. Because of the change, there doesn’t appear to be historical data for some of the responses.

A question about whether leaders are improving culture at Microsoft received 79% favorable responses, and a question about confidence in leaders received 78% favorable responses, but it’s unclear how those percentages compare with previous years.

Are you a Microsoft employee or do you have insight to share? Contact reporter Ashley Stewart via the encrypted messaging app Signal (+1-425-344-8242) or email (astewart@insider.com).




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