Microsoft Is Substantially Increasing Pay to Retain Top Tech Talent

Microsoft will "nearly double" its budget for employee salary increases and improve stock compensation for employees too.

Microsoft is being proactive about the competitive job market amidst rampant inflation, as the company announced substantial pay raises for its employees in an effort to retain its top talent.

Business owners around the world have been scratching their heads when it comes to employee retention over the last few years. The pandemic seriously shuffled priorities around and getting team members to stay put and show up has been harder than ever.

Turns out, money and flexibility are the way to go, as Microsoft has announced some hefty pay increases to its compensation package, on top of the already flexible options available to employees.

Microsoft to “Nearly Double” Budget for Employee Salary Increases

In a memo obtained by Bloomberg, Microsoft announced that it would “nearly double” its budget for employee salary increases, as well as provide robust stock compensation increases to the tune of up to 25% for most employees. As for why, inflation obviously factored in, but Microsoft wanted to make it known that it’s about more than just making sure its employees can afford the increasing cost of living.

“While we have factored in the impact of inflation and rising cost of living, these changes also recognize our appreciation to our world-class talent who support our mission, culture and customers, and partners,” read the memo.

Microsoft did not disclose actual numbers when it came to these increases. However, according to Microsoft, the majority of the salary increases will be aimed at “early to mid-career employees,” which should notably improve the lives of those on the lower end of the totem pole in the tech industry.

While tech industry giants like Microsoft are enjoying record profits in recent years, their salaries haven’t matched up, which makes this change a pleasant departure. In fact, one survey found that late-stage startups are actually the best when it comes to employee salary numbers, so hopefully this move by Microsoft will spur the tech industry to start spending more on its lower-level employees.

How can your business retain top talent?

If you’re trying to retain your best employees, Microsoft is on the right track here: pay more. In a world where the cost of virtually everything is on the rise and the housing prices look more like phone numbers than legitimate offers, being able to meet your team’s needs as far as living is concerned is a great way to ensure your best talent will stay put.

However, money isn’t the only thing that employees are after when it comes to the job market in 2022. The pandemic realigned many priorities, and flexible work schedules and the ability to work from home are way up there for today’s employees. In fact, studies have shown that many employees would happily take a pay cut to keep working from home.

Still not sure how to hack this whole remote work policy thing? Your best bet is to get set up with the right digital tools, like remote access software and VPNs, to make sure your company isn’t vulnerable to an attack. Other than that, check out our guide to remote working tips, with quotes from professionals around the world.

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Written by:
Conor is the Lead Writer for For the last six years, he’s covered everything from tech news and product reviews to digital marketing trends and business tech innovations. He's written guest posts for the likes of Forbes, Chase, WeWork, and many others, covering tech trends, business resources, and everything in between. He's also participated in events for SXSW, Tech in Motion, and General Assembly, to name a few. He also cannot pronounce the word "colloquially" correctly. You can email Conor at
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