The only reason for announcing the salary hike by the CEO of the company is to hold back the talented ones in the company.
Digital Desk: It's indeed very good news for the employees of Microsoft. The CEO informed the employees through an e-mail that the Microsoft company has "nearly doubled the global merit budget." Microsoft is also increasing the salary of the people who are in the middle of their careers in the company. The only reason for announcing the salary hike by the CEO of the company is to hold back the talented ones in the company.
Microsoft employees have high demand in the industry for the amazing task they do to empower Microsoft's customers and partners. In the Microsoft company, the work efforts of the leadership team members get recognition and are immensely appreciated. Microsoft makes long-term investments in each of its employees.
Microsoft, along with a few other companies like Amazon, in February 2022, has doubled the highest base payment to 350,000 dollars from 160,000 dollars for corporate and tech employees. Both Microsoft and Amazon's topmost priority was to rope in and retain talented youths; for that purpose, the company is making an additional investment in their compensation budgets. It can be clearly visible that big companies or multinationals rope in talented people instead of higher salaries.
The CEO of Microsoft, Satya Nadella, has told the employees that the company is making "a significant additional investment in the compensation programs which is far beyond its normal budget."
He added, "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 on where the market demands and on early to mid-career levels. Indeed the salary hike will have a positive impact on its employees. However, employees who have reached higher designations may not benefit from the salary hike compared to the recently joined employee."
Earlier in January, Google increased the salaries of four of its senior executives. Their initial pay was increased from $650,000 to $1 million. Chief Financial Officer Ruth Porat, senior vice president Prabhakar Raghavan (in charge of Google search), senior vice president and chief business officer Philipp Schindler, and Kent Walker, president of global affairs and chief legal officer, are among those who have received hikes.
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