Microsoft has announced a special one-time cash award for employees. The company has added an extra 10-25 per cent to their annual bonuses for the recently completed fiscal year. This gesture is aimed at recognising the significant contributions and achievements of its workforce.
In a companywide memo from Kathleen Hogan, chief people officer, Microsoft, the employees were informed that executives will not be eligible for this bonus, with the company prioritising higher percentages for employees at lower levels to ensure a fair distribution.
The special one-time cash award will be available to all employees in levels 67 and below, including hourly and equivalent positions, based on their fiscal year 2024 impact. The special cash awards are set to be distributed in September.
In the memo, Hogan emphasised the collective efforts and collaboration of Microsoft’s employees, attributing the company’s fiscal year 2024 success to their dedication. This special bonus is in addition to the traditional merit pay increases, regular bonuses, and stock awards that Microsoft will also fund this year. The bonus rate will be inversely proportional to employee levels, with those at higher levels receiving a lower percentage of their annual bonus compared to those at lower levels. The goal is to ensure that all eligible employees receive a meaningful amount.
Specific amounts and the overall budget for the special bonuses were not disclosed. However, it is expected that the awards will amount to thousands of dollars per employee, with some receiving even more.
Microsoft’s workforce in the Seattle region was over 50,000 strong four years ago, with global employee numbers growing from 1,56,000 to more than 2,30,000 despite recent job cuts.
