Microsoft has announced that there would be no salary increases for employees this year. The decision was conveyed in an internal mail to the employees by CEO, Satya Nadella. The mail mentioned that the decision has been taken considering the uncertain economic conditions across many dimensions.
The mail mentioned that Microsoft never takes their decisions ‘lightly,’ and that this is an essential step to help the company move ahead in its future growth trajectory.
Following the decision, employees have expressed their frustration on Twitter, referring to the decision as a disrespectful gesture, and calling it a straight ‘slap in the face.’
While the company has declared no hikes, recently, on the other hand, Microsoft’s chief marketing officer, Christopher Capossela, had a conversation with the employees sharing a possible solution to this issue, as reported by Fortune.
Capossela explained internally how employees could potentially secure a salary hike and enhance their total compensation by striving to raise the company’s stock price. He emphasised that the stock price is the primary factor influencing employees’ compensation.
Additionally, Capossela also mentioned that strong quarterly results contribute to making the stock more appealing, which subsequently leads to an increase in everyone’s total compensation. The report further stated that the company’s stock price has already experienced a 33 per cent increase this year.
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