Everyone has a different way of looking at work, especially in the era of generative AI and tools designed to make productivity more effective and efficient. That aside, compensation plays a crucial role in boosting an employee’s morale and overall performance index at work.
In 2023, a leaked Microsoft insider poll revealed more than half of the employees at the company were ready to leave their jobs for a better offer at a rival company if the opportunity presented itself. Employees attributed this to the lack of a pay raise, which negatively impacted morale, prompting them to seek greener pastures elsewhere.
However, the tune has seemingly changed at the Redmond giant. According to an internal Microsoft survey seen by Business Insider, 65% of employees at Microsoft indicated that “there is a reasonable balance between what I contribute to Microsoft and what I get in return.”
For context, the survey is from October 2024 and shows a significant improvement in employee fulfillment based on their contribution and compensation. While speaking to Business Insider, a Microsoft spokesman indicated that the survey results were up by 3% compared to the previous survey conducted six months before.
Business Insider indicates that the results had dropped from 69% to 62% compared to the previous year. Microsoft uses this question to gauge the work-life balance and compensation satisfaction of its employees.
Depending on the score, Microsoft may be compelled to adjust the payment scale for its employees to avoid dismal productivity and potential departure of its staff to rival companies with better compensation packages.
Microsoft’s performance-based job cuts and better compensation for AI employees
At the beginning of the year, Microsoft announced performance-based job cuts across its departments, including the security division. Interestingly, the company has openly expressed its commitment to ramp up its security efforts amid a cascade of security failures that have raised concern among its consumers.
According to Microsoft CEO Satya Nadella:
“Security underpins every layer of the tech stack and it’s our No. 1 priority. We are doubling down on this very important work, putting security above all else, before all other features and investments.”
Over the years, subtle hints about Microsoft’s pay scale for its employees have managed to slip through the cracks. Still, it’s important to take this information with a grain of salt.
For instance, a leaked payment guideline suggests that the highest-ranking Microsoft employee receives a handsome base pay ranging from $231,700 to $361,500, a hiring bonus of up to $1.2 million, and $1 million in annual stock awards while the lowest-ranking employee at the tech firm receives $42,500 with no extra compensation.
Interestingly, Microsoft’s focus and commitment to its AI efforts are also reflected in the paychecks of its employees in its AI division. According to a leaked spreadsheet, an average Software Engineer in Microsoft’s new AI department earns up to $377,611.
Employees across other departments in the company seemingly receive the shorter end of the stick. For instance, the average salary of an employee in Microsoft’s Azure and Cloud division is up to $120,000 less than what an average AI Engineer takes home.
