Microsoft have come up with multiple initiatives for employees which aims at creating a more transparent workplace culture. Hence, Microsoft will start disclosing the pay ranges for all the advertised jobs across the United States.
Moreover, the tech giant has characterized their commitments to shape the workplace in four categories. These are mentioned as under:
- Empowering employee mobility
- Fostering a safe space for concerns
- Increasing pay transparency
- Conducting a civil rights audit
Increasing pay transparency
However, the most important one relates to increasing pay transparency. It is the continuation of company’s practice of prohibiting the interviewers from asking applicants their salary history which they started several years ago. Expanding on this pay transparency was part of four employee-environment changes. “Today we’re announcing another best practice with our commitment to publicly disclose salary ranges in all of our internal and external job postings across the US, beginning no later than January 2023 We are announcing that we are removing noncompetition clauses from our U.S. employee agreements, and will not enforce existing noncompetition clauses in the U.S., with the exception of Microsoft’s most senior leadership (Partners and Executives), effective today. In practice, what this means is those U.S. employees will not be restricted by a non-compete clause in seeking employment with another company who may be considered a Microsoft competitor.” Microsoft said in a blog post.
Applicants will get better insight
This is a big change within the tech industry. Microsoft was has long touted its commitment to equal pay. Therefore, the employees will be able to get a better insight regarding the compensation for a certain advertised position. Moreover, the partial elimination of a non-compete clause is a significant cultural change for Microsoft. Microsoft has made some big salary-related moves in 2022. They doubled the budget for merit-based salary. In addition, the tech company also increased the range for annual stock-based compensation.
It seems that Microsoft are following the salary moves of Amazon which is their largest competitor. Recently, Amazon announced to raise the base pay of corporate and tech employees from $160,000 to $350,000.
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