Employee Compensation Costs Likely to Soar for Microsoft Corporation (MSFT)

If Microsoft Corporation (NASDAQ:MSFT) hopes to retain and attract top tech talent, then the company may have to share the wealth a little bit more. That’s the gist of the findings from a recent internal survey at the Seattle-based titan, as it looks like the competition for employees among the tech giants of the world is about to heat up once again.

CNBC has some insight into what that means for Microsoft and others.

While Microsoft is spending billions on acquisitions, employees aren’t seeing such generosity in their paychecks.

According to an annual companywide survey, obtained by CNBC, Microsoft employees said they’re less fairly paid in 2018 than they were in any of the past three years. When asked if “total compensation (base pay, bonus, equity) is competitive compared to similar jobs at other companies,” only 61 percent said it was, down from 65 percent in 2017 and 67 percent each of the two prior years.

In response to whether or not “people are rewarded according to their job performance,” 62 percent of employees agreed with that sentiment. That number is also down slightly from prior years. Chief People Officer Kathleen Hogan shared the results, and she notes that the company will do all that it can to attract and retain top talent.

“On compensation and benefits, we will continue to take a market-driven approach as we continue to invest, ensuring that our overall deal remains strong and differentiated,” she wrote.

Microsoft Corporation shares were trading at $101.97 per share on Thursday morning, down $0.52 (-0.51%). Year-to-date, MSFT has gained 20.29%, versus a 4.57% rise in the benchmark S&P 500 index during the same period.

MSFT currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 66 stocks in the Software – Application category.