Microsoft Focuses on Retention With Enhanced Compensation

In an ever-evolving economic landscape, tech giants like Microsoft are making significant cutbacks in hiring. At the same time, the Seattle software stalwart is focusing on employee retention, hoping to secure its skilled workforce. That means merit-based salary increases and stock-based compensation, especially for early to mid-level careers, according to CEO Satya Nadella. And although new hiring may have cooled, the labor market is red-hot for specialized tech talent.

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Microsoft has also committed to increased pay transparency, which could stand to benefit skilled tech workers, especially software engineers, product designers, and project managers. Sources such as Glassdoor and crowdsource compensation data, giving at least a translucent look at the current state of tech salaries. At Microsoft, entry-level engineers can expect compensation in excess of $150,000, after bonuses and stocks, according to data from, which publishes verified salary information.

The market for experienced engineers, designers, and general technologists remains highly competitive, which favors workers over businesses. With Microsoft setting a public standard for compensation, other big tech companies like Amazon and Google will have to keep up — or risk losing skilled tech workers to the competition.