Microsoft Employee Satisfaction Slips to New Low as Company Pauses Raises and Reduces Compensation

A recent survey by Business Insider found that fewer Microsoft employees feel they are getting a “good deal” by working at the company. In the “Employee Signals” survey, only 62% of employees responded positively to the question about their satisfaction with the balance between their contributions to Microsoft and what they receive in return. This is down from 69% in the previous year’s survey. The decline in satisfaction was noted before Microsoft announced a pause on raises and reductions in bonuses and stock awards.

Microsoft has been closely monitoring employee sentiment through surveys, as it helps gauge how well employees are feeling about work-life balance and compensation. In 2022, a low score on this question led to significant pay raises across Microsoft’s workforce to address growing dissatisfaction and prevent employees from leaving for competitors like Amazon. However, the raises were followed by layoffs in the industry, and by 2023, Microsoft decided to stop salary increases and reduce bonuses and stock awards.

Now, Microsoft is planning to restart performance-based raises for some employees during this year’s review cycle. If you are a Microsoft employee or have insights to share, you can contact reporter Ashley Stewart through the encrypted messaging app Signal or via email using a non-work device.