Satya Nadella, CEO of Microsoft.
August is typically the month Microsoft tells employees if they’re getting a raise. But after freezing pay raises and cutting budgets for bonuses and stock bonuses for 2023, the company has instructed managers not to discuss budget cuts with employees during performance reviews.
Microsoft’s annual evaluation cycle typically begins in April with a performance review, mid-August onwards with communication on the impact of performance on compensation, and payouts beginning on September 15th. Three Microsoft employees who spoke to Insider of their evaluation and compensation details said stock-based compensation will account for a larger portion of their bonuses in 2023 than in previous years.
In May, CEO Satya Nadella told employees in an email seen by Insider that Microsoft would not raise salaries for full-time employees this year and cut its budget for bonuses and stock bonuses.
On the same day, Microsoft chief people officer Kathleen Hogan sent a separate email to managers asking employees to give them “special rewards,” meaning higher performance ratings that lead to higher salaries and bonuses. instructed to reduce Hogan said in an email that she “needs more people in the middle range.”
And now, Insider has seen a guide for managers conducting performance reviews, which provides guidance on how to respond when employees ask how budget cuts will affect their individual salaries. .
“Given the decisions shared in Satya’s (Nadella) email, it’s natural for employees to ask about the budget. It’s most important to focus on the degree and tie it directly to the reward.”
The guidance also states that managers should not use budget cuts to “explain” individual employees’ compensation decisions, but rather emphasize that employees’ own “contributions” determine their “compensation.” is written.
“Using factors other than budgets and employee contributions as an explanation for employee compensation undermines trust and credibility within the team.Each year we provide unique opportunities for contribution. and emphasize that expectations are being raised regardless of budget.”
[original text]
(Edited by Toshihiko Inoue)
Source: BusinessInsider
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