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Microsoft Freezes Salaries for 2023

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Re: Microsoft Freezes Salaries for 2023

#391

Post by csomar »

thekashifmalik wrote: post #329

I don't understand the framing here; isn't salary dependent on job competition in the market (one which is currently full of layoffs) and has little to do with company profts? Bonuses are what are usually tied to company performance. I'm simplifying, of course, but trying to understand the issue.

There is nothing to understand. There are two classes: Shareholders and Employees. Always been. One take the risk and reward and one take a fixed salary. Some people want to have their cake and eat it too (ie: take a fixed/stable salary while also a slice of the profit).

Re: Microsoft Freezes Salaries for 2023

#392

Post by costcofries »

korginator wrote: post #365

With the rate of inflation and interest rates going up, salaried workers need a cost of living adjustment at the very least, even if we forget about a bonus or a big pay hike. This decision is unethical to full-time employees seeing the tidy profit they made. It's a clear signal to the employees not to expect any practical reward for hard work, what a great way to motivate people. This is yet another large and powerf…

This hurts junior employees the most. Tenured employees have equity as a large part of their comp, they are invested in the stock price, not the few % annual bump.

Re: Microsoft Freezes Salaries for 2023

#393

Post by 8n4vidtmkvmk »

diversionfactor wrote: post #106

And yet, at exactly this time last year: "Microsoft to Nearly Double Salary Budgets, Expand Stock Compensation" https://www.shrm.org/resourcesandtools/hr-topics/compensatio... So they are freezing after the doubling? This behavior seems skittish and an overreaction, especially given their continued profitability and high margins. Corporate executive behavior reminds me of interacting with ChatGPT: Exec: "What should…

If you're actually curious... https://i.imgur.com/uoGaVAa.png tl;dr it says be cautious about cutting compensation.

Re: Microsoft Freezes Salaries for 2023

#394

Post by WalterBright »

mydogcanpurr wrote: post #355
WalterBright wrote: post #335

Earlier quoted context omitted.

> The truth is every single aspect of every employee/employer relationship is political Employees are hired in order to create value for the company. Employees get jobs in order to get paid in exchange for that contributed value. It's not political. It's the Law of Supply & Demand. Employer and employee cooperate for mutual benefit.

> Employees are hired in order to create value for the company. Employees get jobs in order to get paid in exchange for that contributed value. Lots of tech employees get hired to grow their director's/VP's little fiefdom within a company. Higher interest rates hopefully will reduce this, but it's still prevalent at large tech companies. > It's not political. It's the Law of Supply & Demand. I wonder what Adam Smith…

> Employers sure do cooperate with each other against employees

As with all cartels, the employers above the table were cooperating with the cartel, and under the table were poaching.

> I don't want to cooperate with an entity that views me as an adversary.

I wouldn't, either. Nobody is making you or I.

Re: Microsoft Freezes Salaries for 2023

#395

Post by petersellers »

onlyrealcuzzo wrote: post #348
AverageDude wrote: post #330

I wish there was a political party who had guts to take on these kind of people. I wish!

What? And force a company that has mostly employees in the top 2% to pay them even more? I'm not sure the average person cares. To force them to charge less for their product? To hire people they don't need? What are you expecting?

You can increase the income taxes of wealthy people considerably (specifically income taxes, not business taxes). A 50%+ marginal rate will help motivate C-level execs to opt for re-investing profits into their business rather than into buybacks of their stock to boost their own personal income. At the same time you'd be helping to provide services that will benefit the lives of the bottom 90% of the country with higher tax receipts.

Wealth inequality has been getting steadily worse in the US for decades, and moves like what Microsoft is doing only make that worse.

Re: Microsoft Freezes Salaries for 2023

#397

Post by housemusicfan »

korginator wrote: post #365

With the rate of inflation and interest rates going up, salaried workers need a cost of living adjustment at the very least, even if we forget about a bonus or a big pay hike. This decision is unethical to full-time employees seeing the tidy profit they made. It's a clear signal to the employees not to expect any practical reward for hard work, what a great way to motivate people. This is yet another large and powerf…

[dead]

Re: Microsoft Freezes Salaries for 2023

#398

Post by lakecresva »

thekashifmalik wrote: post #329

I don't understand the framing here; isn't salary dependent on job competition in the market (one which is currently full of layoffs) and has little to do with company profts? Bonuses are what are usually tied to company performance. I'm simplifying, of course, but trying to understand the issue.

> isn't salary dependent on job competition in the market

Salary is dependent on the contents of the employment contract.

Re: Microsoft Freezes Salaries for 2023

#400

Post by dclowd9901 »

thekashifmalik wrote: post #329

I don't understand the framing here; isn't salary dependent on job competition in the market (one which is currently full of layoffs) and has little to do with company profts? Bonuses are what are usually tied to company performance. I'm simplifying, of course, but trying to understand the issue.

Yes, it is. You’re right. That’s how bean counters and HR and sr management see it: what’s the absolute minimum we can pay our people.

Wiser outfits stay above that fray and compensate commensurate with employee expectations too. If you’re not getting a CoL or inflationary increase, you’re getting a pay cut. Plain and simple.

AI writing all the code for companies isn’t here yet, so I think for now they’d be wiser to keep devs happy. Especially if they’re flush with cash.

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