In 2022, ~200B dollars in revenue with ~221K full time employee means that the average employee makes 905K for the company annually. I am not even counting contractors here. Per-head revenue was 930K in 2021. The average MSFT full time employee makes around $110K and the cost of employment after factoring in things like insurance, etc. is likely $200K. Seems like a fair price since per-head revenue hasn’t increased and doesn’t make sense to increase salaries.
every company can benefit not giving bonuses what kinda logic is this
I am not talking about benefiting. I am talking more from a feasibility perspective. Like with the number of people, it’s not really too feasible to get raises or high stock equities at MSFT.
The raises talked about here are basically COL adjustments. This is a paycut.
Put it this way - the revenue per head should have increased at least more than inflation to warrant some sort of raise. Otherwise, it seems company performance has actually gone down. Looking at the data, I don’t believe it has. As a result, this seems justified.
Yet FY23 revenue will still increase by 7-10% while employees have faced layoffs, cost cutting, benefit decreases, and now a paycut.
Your compensation isn't a direct ratio to how much revenue you generate for the company. Factors such as how replaceable you are.
It is a good proxy, and much more easy to reason about vs. subjective criterion like replaceability. Additionally, replaceability is something applied to the individual whereas we are talking about aggregate, baseline raises for employees as a whole.
Why bootlick so hard? It clearly didn't save your job at wherever tf you got laid off from lol
Explaining business decisions isn’t really bootlicking. If your company makes 930K per-head one year and 905K per-head the next and inflation has increased quite a bit...then it follows you won’t get a raise.
They deserve a raise but ur explanation doesn’t make much sense. They have way more costs than just paying employees. Making products is expensive. Office rent/taxes is expensive. Utilities are expensive. Benefits are expensive. Legal fees. Saving for recession/future emergencies. I could go on
I don’t disagree with that. My point is if revenue per head has gone down y/y and cost of creating services has gone up due to inflation, then it makes sense that Microsoft don’t get raises.
hope Satya sees this bro 😭 #ReadyForBoot
Nothing like the Sundar bootlickers this week at Google after that I/O event.
A simple histogram would show you the average is irrelevant. It’s top weighted dramatically, of course
Revenue per head is a pretty good proxy metric to understand the general added value of employees. Of course, not everyone is making the same amount for the company but it’s a great rough approximation.
If you double your workforce you double your profits. Why would you ever perform layoffs?
Things happens when you hire in bulk. So for sustainability either you do layoffs or paycut .
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Love it when we pull each other down instead of supporting. Keep pandering to greedy investors and kick down normal people
I am thinking more from the viewpoint of the business. If the effective output per employee has not increased, then it’s not clear to me why workers deserve a raise. Fundamentally, your TC should be proportional to the impact you drive. If the company is only make 800K-1M per head...then it’s tough to justify raises unless the impact per employee increases.
Where are you reading that output has not increased? Microsoft grew 16% last year, 2021 revenue was 170b, that’s huge for a company of that size. On top is raking in record profits Who determines what ratio & proportions to use? So if revenue per employee is 1m then should the employee be paid 30% or 50% of that? By that logic startups with no revenue or little revenue should pay 🥜. You pay for the future growth and value the employees bring. inflation is crazy high, no increase in salary is basically a pay cut while investors make money. This is not acceptable.