Microsoft Boasts They Paid White Employees Less Than Non-White Employees with ‘Same Job’ while Xbox sinks and layoffs ensue

In its latest diversity report, Microsoft has openly stated that it compensates its white employees less than employees of other ethnic backgrounds in similar job positions, highlighting its commitment to a “pay equity” initiative.

This detail was disclosed in the 2023 Diversity and Inclusion Report, which emphasizes Microsoft’s adherence to the principles of diversity, equity, and inclusion (DEI).

The report boasts, “All racial and ethnic minority groups who are rewards eligible combined earn $1.007 total pay for every $1.000 earned by US rewards-eligible white employees with the same job title and level and considering tenure.” This statement from the Microsoft report was first brought to light by an unnamed source.

Further elaboration in the report specifies that “US Black and African American employees earn $1.004 and Asian employees earn $1.012 for every $1.000 earned by U.S. rewards-eligible white employees with the same job title and level and considering tenure.”

Clarifying what it means by pay equity, the report notes, “This pay equity data represents total pay,” and explains, “Our total pay analysis considers base, annual bonus, and stock awards at the time of annual rewards for rewards- eligible employees.”

The document also touts the company’s success in instilling what it describes as progressive values among its workforce, proudly stating, “As a cornerstone of our growth mindset approach to D&I, we consider understanding how to be effective allies key to activating a culture of inclusion.” Additionally, it reports a significant awareness of the allyship concept, with “96.4% of employees reported some level of awareness of the concept of allyship.”

Microsoft has faced criticism in the past for its DEI-related decisions, notably the decision to limit the number of white and Asian students that universities could nominate for a lucrative research fellowship, a move that has added to the ongoing debate about the company’s diversity practices.

 Microsoft decision to limit the number of white and Asian students for a research fellowship.

Microsoft was previously hit with criticism after it capped the number of white and Asian students that universities could nominate for a highly paid research fellowship. However, initiatives like this are often part of a broader effort by companies to promote diversity, equity, and inclusion (DEI) in fields where certain demographics are underrepresented. The policy is aimed at increasing opportunities for demographics that are statistically underrepresented in tech or research positions. These types of policies can sometimes be controversial, as they raise questions about fairness, equal opportunity, and positive discrimination. Others feel it is just plain racism.

Here are some additional details on Microsoft’s diversity and inclusion efforts:

  • Microsoft has pledged to double the number of Black employees in leadership roles by 2025. They aim to increase representation of all underrepresented groups in the next 5 years.
  • The company ties executive compensation to diversity goals. Managers must reach specific representation targets for women and minorities to earn their full bonuses.
  • Microsoft sponsors employee resource groups for minorities, women, LGBTQ workers, veterans, and those with disabilities. These groups provide mentoring and professional development opportunities.
  • In 2020, Microsoft launched a Criminal Justice Reform Initiative and committed $500 million to affordable housing and community revitalization. This aims to address racial inequities.
  • The company offers diversity and inclusion training courses to all employees. Topics include unconscious bias, microaggressions, allyship, and covering.
  • Microsoft partners with Historically Black Colleges and Universities to recruit tech talent and provide curriculum guidance.
  • To improve supplier diversity, Microsoft spends over $700 million annually with minority-owned businesses.
  • The company has endorsed pay transparency laws prohibiting employers from asking about salary history during hiring.
  • Microsoft publicly releases an annual Diversity and Inclusion Report sharing its workforce demographics and progress on inclusion goals.

In summary, Microsoft has implemented a wide array of policies, programs, and partnerships to advance diversity and inclusion both internally and through its business relationships and social impact initiatives. But some criticize its approach as going too far into discrimination against whites and males.

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