Microsoft Admits it Pays White Employees Less than Minorities

Microsoft acknowledged in a diversity report that it pays white employees less than minority employees.

“As of September 2023, inside the US, 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,” the report states. “Specifically, for those who are rewards eligible, US Black and African American employees earn $1.004; Hispanic and Latinx employees earn $1.004; and Asian employees earn $1.012 for every $1.000 earned by US rewards-eligible white employees with the same job title and level and considering tenure.”

The system is part of Microsoft’s “pay equity,” which “accounts for factors that legitimately influence total pay, including things like job title, level, and tenure. Our pay equity analysis adjusts for these factors in support of our commitment to pay employees equitably for substantially similar work.”

Microsoft also incorporated employee resource groups (ERGs) supported by the Global Diversity & Inclusion team.

Some of the groups explored “allyship” and indigenous groups.

“Indigenous at Microsoft helped Microsoft orchestrate its first Haka, a traditional Maori performance originating from New Zealand comprising vigorous dance and chant,” the description reads. “Haka is deeply rooted in Maori culture and holds significant cultural, historical, and social importance.”

The company also held an event called ERG Engage, which “brought employees together around the globe to learn and engage with the nine company-wide ERGs and accelerate their individual diversity and inclusion journeys. This provided space for employees, ERGs, thought leaders, and company leadership to connect, share critical conversations about issues impacting their communities, and celebrate progress.”

Some of the sessions held at the event included “decriminalizing LGBTQIA+ identity in India,” a “discussion exploring how to manage boundaries and relationships,” and a “conversation about persistence, access, and learning from failure led by the Military ERG.”