HomeBlogDeveloper2022 Diversity & Inclusion Report: Driving progress through greater accountability and transparency

2022 Diversity & Inclusion Report: Driving progress through greater accountability and transparency

Today I am sharing Microsoft’s 2022 Global Diversity & Inclusion Report, our fourth annual report and our ninth year of releasing our global workforce demographic data. This year’s data shows that globally we are a more diverse Microsoft overall today than we have ever been, with the highest year-over-year representation progress of the past five-year period for many employee communities. We’re motivated by our ongoing progress, and this year’s growth feels particularly meaningful in the context of significant challenges around the world.

As one of the most transparent companies of our size when it comes to the diversity and inclusion data we share, we are continually evaluating where we are now and where we aspire to be. This year, in addition to the extensive data we usually share, we’re adding new data on U.S. populations that include multiracial employees and those with military experience, as well as data on workforce exits by women and men globally and race and ethnicity in the U.S., and more detail on representation of women worldwide by geographic regions. We are also sharing additional pay analysis data to further highlight the opportunity for us to continue to make progress on representation at all levels of the company.

Key highlights:

  • For the first time, women now make up more than 30% of the Microsoft’s core* workforce worldwide at 30.7%, up 1.0 percentage point since last year. Since 2018, representation of women has grown at least 1.0 percentage point every year.
  • At Microsoft, we are committed to the principle of pay equity. Pay equity accounts for factors that legitimately influence total pay, including things like job title, level and tenure. As of September 2022:
    • Inside the U.S., all racial and ethnic minorities who are rewards eligible combined earn $1.008 total pay for every $1.000 earned by U.S. rewards-eligible white employees with the same job title and level and considering tenure.
    • Inside the U.S., women who are rewards eligible earn $1.007 total pay for every $1.000 earned by rewards-eligible employees who are men and have the same job title and level and considering tenure.
    • Outside the U.S., women who are rewards eligible earn $1.002 total pay for every $1.000 earned by men who are rewards eligible with the same job title and level and considering tenure in the combined geographies we report on.
  • Employees from racial and ethnic minority communities now make up 53.2% of Microsoft’s core U.S. workforce, up 1.9 percentage points from last year.
  • Representation across Asian, Black and African American, Hispanic and Latinx, and multiracial employee populations in our core U.S. workforce has increased for each group since last year:
    • Asian representation has grown by 0.3 percentage points to 35.8%, and has grown by 3.9 percentage points since 2018.
    • Black and African American representation grew 0.9 percentage points to 6.6%, the highest year-over-year increase in the past five years.
    • Hispanic and Latinx representation grew 0.6 percentage points to 7.6%, the highest year-over-year increase in the past five years.
    • Multiracial representation is 2.6%, up 0.1 percentage point from last year.
  • We’re energized by our strides toward fulfilling our commitment made in 2020 to double the number of Black and African American and Hispanic and Latinx people managers, senior individual contributors and senior leaders in the U.S. by 2025 as part of our Racial Equity Initiative.
    • For Black and African American people managers (below Director level), we’re 116.0% of the way to our 2025 commitment.
    • For Black and African American Directors, Partners and Executives — including people managers and individual contributors — we’re 92.0% of the way to our commitment.
    • For Hispanic and Latinx people managers (below Director level), we’re 46.5% of the way to our commitment.
    • For Hispanic and Latinx Directors, Partners and Executives — including people managers and individual contributors — we’re 57.6% of the way to our commitment.
  • 7.8% of employees in the U.S. self-identified as having a disability. This is an increase of 0.7 percentage points from last year.

This year, we added new reporting to continue to evolve how we reflect the many dimensions of identity within our workforce and to deepen transparency on our progress. For the first time, we’re sharing:

  • New dimensions of self-identification: We’ve added details on the population of U.S. employees who identify as multiracial. Increasing employees’ options to be more specific about their racial and ethnic identities helps us gather more actionable data, and we’ve heard from employees that having these options can help people feel more seen and included in the workplace. We’ve also expanded options for Asian employees in the U.S. to identify their backgrounds in further detail. The Asian community is the single largest racial and ethnic minority group within our company, encompassing more than 20 sub-identities. We aim to expand the detail we share in future reports once we have representative participation in this additional layer of self-identification.
  • Representation of U.S. employees with military status: Microsoft employs thousands of veterans and reserve service members around the world, and we offer employees the choice to identify as a person with military experience in 38 countries including the U.S. This data helps us to create more visibility for members of the Microsoft military community and better understand and support the diversity of our workforce. This year’s report shows that 4.7% of U.S. employees in our core Microsoft business self-identified as having served the U.S. Armed Forces or as having Protected Veteran status, a 0.4 percentage point increase from 2021. We aim to expand the detail we share in future reports once we have representative participation globally.
  • Workforce exits data: This year, for the first time, we’re reporting data on workforce exits of employees who have left Microsoft voluntarily or involuntarily. This reporting shows exits representation has declined 0.2 percentage points year over year for women globally. In the U.S., for Black and African American employees, exits representation has declined 0.3 percentage points year over year. Exits representation in the U.S. rose for Asian (5.1 percentage points), Hispanic and Latinx (0.4 percentage points), Native American and Alaska Native (0.2 percentage points), and multiracial (0.3 percentage points) employees since last year. Exits representation for Native Hawaiian and Pacific Islander employees was unchanged year over year.
  • Additional pay data: We have reported on pay equity since 2016 in support of our commitment to pay employees equitably for substantially similar work. While pay equity is a critical factor, it is only one factor in how we think about progress. To further highlight the opportunity to continue to make progress on representation at all levels of the company, we have chosen this moment to be even more transparent and also voluntarily disclose the unadjusted differences in median total pay for women inside and outside of the U.S., and for racial and ethnic minorities, Asian, Black and African American, and Hispanic and Latinx employees in the U.S. The median is the middle value of a data set. Therefore, median pay for a group of employees represents the value where half of the employees in that group are paid higher than that point and half of the employees in that group are paid lower. This analysis allows us to surface differences in median pay when we don’t adjust for things like job title, level, and tenure. As we continue to increase representation for women and racial and ethnic minorities at more senior levels, and continue to ensure pay equity for all, the gap between the medians will reduce. View additional pay data on page 30 of the report.

This year’s report also explores how we innovate for inclusion, setting the standard on accountability and transparency, advocating for employees and communities globally, and continuing to broaden career pathways into our industry.

The work of diversity and inclusion at Microsoft isn’t about a pledge or a performance, but about being deeply connected to the powerful impact on our lived experience when the people we spend our workdays with value inclusion and embrace difference. This is one of the reasons we are encouraged by what our employee sentiment measurement tells us. This year, for instance, when asked whether they feel included in their teams, employees responded to this companywide survey question with an average score of 86 globally.

As we maintain our momentum on increasing representation and strengthening our culture of inclusion, we’ll continue to listen, we’ll continue to learn and just as importantly, we’ll continue to act.

*Core Microsoft business represents 83.9% of the worldwide broader Microsoft workforce and does not include our minimally integrated companies.

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