TL; DR: Intel recently shared a presentation with its employees saying that it is increasing its compensation budget by more than $ 2 billion. The new budget has added $ 1 billion in salaries and $ 1.4 billion in stock compensation. Most of it will go to current employees, but some will be used to attract new hires.
Intel said in a statement that the salary restructuring was “designed to allow Intel to win the fierce battle for talent in today’s competitive market,” according to The Oregonian, who saw the presentation. It will “rekindle” its culture and “drive” the company’s business strategy.
In Oregon, home to some of Intel’s largest manufacturing facilities, the company pays about $ 4.6 billion annually to its 21,000 local employees. Worldwide, it has around 110,000 employees.
The new budget has added $ 1 billion in salaries and $ 1.4 billion in stock compensation. Equally shared, it would amount to about $ 20,000 per employee.
However, it will disproportionately target highly skilled and high achievers. Intel might be concerned about talent poaching from its competitors, something Intel is infamous for.
According to various business review sites, Intel has historically had a habit of paying its technicians less. Intel’s meager annual growth ranks high in negative reviews of the company. The atmosphere in Intel’s manufacturing line is also said to be tense; lately, in particular. To that end, Intel wants to alleviate some of that stress with more paid time off and mental health support services.
Intel needs to make itself more attractive if it wants to attract enough workers to staff its many planned expansions, which include a $ 3 billion addition to its Oregon campus, a $ 7 billion factory in Malaysia, its third Irish factory and a planned factory in Germany. .