Intel Boosts Employee Compensation by $2.4B in Race to Retain Top Talent

As competition in the semiconductor and general engineering sectors increases, Intel plans to retain employees and attract fresh talent with a pay boost.  

The global chipmaker recently announced a $2 billion increase in its pay budget to its workers. A total of $1 billion in salary and $1.4 billion in stock bonus is included in the new spending plan. The majority will go to existing staff, while a portion will be allocated for additional resources.

Intel claimed in a statement that the compensation restructure was “designed to enable Intel to win the fierce battle for talent in today’s competitive market,” according to The OregonianOpens a new window . The company has pledged to “reignite” its culture and “drive” its business strategy.

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“These updates are designed to enable Intel to win the fierce battle for talent in today’s competitive market while strengthening our execution,” Intel said in a written statement to The Oregonian. “These plans include, but are not limited to, updates to our salary structure, increases to our global merit budget, differentiated bonuses for top performers, increased stock targets, and more frequent vesting for restricted stock units.”

Depending on the job type and performance, every employee will get a different percentage. The wage increase is structured to reward staff in the most sought-after positions. Some positions will get significant gains, while others may see little growth.

Intel’s move comes on the heels of the ‘Great Resignation.’ A fresh study by IvantiOpens a new window divulges that the main struggle for IT departments is keeping up with digital transformation and retaining talent in technical roles.

“Employees are working differently than they have in years before, and we’ll continue to see an evolution of how people work as we move into the future and beyond the pandemic,” said Nayaki Nayyar, president and chief product officer, Ivanti. 

See More: CEO Pat Gelsinger Unveils a New Roadmap To Turn the Scales Back in Intel’s Favor

“The workloads and pressure to perform that have been placed on IT teams will only continue to increase. The only way to alleviate some of these stresses, and retain technical talent, is to implement automation into IT services so that team members can focus their attention on activities that drive the business forward and contribute to the business strategy,” Nayyar added.

The chip manufacturer has around 110,000 employeesOpens a new window worldwide. In 2021, Intel’s payroll in Oregon (where the business’s most sophisticated facilities and headquarters are located) cost the corporation $4.6 billion. The corporation employs over 30,000 specialists in that location solely, which amounts to an aggregate of around $150,000 per person. If the entire $2.4 billion were allocated evenly among its 110,000 employees, each would earn an additional $21,000 each year.

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