3/28/23, 10:54 PM 2022 Diversity & Inclusion Report: Driving progress through greater accountability and transparency - The

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2022 Diversity & Inclusion Report:
Driving progress through greater
accountability and transparency
Oct 27, 2022 | Lindsay-Rae McIntyre - Chief Diversity Officer,
Microsoft

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

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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.

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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
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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
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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.

Six
Click here to ways we are innovating for inclusion
load media

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.

Tags: allyship, Diversity and Inclusion Report

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