Intel is setting aside more than $2 billion for employee benefits
Intel is setting aside more than $2 billion for employee benefits
Earlier this month, Intel distributed a presentation to its employees in which it announced a more than $2 billion increase in its total compensation budget. The new budget includes a one-billion-dollar wage increase as well as a $1.4-billion increase in stock compensation. It will be distributed primarily to current employees, with a portion of the funds being used to recruit new employees.
It was reported that Intel stated during the presentation that the pay restructuring was "designed to enable Intel to win the fierce battle for talent in today's competitive market." The Oregonian reported that the presentation was attended by reporters from The Oregonian. It will "reignite" their company's culture while also "driving" the company's business strategy.
Every year, Intel pays approximately $4.6 billion in wages and benefits to its 21,000 local employees in Oregon, which is home to some of the company's largest manufacturing operations. It employs approximately 110,000 people in various locations around the world.
The new budget includes a one-billion-dollar wage increase as well as a $1.4-billion increase in stock compensation. According to the formula, it would amount to approximately $20,000 per employee if distributed evenly.
It will, on the other hand, be disproportionately directed at highly skilled employees and high-performing individuals. Intuit may be concerned about competitors poaching its employees, something Intel is well-known for doing.
Various company review websites have stated that Intel has a history of underpaying its technicians. Intel has denied this. Intel's meager annual raise is frequently cited in negative company reviews as a source of frustration. Additionally, Intel's manufacturing line has been described as "tense," particularly recently. Increasing paid time off and providing mental health support services are two of the ways Intel hopes to alleviate some of this tension.
This is necessary if Intel is to attract enough employees to staff its numerous planned expansions, which include a $3 billion addition to its Oregon campus, a $7 billion manufacturing facility in Malaysia, a third Irish manufacturing facility, and a planned manufacturing facility in Germany.
