Social Governance

Apple Increasing the Salaries of its Employees in Response to Market Changes

Published on: 26 May 2022 03:10 PM

Because of increased inflation in the U.S, the $297 billion, with a 43% gross margin, the company seems ready to consider the cost of living this economic phenomenon seems to incur.

In April, the inflation rate was at 8.3%, which is the fastest number reached in 40 years. Apple committed to raising the hourly fees from $20/hour to $22/hour for corporate and retail workers.

However, it seems like such a raise was necessary; the unemployment rate was steady, which means workers still had the option to look for a better position if they were not satisfied with the current wage, especially in the Tech field. The Wall Street Journal reports a 43 percent rise in the number of IT jobs listed by U.S. firms in the first quarter of 2022 compared to the same period one year prior.

Google, Amazon, and Microsoft led the way; Amazon raised its maximum base salary from $160,000 to $350,000 in February, citing "a particularly competitive labor market" and "the need to remain competitive for attracting and retaining top talent," while Microsoft more than doubled its budget for merit-based salary increases. Apple could risk losing talent to the other giants, unable to retain them with the original compensation.

However, it is also the pressure coming from the different retail unions that convinced the company to make such decisions. In terms of working conditions, Apple has been facing complaints: an analysis released by The Verge last year revealed that employees were dissatisfied with excessive workloads and insufficient corporate communication, and their mental health deteriorated owing to extended hours working from home.

"Supporting and retaining the best team members in the world enables us to deliver the best, most innovative, products and services for our customers," declared an Apple representative. Stores in certain regions may have higher starting pay, according to the company.

Source : CNBC, Fortune