Many of you may have heard or read about Microsoft CEO Satya Nadella saying women should rely on karma, rather than asking for a raise, at the Grace Hopper Celebration of Women in Computing event. People were understandably upset, but Nadella has since then apologized and called it a ‘learning experience.’
Today we have the first real indications that apology wasn’t just PR noise. In a memo sent out to employees before the monthly Q&A session, Nadella outlines the three areas Microsoft will be targeting to improve diversity and inclusion.
The first is the area that started the controversy — equal pay for equal work. Nadella states that at Microsoft the differences between base pay across genders and races is consistently within 0.5%. Last year women in the United States with the same title and level earned 99.7% of what men earned. Do note that we don’t know how Microsoft defines level and job title. Nadella did include that Microsoft should also focus on opportunity to do equal work, which is just as important as equal pay, but sometimes overlooked in talks.
The second area is to increase diversity in the workforce. Nadella acknowledged the less-than stellar numbers Microsoft recently announced, and promised that they will be re-doubling their efforts. The third area is employee training “on how to foster an inclusive culture.”
Nadella has promised to revisit Grace Hopper Celebration of Women in Computing event next year, hopefully with some good news. You can read the full email acquired by GeekWire here:
In today’s monthly Q&A session, I want to give some perspective about the past few weeks — my trip to Asia , Gartner Symposium, the Adobe MAX conference, the Grace Hopper conference and Windows 10, as well as focus on Diversity and Inclusion (D&I) (and, of course, anything else on your minds). In November we’ll have a tightly focused conversation with Terry about Windows 10 more broadly.
Before our discussion, I want to provide additional thoughts from the Grace Hopper conference last week. Thank you to the many people who sent me comments and feedback over the past few days. It was a humbling and learning experience.
One of the answers I gave at the conference was generic advice that was just plain wrong. I apologize. For context, I had received this advice from my mentors and followed it in my own career. I do believe that at Microsoft in general good work is rewarded, and I have seen it many times here. But my advice underestimated exclusion and bias — conscious and unconscious — that can hold people back. Any advice that advocates passivity in the face of bias is wrong. Leaders need to act and shape the culture to root out biases and create an environment where everyone can effectively advocate for themselves.
Make no mistake: I am 100 percent committed to Diversity and Inclusion at the core of our culture and company. Microsoft has to be a great place to work for everybody. I deeply desire a vibrant culture of inclusion. I envision a company composed of more diverse talent. I envision more diverse executive staff and a more diverse Senior Leadership Team. Most of all, I envision a company that builds products that an expansive set of diverse and global customers love. As we make Diversity and Inclusion central to Microsoft’s business, we have the opportunity to spark change across the industry as well. This is the accountability the Senior Leadership Team and I own.
There are three areas in which we can and will make progress — starting immediately.
First, we need to continue to focus on equal pay for equal work and equal opportunity for equal work. Many employees have asked if they are paid on par with others at the company. Here’s what HR confirmed for me: Although it fluctuates by a bit each year, the overall differences in base pay among genders and races (when we consider level and job title) is consistently within 0.5% at Microsoft. For example, last year women in the US at the same title and level earned 99.7% of what men earned at the same title and level. In any given year, any particular group may be slightly above or slightly below 100 percent. But this obscures an important point: We must ensure not only that everyone receives equal pay for equal work, but that they have the opportunity to do equal work.
Second, we need to recruit more diverse talent to Microsoft at all levels of the company. As you saw in the numbers we recently released, we have work to do at Microsoft and across the industry. These numbers are not good enough, especially in a world in which our customers are diverse and global. To achieve this goal — and especially in engineering — we will have to expand the diversity of our workforce at the senior ranks and re-double our efforts in college and other hiring. Each member of the SLT will be goaled to increase Diversity and Inclusion.
Third, we need to expand training for all employees on how to foster an inclusive culture. Although we already offer training and development in these areas, we need to ensure the right level of accountability for modeling inclusive behaviors in all our work and actions. We all need to think about how Connects are written, performance feedback is delivered, new hires are selected, how promotion and pay decisions are made, etc. We need to focus on both the conscious and unconscious thinking that affects all these things, and mandatory training on D&I is a great place to start.
I am personally fully committed to these efforts and so is the rest of the Senior Leadership Team. We are going to work side by side with Gwen Houston, GM, Diversity and Inclusion, each month to drive progress on the three actions above, and Gwen and her team will continue to gather input, refine our existing plans and develop new approaches. I’ll report back to you in future all employee Q&A sessions starting in November.
When I took on my role as CEO I got advice to be bold and be right. Going to the Grace Hopper conference to further the discussion on women in technology was bold, yet my answer to a key question was not right. I learned, and we will together use this learning to galvanize the company for positive change. And I’ll certainly go back to Grace Hopper next year to continue the dialogue. We will make Microsoft an even better place to work and do great things.