Microsoft boosts pay to keep staff

Steve Ballmer. File photo / Supplied

Microsoft is making what it calls its biggest investment in overall compensation for its employees in its history, as it jostles to keep talent from fleeing to rival technology companies like Facebook, Google and Amazon.

Chief executive Steve Ballmer announced the changes in an email sent to employees.

All of Microsoft's nearly 90,000 employees worldwide will see more cash upfront as compensation is shifted away from stock awards.

As well, about 80 per cent of workers will now receive 100 per cent of their bonus and stock awards, up from about half of employees previously.