Microsoft’s 2024 Diversity Report Highlights Key Workforce Gains & Pay Equity Initiatives

Microsoft has unveiled its 2024 Diversity & Inclusion (D&I) report, marking its sixth consecutive annual review and the eleventh year of sharing detailed global workforce data. This report reveals the company’s efforts toward building an inclusive, equitable workplace that reflects Microsoft’s mission of empowering individuals and organisations globally. With a sharp focus on both representation and equitable growth opportunities, this year's report is the company's most transparent yet.

Microsoft’s D&I advancements are interwoven with its broader business goals and aim to support an inclusive culture as the company approaches its 50th anniversary. The report underscores significant growth in employee diversity, particularly in expanding global representation and pay equity across all demographics.

Expanding Representation in Key Sectors

In line with the company's AI-driven initiatives, Microsoft has expanded its data collection efforts to include insights on a growing workforce in data center roles. In 2024 alone, the global population of employees in data center roles grew by 23.9 per cent, with the U.S. specifically seeing a 28.9 per cent increase. New self-identified (Self-ID) data captures Indigenous, military, and disabled employees globally, reflecting Microsoft’s evolving employee demographic.

In terms of gender representation, women make up 31.6 per cent of Microsoft’s core workforce, a 0.4 percentage point increase from the previous year. Women in technical roles also increased by 0.5 percentage points to 27.2 per cent. Additionally, racial and ethnic minority groups in Microsoft’s broader workforce have reached 53.9 per cent of the employee base, increasing by 0.6 percentage points over the last year.

Leadership Diversity and Equity Milestones

Microsoft’s report showcases progress in leadership diversity, where representation of Black and African American employees at the Partner and Executive levels grew to 4.3 per cent—a 0.5 percentage point increase. Hispanic and Latinx representation at the executive level rose to 4.6 per cent, up by 0.8 percentage points. These changes illustrate Microsoft’s commitment to cultivating a diverse leadership team and fostering equity at senior levels.

Pay Equity and Commitment to Reducing Wage Gaps

Microsoft also reiterated its commitment to pay equity. In 2024, the company expanded its analysis to incorporate global gender pay equity, combining data for women within and outside the U.S. The report suggests that maintaining and improving equity in pay, particularly as it relates to women and minority groups in senior roles, will help further reduce the unadjusted pay gap in the coming years.

Employee Sentiment and Inclusive Culture

The report provides insights from Microsoft’s Employee Signals survey, which gauges how employees feel about their roles and the company’s environment. In 2024, 76 per cent of employees worldwide reported feeling that they were thriving, defined by Microsoft as feeling energized and empowered to do meaningful work. The Daily Signals survey further indicates an increase in employees’ perceptions of Microsoft’s D&I commitment, scoring a 79 out of 100, a two-point increase from last year.

Employee awareness around allyship—a core value Microsoft has emphasized since 2018—has also grown. By June 2024, 95.6 per cent of employees reported understanding the concept of allyship, up from 65 per cent in 2019.

A Legacy of Inclusion: Microsoft’s Ongoing Initiatives

Microsoft’s 2024 report also details key initiatives that have shaped its inclusive culture over the past few decades:

1. Support for LGBTQIA+ Community: Microsoft expanded its anti-discrimination policies to LGBTQIA+ employees as early as 1989, setting a precedent for inclusion in corporate America.
  
2. Racial Equity Initiative: Launched in 2020, this initiative addresses racial inequities and provides targeted support for Black and African American communities in the U.S. Microsoft has set measurable progress targets to achieve by 2025.

3. Immersive D&I Training: In 2021, Microsoft introduced immersive training simulations to help employees practice skills around diversity and allyship, including bias recognition and microaggression responses.

4. Microsoft Software and Systems Academy (MSSA): Building on over a decade of reskilling initiatives, Microsoft recently expanded MSSA to provide IT training for military spouses, offering them portable, in-demand tech skills.

5. Inclusive Features in Microsoft 365: New features, such as pronoun displays and customizable self-expression options, were developed based on direct feedback from customers, employees, and partners, reflecting Microsoft’s commitment to user-driven inclusivity.

At the core of Microsoft’s D&I journey is a mission to empower every person and organisation globally. This vision shapes the company’s strategy and values, fostering a culture that prioritizes growth and innovation. Microsoft believes that diversity, combined with inclusive practices, is key to unleashing the full potential of its workforce.