During these difficult times, getting the right talent associated with your firm is a blessing. Apple and Meta, two companies that have constantly seen employee defections amongst others in Silicon Valley.
Apple has issued unprecedented stock bonuses to top engineers to avoid employee defection to Meta. Last week the company had informed a few engineers, in the hardware, software, operation, and design group department of providing them restricted stock units.
This was a very surprising move by the company, where the bonuses issued were from fifty thousand dollars to in some cases one lakh eighty thousand dollars. They were all paid in shares, and the perk was presented by managers for the high-performing employees.
Meta has in recent years hired about 100 employees from Apple, and Apple too has lured a few of its employees. Apple is waging a talent war in Silicon Valley and Meta is a threat to them. The two companies have major hardware releases planned in the next two years, as both will likely become arch-nemesis when they release augmented and virtual reality headsets and smartwatches.
According to sources, the stock grants were strategically timed. In the past company has awarded additional cash bonuses to employees but these were out of the blue. This bonus wasn’t a part of the normal compensation package, which includes basic salary, stock, and a cash bonus. These were given to ten to twenty percent of engineers in applicable divisions.
A few engineers who didn’t receive the bonuses were irked and felt the selection process was capricious. The value of a few stocks was equal to what a few managers get as their annual stock grant.
Facebook on the other hand has too significantly increased the salaries of its employees, as it wants to focus on Meta and hardware. They have stepped up their efforts to poach talent from different divisions.
Apple also is facing backlash from its employees regarding its ‘return to office’ policy which has led to engineering defections. Apple expects its engineers to work from the office for four to five days a week, whereas Meta and other companies are more relaxed with their policies. But with the new Omicron threat, the company has acknowledged that the workers are likely to stay home for the foreseeable future.
