Google Arranges 10% Raises, $1,000 Bonuses For All Employees
The next time you drink, eat, or maybe buy new furniture in the company of a Googler, consider letting him or her pick up the tab. Leaked info indicates that everyone at Google will get at least a 10 percent raise and a (post-tax) $1,000 bonus as part of an employee retention effort.
Credit goes to Henry Blodget for obtaining an internal memo sent by Eric Schmidt to the entire Google workforce. In it, Schmidt wrote, “[W]e believe we have the best employees in the world. Period. The brightest, most capable group of this size ever assembled. It’s why I’m excited to come to work every day–and I’m sure you feel the same way.”
Later, Schmidt continued, “So that is why we’ve decided…to give all of you a 10% raise, effective January 1st. . . . There’s more. We’ve heard from your feedback on Googlegeist and other surveys that salary is more important to you than any other component of pay (i.e., bonus and equity). To address that, we’re moving a portion of your bonus into your base salary, so now it’s income you can count on, every time you get your paycheck. . . . And one last thing…today we’re announcing that everyone will get a holiday cash bonus, too.”
This constitutes a rather startling series of moves, and hundreds of millions of dollars (or more) are sure to change hands as a result. It’s hard to look at the announcement in anything other than a positive light, however.
On a very basic level, the raises and bonuses seem likely to achieve the goal of making employees stick around. Moreover, they’ll encourage a whole new wave of people to send their resumes to Google.
Then, although the program will cost a lot, it’s an almost sure sign that Google’s doing pretty well this quarter. The company would be hard-pressed to justify this move to investors if it was experiencing revenue problems, after all.
In the end, the phrase “win-win-win” comes to mind.