Google is Raising Pay, Revamping Employee Reviews, Documents Show

Google has begun reworking its process for evaluating performance and is implementing changes that could increase wages as the firm seeks to lessen tensions between the leadership and employees on the issue of pay.

This week Google has introduced a brand new system for performing reviews known as GRAD, which means Google Reviews and Development. This is part of an effort to simplify the evaluation process and limit reviews to once per year instead of two times, and place more responsibility on the shoulders of managers instead of using peer reviews heavily as per internal documents that CNBC reviewed.

“Under this new process, we expect most Googlers will be modeled for higher pay than they would under the old Perf system and the overall amount paid will increase too,” one of the documents stated.

Google Search boss Prabhakar Raghavan made the same point during an internal town hall meeting on Friday, as per two people who have information on the matter. They did not want to be named since the information is confidential.

A Google spokesperson told me via email Google is “nothing else to share.”

Pay for employees has been a subject of controversy at Google. As part of the company’s annually conducted “Googlegeist” survey, which CEO Sundar Pichai conducts Google, belief is a crucial measure of satisfaction among employees, the employees have given Google the lowest marks in terms of how pay is in comparison to the compensation for similar positions in other businesses.

They also gave lower marks on the process for evaluations of performance and opportunities to grow their careers. The survey results were released in March, highlighting the issues Google faces due to”the “Great Resignation,” as workers quit their jobs at an alarming rate and tech companies scrambled for new talent.

Google Employees have been communicating their concerns directly to management and through the annual poll. In the All-Hands Meeting on December 12, Frank Wagner, Google’s vice president of compensation, replied to questions regarding whether the company would offer an increase in wages to tackle the skyrocketing inflation, mainly since Google’s revenues had soared during the epidemic, with the company’s stock price reaching a record in November.


Wagner stated that Google would not give an all-encompassing raise to keep pace with inflation, even though top executives have been granted salary increases.

Google is making significant modifications to how employees are compensated and promoted. As part of the GRAD system developed, management will decide promotion decisions rather than by a group of employees and managers. As evidenced by documents, employees may still apply for promotions twice each year.

How to be Promoted

The company has also gotten rid of its long-running tradition of long promotional packets. These were lengthy forms for employees to fill in that contained feedback from supervisors and colleagues. Managers will be able to make promotion decisions in a team instead of employees being required to ask for the promotion separately.

Google stated in March that it would try to make some modifications to its long-held “perf” process, which other companies in the field are replicating. The Information earlier reported some of the changes to performance reviews.

In the system’s new design, Google employees will get new tools to set expectations for their goals, also known as goals and key results (OKRs), according to an internal note.

Employees will also be able to have “regular check-ins” with their supervisors every quarter to discuss their career progression and other topics, according to the document, in response to the common complaint of workers.

To gauge employee satisfaction, Google is introducing a new scale with five levels.

The majority of staffers will fall in the middle of the spectrum, that “reflects the significant impact they’re making.” The two scores that are below middle grade include “Moderate Impact” and “Not enough Impact,” and the two above are “Outstanding Impact” and “Transformative Impact” for those who “perform above or below that high standard.”

The company also has a new system for promotion. The manager of an employee will fill out an assessment form to determine if the employee has demonstrated the necessary skills to be promoted.

“Googlers aren’t expected to perform next-level work already to demonstrate that they’re capable of next-level success,” one report stated. However, there will require an actual business requirement to promote the service.

“Googlers will then be considered for promotions if they demonstrate signals for success at that level of work,” Google said.