Google Gives all its employees surprise $1,000 cash holiday bonuses and 10% salary increase.
The said company-wide salary increase will take effect next year 2011. Also, Google will be giving each employee an additional increase equivalent to 1X the employee’s target bonus for the year and they will be eligible for additional “merit increases” based on their individual performance.
In addition, Google will shoulder the taxes on the holiday cash bonus so that the employees can take home the whole of it.
Google CEO Eric Schmidt explained in an internal email (see below), comes in response to feedback that Googlers value the salary part of their compensation far more highly than bonuses or stock compensation.
Employee retention has been a problem in Google. The company is doing its best to keep their employees happy and it also proves that the company’s financial performance continues to be very strong.
CONFIDENTIAL: INTERNAL ONLY
GOOGLERS ONLY (FULL TIME AND PART TIME EMPLOYEES)
I’m pleased to share some very, very good news with Googlers worldwide. But first let me say, on behalf of everyone on the management team, that we 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. We want to make sure that you feel rewarded for your hard work, and we want to continue to attract the best people to Google.
So that is why we’ve decided…to give all of you a 10% raise, effective January 1st. This salary increase is global and across the board–everyone gets a raise, no matter their level, to recognize the contribution that each and every one of you makes to Google.
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. That’s also effective January 1st. You’ll be receiving an email shortly with further details about these changes to your compensation. And one last thing…today we’re announcing that everyone will get a holiday cash bonus, too.
Googlers, you are what makes this company great, and our goal here is to recognize you for your contribution, in a way that’s meaningful to you. Thank you for all that you do, and for making Google a place where magic happens.