Google to give bigger bonuses to top performers by cutting other staff’s bonuses: Report
In a move that has sent shockwaves through the tech industry, Google has announced a new appraisal system that will see top performers receive bigger bonuses, while cutting the bonuses of other employees. The change is aimed at incentivizing high-performing employees to continue delivering outstanding results, but has raised concerns among some workers who may see their rewards reduced.
According to a report by TOI, Google has increased the number of employees who can receive the second-highest performance rating of ‘Outstanding Impact’, making them eligible for bigger bonuses and more equity. To accommodate this, the company will slightly cut bonuses and equity offered to employees in ‘Significant Impact’ and ‘Moderate Impact’ ratings.
The new system is intended to give managers greater discretion to allocate budget for bonuses, allowing them to reward employees who are making a significant impact on the company’s success. However, the change has raised concerns among some employees who may see their bonuses reduced as a result.
Under the new system, employees who receive a ‘Significant Impact’ rating will see their bonuses reduced by 10-15%, while those in the ‘Moderate Impact’ category will see their rewards reduced by 5-10%. The employees who will benefit from the change are those who receive an ‘Outstanding Impact’ rating, which is reserved for top performers who have made a significant and lasting impact on the company.
The change is part of a broader effort by Google to incentivize high-performing employees and recognize their contributions to the company’s success. The company has been facing increased competition in the tech industry, and is looking for ways to stay ahead of the curve.
Google’s new appraisal system is likely to be welcomed by top performers who will see their bonuses and rewards increase as a result. However, the change may be seen as unfair by other employees who may feel that they are being penalized for not meeting the new standards.
The move is also likely to raise concerns about the impact on employee morale and retention. If employees feel that their bonuses are being cut unfairly, it could lead to dissatisfaction and a desire to leave the company. Google has a reputation for being a highly desirable employer, and the company will need to be careful to manage the impact of this change on its workforce.
In a statement, a Google spokesperson said that the company is committed to recognizing and rewarding its top performers, and that the new system is intended to provide more flexibility and discretion to managers when allocating bonuses. However, the company has not commented on the specific details of the bonus reductions.
The change is likely to be closely watched by other tech companies, which may be considering similar moves to incentivize high-performing employees. However, the impact on employee morale and retention will depend on how the change is communicated and implemented, and whether employees feel that the new system is fair and transparent.
In conclusion, Google’s decision to give bigger bonuses to top performers by cutting other staff’s bonuses is a significant development in the tech industry. While it may be seen as a way to incentivize high-performing employees, it also raises concerns about the impact on employee morale and retention. As the company implements this new system, it will be important to ensure that it is communicated and implemented in a way that is fair and transparent, and that all employees feel valued and rewarded for their contributions.
