Silicon Alley Insider’s Henry Blodget reports and the Wall Street Journal confirms that Google will be giving 10% raises to all 23,000 of its employees, effective at the beginning of next year. Blodget reports, moreover, that all employees will be getting $1,000 cash bonuses for the holidays. This is believed to be at once a morale boost and a way to keep employees from being poached off by the likes of Facebook.
Per the usual Google M.O., the company decided to focus primarily on salaries rather than bonuses or equity because that’s what data analysis told them to do.
Update: Ruh-roh: The Google employee who leaked the following memo has been found and fired.
From a leaked memo reportedly penned by Google CEO Eric Schmidt:
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.
Google’s gift to its employees is generous, and with some spin, it may prove to be a generous gift to you as well: Now you, too can tell your boss that you deserve at least a ten percent raise, because hey, Google’s doing it.
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