Alphabet Inc’s Google has introduced changes to streamline its employee performance reviews and promotions. This move will eventually result in increased salaries as the firm aims to ease tension between workers and leadership on the issue of compensation.
The internet giant will use a new process called Google Reviews and Development (GRAD). Correspondingly, this adjustment would limit reviews to once a year instead of twice.
In addition, it would place more responsibility in the hands of managers rather than relying heavily on peer evaluation. The move also followed Facebook parent Meta, which changed to once-a-year performance reviews last year.
In a survey, CEO Sundar Pichai mentioned that staffers gave the firm poor marks on compensation compared to other companies. Consequently, employees also lowered their ratings on the process of performance reviews and opportunities for career growth.
This result underscored the challenges Google faces from the Great Resignation. Subsequently, workers leave their jobs at a record pace as tech companies clamored for talent.
The new review system also came after a series of criticism from the employees. In the previous years, the staff voiced their concerns to management directly.
Last December, Frank Wagner, the firm’s vice president of compensation, responded to questions about a salary increase.
The staff asked whether the company would provide a pay raise to address the soaring inflation. They also pointed out that the business’s revenue boomed during the pandemic. At the same time, the stock price hit a record level in November.
However, Wagner explained that they would not implement a blanket raise to match inflation.
Nevertheless, Google currently moves forward to make fundamental changes to how workers could receive additional pay. Still, employees can still request promotions twice a year.
Google’s new promotion system
Google now ditches its long-held practice of lengthy promotion packets. Previously, there were long forms that employees needed to fill out, including reviews from bosses and co-workers.
Eventually, managers will make the decisions as a group instead of employees having to solicit them separately.
Last March, the tech firm said it would try to change its performance review process. In the new system, the staff will get a new tool to set expectations for goals and key results (OKRs).
Additionally, employees will have regular check-ins with their managers each quarter to discuss career development.
For ratings, Google introduced a new scale with five different levels. The new promotion system assesses whether the person has shown the skills required for elevation. This could range from transformative to not enough impact.