Google Knows How to Retain Employees, Or At Least Try (Updated)

Updated: Google reportedly fired the leaker, within hours.

A report by BI's Henry Blodget that Google is giving all employees a $1,000 bonus and a 10 percent raise has "sort of" been validated by Google. The original story, posted Tuesday night, said a "loyal reader" told BI that Google has given all of its employees $1,000 cash "holiday bonuses" and salary increases of at least 10 percent, effective Jan. 1, 2011.

According to BI, Google will also give each employee an additional raise equivalent to the employee's target bonus for the year. Employees will also be eligible for additional "merit raises." Finally, Google will pay the taxes on the $1,000 bonuses, allowing employees to keep the entire amount.

In terms of confirmation, Google kind of, sort of confirmed the story to TechCrunch. A Google spokesperson told them:
“While we don’t typically comment on internal matters, we do believe that competitive compensation plans are important to the future of the company."
Not the same as saying the story is valid, but "close enough for engineers."

It makes sense: there's been a brain drain among Googlers of late, and Google wants to stem the blood flow. Here's the text of the email announcement from Eric Schmidt to Googlers, as obtained by BI:

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.

We'll see if the outgoing flood slows ...
Tags:  Google, Facebook