In an email to staff, Google CEO Eric Schmidt said that the company’s management team believes that they have “we have the best employees in the world. Period. The brightest, most capable group of this size ever assembled.” And since they have the best possible team, they have decided to reward them. The company has therefore decided to give all of its employees a 10 percent raise, effective January 1. But that’s not all, Schmidt continued, in an email reminiscent of the Showcase announcement from the Price Is Right. “Today we’re announcing that everyone will get a holiday cash bonus, too.” The bonus is $1,000 for every Google employee. Google is even paying the taxes on the bonus, so that the people who get it will get it all.
The Business Insider estimates that the raise and bonus will cost Google about $1 billion, with $20 million going to the bonus alone. While the company can certainly afford it, the question is why? Schmidt explains that company surveys such as Googlegeist indicate that people would rather get the cash than equity or other perks that the company offers. Some outsiders are suggesting, however, that despite all the perks that come with a job at Google, the company is seeing a brain drain as “the best employees in the world” move on to other companies and potentially greener pastures.
This leaves another question unanswered. How will the Google-raise affect other major players in Silicon Valley? Will they be forced to offer their employees a similar raise to meet the expectations that Google has just set? With Christmas just a month and a half away, those lucky enough to have a job in Silicon Valley will probably see their stockings very stuffed this holiday season.
Read More at NBC Bay Area.
Read More at the Business Insider.