Google is making changes to its salary construction: Here’s what it means for employees

Google has introduced it will modify its efficiency ranking system to reward excessive performers with bigger bonuses and fairness awards, whereas probably lowering compensation for lower-performing employees.
In an e mail titled “Strengthening our performance culture,” John Casey, Google’s vice chairman of world compensation and advantages, knowledgeable employees that extra of them may have the chance to obtain the “Outstanding Impact” ranking throughout annual opinions.
“High performance is more important than ever to achieve the goals we’ve set,” Casey wrote, noting that the changes are being made to “further reward top contributors” on the firm.

Google managers can now reward extra employees as high performers

The changes particularly have an effect on Google’s annual evaluation system generally known as Googler Reviews and Development (GRAD), which charges worker efficiency on a scale from “not enough impact” to “Transformative Impact.” Most employees usually fall into the “Significant Impact” class.
Under the brand new construction, managers shall be allowed to assign the coveted “Outstanding Impact” ranking to extra employees, which instantly impacts compensation. Additionally, managers will obtain elevated discretionary budgets to reward excessive performers inside the “Significant Impact” class.
However, Casey acknowledged that these changes could be “budget-neutral,” which means some employees will obtain much less to fund the will increase for high performers.

HR head says that this transformation would imply some employees could get much less bonus

“We want to be upfront that to fund this we’ll be slightly reducing the bonus and equity individual multipliers for Significant Impact and Moderate Impact ratings,” Casey informed employees within the e mail. “It’s important to note that Significant Impact will remain a strong rating — achieving it will still get you more than your target bonus.”
Google spokesperson Courtenay Mencini confirmed the changes, stating, “We’re making these changes to further reward top performers and continue our momentum across the company.”
The compensation changes come amid a broader pattern within the tech trade, with corporations like Microsoft and Meta implementing insurance policies to enhance efficiency stress on employees. These changes will apply to end-of-year opinions and 2026 compensation planning at Google.
“The above changes are budget-neutral, and overall we’re continuing to invest in comprehensive and highly competitive compensation and benefits,” Casey concluded in his e mail to employees.