Monday, October 6, 2025
spot_img

Google Overhauls its Compensation Strategy for High Performance

spot_img
- Advertisement -

Google is overhauling its compensation strategy to better incentivize high performance among employees.

According to media reports, the tech giant will enhance bonuses and equity awards for top performers while slightly reducing payouts for those with lower performance ratings.

New Structure to Take Effect in 2025 Reviews

The revised compensation model is set to influence end-of-year reviews in 2025 and determine 2026 compensation outcomes.

The changes were announced in an internal memo titled Strengthening our performance culture, authored by John Casey, Google’s Vice President of Global Compensation and Benefits.

“High performance is more important than ever to achieve the goals we’ve set,” Casey stated, adding that more Googlers will now have the opportunity to earn higher ratings, which will significantly influence their bonuses and equity awards starting in 2026.

Focus on the GRAD Review System

At the core of the update is Google’s performance evaluation framework, known as Google Reviews and Development (GRAD).

Conducted annually, this system categorizes employees across five tiers — from ‘Not Enough Impact’ to the top level of ‘Transformative Impact’. Most employees typically receive a ‘Significant Impact’ rating, which is already considered a strong performance.

Under the revised policy, more employees will be eligible for the ‘Outstanding Impact’ rating, unlocking greater compensation rewards.

Expanded Budgets for Manager Discretion

Google plans to give managers increased discretionary budgets to reward top performers within the ‘Significant Impact‘ tier more generously.

This adjustment aims to provide additional motivation for high-performing employees without inflating overall compensation expenses.

Balanced Cuts to Fund High-Performance Rewards

To fund these enhancements, Google will slightly reduce the bonus and equity multipliers for staff in the ‘Significant Impact’ and ‘Moderate Impact’ tiers.

However, Casey emphasized that a ‘Significant Impact’ rating remains a strong performance marker and will still result in payouts above the target bonus.

These changes are budget-neutral,” he noted, “and overall we’re continuing to invest in comprehensive and highly competitive compensation and benefits.”

Aligning with Industry-Wide Trends

Google’s move comes amid a broader shift in the tech industry, where companies like Microsoft and Meta are tying compensation more tightly to performance.

While Google has not implemented sweeping layoffs, it is steering toward greater productivity through refined financial incentives.


Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates. Subscribe to our Channels. WhatsApp– Click HereGoogle News– Click HereYouTube – Click Here, and LinkedIn– Click Here.

spot_img

Editorial

Why TCS Deferred FY25 Salary Hike: Better Hike Ahead?

TCS had initially announced its annual salary hike during...

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

TCS Announces 4-8% Salary Hike for FY25, Lowest in Last 4 Years

Tata Consultancy Services (TCS), India's largest IT services provider,...

Must Read

Yes Bank appoints Archana Shiroor as CHRO Designate

An Indian bank, Yes Bank has appointed Archana Shiroor as...

Myntra appoints Nupur Nagpal as Chief Human Resources Officer

Indian fashion e-commerce company Myntra has announced the appointment of...

Leadership Development for a Hybrid Workplace

Leadership Development for a Hybrid Workplace A recent Accenture study...

SBI to Hire 18,000 Employees Across Departments in FY26

State Bank of India (SBI), India’s largest lender, has...

Zypp Electric to hire 3,000 women delivery partners by 2022

EV logistics company, Zypp Electric has announced its plan...

TCS Announces Freshers Hiring Program for FY26, Details Here

Tata Consultancy Services (TCS), a global leader in IT...

Biorad Medisys appoints Indranil Sen as Group Head – HR, Admin & EDP

A leading global specialty manufacturer of a large portfolio...

Related Articles

SightsIn Plus
SightsIn Plushttps://sightsinplus.com/
SightsIn Plus is an India’s leading high-quality people-focused monthly HR Magazine and provides up-to-date HR News, Leadership Announcements, Best HR Practices and Insights by Global CHROs, CEOs, HR Advisors, Business Managers and HR Heads on topics of interest to HR professionals. To subscribe SightsIn Plus, HR Magazine please visit- https://sightsinplus.com/subscribe/