Tech giant Google has noted that it will not raise the salaries of its employees across the board to match inflation. The development was announced by Google’s vice president of compensation, Frank Wagner, reportedly during an internal Google meeting. The question was raised by a staff member and addressed by Google CEO Sundar Pichai during the meeting.
“We don’t have any plans to do any type of across-the-board type adjustment,” CNBC quoted Wagner as saying. Wagner noted that the pay increments would be performance based. “As I mentioned previously in other meetings, when we see price inflation increasing, we also see increases in the cost of labor or market pay rate,” Wagner said. “Those have been higher than in the recent past and our compensation budgets have reflected that.”
He noted that inflation seems bother many employees and one of the reasons behind is that people are pretty eager to get their compensation that works. He said company leadership would be releasing letters to managers this week so employees will learn their compensation awards for the next year. A Google spokesperson told the news platform that employees receive bonuses and equity in their compensation packages.
According to a report by Reuters, Google will give all employees, including the company’s extended workforce and interns, a one-time cash bonus of $1,600 or equivalent value in their country this month. The latest benefit is in addition to Google’s work-from-home allowance and wellbeing bonus, to support its employees during the coronavirus pandemic. It is not clear, however, how much the company has set aside in total for the purpose.
Earlier this month, Google delayed its return-to-office plans for employees. The company had previously asked the US employees to return to the office by January 10, 2022. However, Google has currently put the plan on hold and will now come up with new plans regarding the return to the office, an email sent to employees revealed.
An earlier email had revealed that none of the US offices will adopt the hybrid work model that required the employees to return to the office by January 10. The hybrid work plan required the employees to return to the office at least three days a week. However, the company has now delayed the decision amid growing concerns over the new Covid variant found in South Africa.