Google executives told workers they won’t get a pay rise
Google executives know their employees’ concerns about increasing inflation. However, they do not plan to respond with a pay increase in the company.
On Tuesday, they addressed the topic of workforce salary at a special meeting intended to focus on the company’s strategy for the following year.
After Google’s meetings, conducted virtually, executives of the company chose subjects of discussion based on questions received to an internal forum. A question related to employee pay and inflation costs received more attention with around 500 upvotes.
CNBC received audio of the meeting. It reviewed a document of the inflation question, which Sundar Pichai (Alphabet CEO) reading it aloud.
Pichai said that some companies in the U.S. are making salary adjustments to cover the inflation, with the inflation rates at around 7%. Then he asked if there were any plans for Google to accomplish the same thing.
Pichai then welcomed Google’s vice president of compensation, Frank Wagner. He said that he realizes the importance of inflation and salary concerns among the employees.
Wagner said the company administration would release letters this week to managers to see their compensation awards for the following year.
However, he said that Google wouldn’t introduce companywide inflation adjustments while trying to pay salaries competitively.
Wagner said that when the company sees price inflation increasing, it also sees increases in market pay rate or labor cost. He then said that Google doesn’t consider giving smaller increases to everybody. Instead, the company wants to pay and adjust it by performance.
A Google spokesperson repeated Wagner’s remarks in a statement about the company raising salary based on performance.
The spokesperson said that employees receive bonuses as part of their total compensation, including plenty of benefits and flexibility. Google’s statements indicate its priorities at the
moment when the Great Resignation happens in the US, and a lot of people leave their jobs in the hope of a better salary and more exciting challenge.
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