Google’s giving a ten percent raise to every one of its 23,000 employees, along with a $1,000 bonus.
Because Google staff value salary more than equity or bonuses, says CEO Eric Schmidt in an email to staff, the company will also move a portion of bonuses into employees’ monthly pay and will award extra ‘merit bonuses’. The raises could cost Google a billion dollars a year, on top of the $23 million for the cash bonuses.
“We want to make sure that you feel rewarded for your hard work, and we want to continue to attract the best people to Google,” Schmidt wrote.
“This salary increase is global and across the board – everyone gets a raise, no matter their level, to recognize the contribution that each and every one of you makes to Google.”
The move comes in response to increasing difficulty in the tech industry in finding and retaining good people. While Google is consistently recognized as a good place to work, it sometimes has trouble hanging onto its staff; the company occasionally seems like something of a training ground for Facebook, for example, and many ambitious staffers leave to found or join promising start-ups.
And competition for key staff could be increasing. In September, an analysis of Bureau of Labor Statistics data by the TechAmerica Foundation found that after a year of shedding jobs, the tech industry as a whole was hiring again.