Google giving all employees a 10% raise next year? [Updated]

Google giving all employees a 10% raise next year? [Updated]

According to Business Insider, “a loyal reader” has tipped them off to what would count as a $20 million+ holiday bonus for all Googlers as well as a 10% raise across the board for all employees. Business Insider doesn’t say anything further about this “loyal reader”, including whether or not he/she is a Google employee.

According to the tip, Google will give each of its 20,000+ employee a $1,000 bonus and will pay the taxes on those bonuses as well. Additionally – and a much larger financial commitment – is the report that Google will be giving all employees a 10% raise at the beginning of 2011 as well as a percentage raise from their annual bonus. Obviously, if this is all true it points to two things: first, Google is doing well and second, it wants to make sure it’s keeping employees from running to Facebook and other companies.

UPDATE: Google got back to us rather quickly and had this to say:

While we don’t typically comment on internal matters, we do believe that competitive compensation plans are important to the future of the company.

So that is in no way a denial.

Here is what Business Insider is saying is an email from Google CEO Eric Schmidt to all employees:

I’m pleased to share some very, very good news with Googlers worldwide. But first let me say, on behalf of everyone on the management team, that we believe we have the best employees in the world. Period. The brightest, most capable group of this size ever assembled. It’s why I’m excited to come to work every day–and I’m sure you feel the same way. 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.

So that is why we’ve decided…to give all of you a 10% raise, effective January 1st. 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.

There’s more. We’ve heard from your feedback on Googlegeist and other surveys that salary is more important to you than any other component of pay (i.e., bonus and equity). To address that, we’re moving a portion of your bonus into your base salary, so now it’s income you can count on, every time you get your paycheck. That’s also effective January 1st. You’ll be receiving an email shortly with further details about these changes to your compensation. And one last thing…today we’re announcing that everyone will get a holiday cash bonus, too.
Googlers, you are what makes this company great, and our goal here is to recognize you for your contribution, in a way that’s meaningful to you. Thank you for all that you do, and for making Google a place where magic happens.

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