Google Gives Employees 10 Percent More
To maintain its reputation for innovation and retain key IT and development staff, Google has announced an across the board wage increase of 10%. Company chairperson Eric Schmidt notified each of Google's 23,000 employees in an email telling them "we want to be sure you feel rewarded for all your hard work."
In the current economic climate, the decision from Google has sent ripples of uneasiness through corporate America. Google's ability to increase wages in so substantial a fashion belies their financial good standing, and a broader shift taking place within the global marketplace. While search engines, digital marketing firms and domain hosting companies of all kinds continue to grow, develop, recruit and make profit, other more conventional companies declare bankruptcy or enter receivership on an almost daily basis.
Since the company is publically traded, one of the key factors in pushing through the wage increase was communicating its necessity to Google shareholders, many of whom are experiencing downsizing elsewhere in their stock portfolios and even in their own professions. The official statement from Google executives stated that the wage increase would increase morale, improve performance, and prevent the kind of "brain drain" that is an ever present fear among Silicon Valley tech upstarts.
An example frequently cited in the press is that more than 10 percent of current Facebook employees got their start at Google before trading loyalties in favour of the newer, more progressive social network. Schmidt was quoted in the Wall Street Journal as saying the company would do whatever it takes to attract the best candidates, and that the current shortage of top-quality engineers and developers in the Valley made the situation extremely urgent.
In a related development, several major IT companies, including Google, Apple and Adobe, have entered into a framework agreement which would promote ethical hiring and headhunting processes, creating a kind of free domain for tech hires and preventing American courts from becoming cluttered with "unfair recruitment" claims and ensuing trials. The apparent solution is merely to make sure current employees are happy and take the necessary financial steps to keep them that way.
Karen Streatham is a busy stay-at-home mum with two bright young boys, ages 3 and 4. When she isn't running after the men in her family, she likes sharing tips on cooking, gardening, parenting and even on domain hosting. Also, posting pictures and sharing stories about her wonderful children.
