Google has decided to make a major change in its employees' performance evolution system, which will be applicable from 2026. After this change, some employees may get less bonus and stock package than before, while the best performing will be given more rewards. This move of the company has been taken for the purpose of promoting top talent and limiting payment to average performance.

Information given to employees from email

According to a Business Insider report, John Casey, Vice President of Google's Global Compensation and Benefits, gave this information through an email. He said that now managers will be able to give more employees 'outstanding impact' ratings, which is one of Google's top performance category. This means that now the employees who perform brilliantly will be given more bonuses and stock grants than before.

Mid performance growth will be limited

However, this change will be implemented without increasing the budget. This will affect those employees who fall into mid categories like “significant impact” or “moderate impact”. Casey said that significant impact rating will remain good, but its financial value will be reduced before.

Those who perform well will get a separate bonus

Google also stated that the managers will have a separate budget so that they will be able to give rewards to the employees who perform well, even if they do not come in the top rating. This will encourage hardworking employees.

There will be a change in Grad system

Google's current performance review system works on five levels: from “Not ENOUGH impACT” to “Transformative Impact”. Till now very few employees were able to reach the top two categories, but the top performors will get more opportunity to go up in the new system.

Google said that this change is necessary because the company is moving rapidly in areas like AI and Cloud Computing. For this, he needs talent that can perform high levels. This trend is not limited to Google just; Companies like Microsoft and Meta are also adopting performance based culture rapidly.

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