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| Google won't raise employee salaries to deal with inflation |
Google executives acknowledged employee concerns about rising inflation. However, they said they did not intend to respond to wage increases company-wide.
The issue of wages was raised in a special session to focus on Google's 2022 strategy.
Ahead of the large-scale Google meeting (which is now taking place virtually), the executives decided what they would discuss based on questions posted in an internal forum called Dory.
With over 400 votes, topics related to inflation costs and employee wages have received enough attention in the workforce to gain attention.
Alphabet and Google CEO Sundar Pichai read this question: With US inflation soaring 7%, some companies are making large-scale wage adjustments to keep pace with inflation. Does Google have any plans in this regard?
Pichai asked Frank Wagner, the company's vice president, to speak and asked for compensation. Wagner began by understanding the importance of the company's employees in inflation and compensation issues.
“For a lot of people, inflation seems to be the most important thing, and I think one of the reasons is that people are very interested in getting compensation,” Wagner said. Company management will write to supervisors this week so that employees know their salaries for the coming year.
However, he said that while Google is trying to push competitively, it won't make company-wide inflation adjustments.
Google does not adjust wages due to inflation
As I've mentioned in other sessions, when price inflation rises, we also see an increase in labor costs or in market wage rates. These are higher than in the recent past and our salary budget reflects this.
"The company does not want to give a small bonus to everyone," he added. But instead, you want to modify and push it based on performance. We do not intend to make any type of modification on a large scale.
A company spokesperson responded in a statement to Wagner's comments regarding a performance-related salary increase. He said that workers' wages don't just come from wages.
“Employees receive bonuses and equity as part of their total pay, which also includes generous benefits and flexibility,” the spokesperson said.
Google's comments clearly indicate its priorities. This is when the rate of slag increases across the country.