Google bribes employees $1 billion to stick around

Aims to stop Google employee defections to Facebook or other rinky-dink startups.

By Richi Jennings. November 10, 2010.

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Every Google employee is getting a $1,000 tax free "holiday bonus" and a salary increase of 10 percent or more. At an estimated total cost of $1 billion over the next 12 months. In IT Blogwatch, bloggers refresh their résumés and curriculum vitae.

Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention Damn you, auto-correct!..

(GOOG)

Henry Blodget scoops up a scoop:

The 10% company-wide raise will take effect on January 1. ... Google will also give each employee an additional raise equivalent to ... [their] target bonus for the year. ... Google will pay the taxes on the $1,000.

...

$1,000 isn't much, but it's a lot more than nothing ... it's costing the company $20 million. A 10+% raise ... will probably cost the company $1 billion a year. ... It suggests that Google is still an awesome place to work. ... Google is now going the extra mile to keep its employees happy. ... The company's financial performance continues to be very strong..
M0RE

Seth Weintraub, late of this parish, uses the F-word:

The news comes as Google is fighting employee attrition to startups ... mostly Facebook. ... It isn't enough to keep Google's ... most entrepreneurial employees from eyeing the lucrative stock options that await them at riskier startups.

...

A Google spokesperson quasi-confirmed the authenticity of email ... "Competitive compensation plans are important to the future of the company."
M0RE

MG Siegler heard the same quasi-confirmation:

It’s just about as close as you can get to a “yes” without saying “yes”. And it’s definitely not a “no”, which if they were willing to comment, you’d think they’d say if the story weren’t true. ... It seems as if Blodget’s source is accurate.
M0RE

Chris Nerney hopes we're seeing a trend:

It'll be interesting to see how Wall Street reacts to this news, because while the search giant ... will make a run at $30 billion in revenue this year, that's still a big chunk o' change.

...

Google has suffered from a "brain drain" ... with employees leaving for a number of reasons ... dissatisfaction with their pay, frustration over excessive bureaucracy and aggressive recruiting by other companies.
M0RE

John Cook has the view from the Pacific NW:

Google has a major engineering center in Seattle and Kirkland, employing over 500 people ... The battle for talent in the region has heated up in recent months as big Internet companies such as Facebook, Salesforce.com, Hulu and Zynga have set up shop.
M0RE
 

And Finally...

Damn you, auto-correct!

 
 
Don't miss out on IT Blogwatch:

Richi Jennings, your humble blogwatcher
  Richi Jennings is an independent analyst/consultant, specializing in blogging, email, and security. A cross-functional IT geek since 1985, you can follow him as @richi on Twitter, pretend to be richij's friend on Facebook, or just use good old email: itbw@richij.com.

You can also read Richi's full profile and disclosure of his industry affiliations.

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