Google is overhauling its employee performance systems
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A revised performance appraisal system for Google employees will make company employees more likely to receive lower scores and less likely to come out on top, according to a report from CNBC (opens in new tab)detailing employee dissatisfaction with the revised Google Reviews and Development (GRAD) system.
At a recent meeting with all employees, company leaders reportedly revealed how serious the changes could be. Most notably, up to 6% of the tech giant’s employees could end up in a low-ranking category, a threefold increase from 2% previously.
The number of employees likely to score in one of the two highest categories drops from 27% to an estimated 22%.
Google performance ratings
Although the percentage of employees who ultimately score only average grades will remain virtually unchanged, with an increase of one percentage point, the change is likely to have an exhausting effect on motivation and satisfaction.
CNBC reports that employees in the highest category have “achieved the almost impossible” and “contributed more than we thought possible”.
The December company all-hands shows that many employees expressed concern about the changes. While the company has remained largely unscathed by the massive budget cuts that have plagued the tech industry in recent months amid global economic uncertainty, many believe the new GRAD changes could serve as a basis for layoffs.
Going forward, the company hopes to reward workers in a move that will see it “spend more per capita on compensation overall.” This, and the 23% year-over-year increase in headcount in the third quarter of 2022, could mean that Google is looking to improve average workforce performance overall, putting underperforming companies at risk.
Tech Radar Pro has contacted Google for further comment.
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