Efficiency and productivity are the new guiding principles in Google’s management. Employees of the American group will be more likely to receive a negative rating next year, after the implementation of the new performance evaluation system, according to information obtained by our colleagues from CNBC.
A tougher assessment
The upper echelons of the Mountain View company discussed the new classification system for Googlers, Googlers, at a meeting in December. This new review process, known as Google Reviews and Development, was announced earlier this year.
With the arrival of this management tool, company employees will be more likely to get a bad grade. About 6% of full-time workers may fall to the bottom of the rankings, according to early estimates. At the same time, the highest categories will be less accessible. So to be ranked in the new highest category, “Transformative effect“, an employee must have”achieved the impossible“and contributed”more than we thought possible“.
Google emphasizes transparency
At the end of the year, the arrival of the rating system creates controversy. A meeting was held between managers and employees on 8 December. Management ensures that their system is transparent and gives Googlers time to revert in the event of a bad rating. “I know it’s been hard. We know people need time to process feedback and act on it. […] Googlers should have plenty of time to get it right“, tried to reassure Fiona Cicconi, head of human resources at Google, during the interview.
According to recent Google Reviews and Development documents consulted by our colleagues, the group would consider “spend more per person on total compensation“, while wages are maintained 5 to 10% higher than the sector’s. Contacted by CNBC, Google did not respond.
In the eyes of some Googlers, this new classification system could be a quiet way to reduce size. For several months, companies in the technology sector have been going through a deep crisis. Several computer giants have been forced to lay off employees to drastically cut costs, such as Amazon, Twitter, Meta (Facebook, Instagram, WhatsApp) and Microsoft. Since the start of the year, the Nasdaq-100, a stock market index that tracks the valuation of the 100 largest US technology companies, has lost more than 30% of its value.
Google, for its part, was called to order in November by The Children’s Investment Fund Management (TCI), a major investor in the Alphabet group ($6 billion). “The company could be run more efficiently with far fewer employees“, confirmed Christopher Hohn, head of TCI at the time.