Google had to raise pay for all employees by 10% as it “work for food” program was not cutting it anymore. Google offers free food to lure in younger workers but pays them very little. The program has become unpopular with many Google employees and they are leaving for greener pastures. It is estimated that 10% of Facebook’s employees are from Google. That said the majority of Google employees are having a hard time getting hired because they are not a good fit for most companies, so they are stuck there.

Google hires mostly straight out of university and the pay rate is pretty low (by most standards) unless your are a student straight out of university. Google then sweetens the offer with FREE food all day. For starving students they feel like they have arrived in the promised land. FREE food and get paid to surf the web! Woah! So they put in 20 hour days to get FREE food. They believed all the garbage that they came to change the world – Do No Evil. Sooner or later (more later) they wake up and realize, that it is all crap.

A few people in the company make boat loads of money, live in fancy houses, drive cars, eat at restaurants where as they are taking the bus or biking to work, eating at the cafeteria and living in dorms.

Google employees work hard (like employees in every other company) and they deserve the raise. As Google CEO acknowledged in his email to employees that “salary is more important to you than any other component of pay” like FREE food.

—————————————————————————–

CONFIDENTIAL: INTERNAL ONLY

GOOGLERS ONLY (FULL TIME AND PART TIME EMPLOYEES)

I’m pleased to share some very, very good news with Googlers worldwide. But first let me say, on behalf of everyone on the management team, that we believe we have the best employees in the world. Period. The brightest, most capable group of this size ever assembled. It’s why I’m excited to come to work every day–and I’m sure you feel the same way. We want to make sure that you feel rewarded for your hard work, and we want to continue to attract the best people to Google.

So that is why we’ve decided…to give all of you a 10% raise, effective January 1st. This salary increase is global and across the board–everyone gets a raise, no matter their level, to recognize the contribution that each and every one of you makes to Google.

There’s more. We’ve heard from your feedback on Googlegeist and other surveys that salary is more important to you than any other component of pay (i.e., bonus and equity). To address that, we’re moving a portion of your bonus into your base salary, so now it’s income you can count on, every time you get your paycheck. That’s also effective January 1st. You’ll be receiving an email shortly with further details about these changes to your compensation. And one last thing…today we’re announcing that everyone will get a holiday cash bonus, too.

Googlers, you are what makes this company great, and our goal here is to recognize you for your contribution, in a way that’s meaningful to you. Thank you for all that you do, and for making Google a place where magic happens.

Eric