Media reports reveal that Google has no intention of adjusting the salaries of all employees for inflation.
While several companies have been adjusting salaries organisation wide in accordance with inflation, which is rather high in the US right now, tech major, Google, has no intentions of doing so.
Google staff do enjoy bonus and equity as part of their total salary, which also comprises significant benefits and flexibility.
Alphabet, the parent company has witnessed a rise in stock prices over the last year. In fact, it recorded profits to the tune of $18.9 billion for the fifth consecutive quarter. It also posted record revenue of $65.1 billion for the second consecutive quarter in October.
At a virtual meeting, where Sundar Pichai, CEO, Google and Frank Wagner, VP- compensation, Google were addressing employees’ queries about increments, Wager apparently told them that Google would prefer to pay as per performance instead of making adjustments for inflation. The Company will try to pay competitive remuneration but will not make any organisation-wide adjustment in salaries.
This week, employees will get to know what their compensation for the coming year will be, as letters to this effect will be issued.
The US is facing an acute shortage of labour right now, with millions quitting their jobs to leverage the opportunities being thrown up as the economy is on its way to recovery and businesses are opening up.