Google is introducing a new performance review system expected to result in more employees at risk of receiving low-performance ratings. Additionally, fewer employees will be able to achieve high marks compared to previous years. During a recent all-hands meeting, Google executives revealed details about the new review system for its employees. This new system will take effect next year.
According to a report by CNBC, under the new system, Google estimates that 6 per cent of full-time employees will fall into a low-ranking category. This will put them in the high-risk category, which could even end up in termination. The report suggests that Google will take corrective action for these employees. Just for context, Google marks only 2 per cent of employees under the current system.
The challenges for Google employees won't end here. Even the top-performing employees will have to push harder to get the best rating possible. It will be more difficult for employees to achieve high marks, with Google projecting that only 22% of employees will be rated in one of the two highest categories, compared to 27 per cent under the current system. The new performance review system, which is set to take effect next year, includes a category called "Transformative Impact," which requires employees to have "achieved the near-impossible" and made "more than we thought possible" in order to qualify.
The new GRAD (Google Reviews and Development) employee review system was introduced earlier this year. Many employees are worried about the technical issues with the review system with a year-end deadline.
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In an internal meeting earlier this month, Google CEO Sundar Pichai did not rule out the possibility of a layoff. The lower 6 per cent of the employees correspond with the report claiming that 10,000 Google employees will be removed from their jobs in 2023. The new review system will aid the management to take that decision. The tech sector in US has been reeling with job cuts as most of the top brands are laying off a record number of employees. Compamies like Meta, Amazon, Twitter and Salesforce have decided to shrink their workforce.
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