If you have been following TechCrunch (or any any other business news website) through Twitter, Facebook, Blog, RSS feeds or one/many of the numerous other obnoxious ways of following a blog, you would have noticed that some of the articles were around Google’s announcement of a pay hike of 10% across the board (Read more about it here) and counter-offers being made to people within the organization to get them to turn down existing offers from competitors.
An article on the GlassDoor website had an interesting thought:
Most people, even the best and brightest, go to work to make money. If they didn’t need the money, they’d often (even usually) do something else. Working is an economic thing.
from the article: What The Google Pay Raise Means
The author mentions that Google is in it’s adulthood, which is true. As rightly put in another article, the Mountain View company cannot just sell itself to prospective employees by claiming that it is “The Cool Place to Work”. Top talent looking to join the company would look at multiple factors like job/role description, compensation, career growth etc. While pay-hike and bonuses is a good incentive to retain people, sometimes that is NOT the only factor!
The most interesting fact is that Google (which I have heard from many is “the” place to work) is offering it’s employees mind-boggling counter offers to reject offers from companies like Facebook. It’s a known fact in the IT world that attrition is an arch nemesis of growth in human resources. Attrition forecasting in many parts of the world has become so important that it is slowly turning into a business skill that must be acquired by top executives in Human Resources and the top echelons of any IT business. The TechCrunch article on the extra-ordinary counter-offers talks about Google trying hard to retain it’s top talent! But an underlying message that a lot of business analysts in the past week have pointed out is that “it hurts general morale”. Why would you overplay the importance of one employee to the point that other employees feel crestfallen. I wouldn’t be surprised if some of the Google employees (even loyalists within the company) decide to use the Facebook card to cement their financial stability in the coming years.
It would be interesting to see how the company reacts in the coming years and how maturely would it handle the competition that it faces from companies who are in the same position where Google was a decade back. It’s not a piece-of-cake to fathom the fact that you are on the other side of the fence!
Change is inevitable! How one foresees the change, prepares for it and embraces it finally makes all the difference!