Google’s 10 percent raise – an attempt to retain employees

google_raiseIn an attempt to retain it’s work force and lure more talents, Google Inc has announced 10% raise to its 23,000 employees. Google has faced increasing number of it’s talents leaving for better paid jobs in startup companies. Reversing the trend of being considered Silicon Valley’s hottest job destination, Google has seen Facebook and other Internet firms poaching its staff.

Start-ups companies and private companies like Facebook can recruit much easily as they are yet go public. They can also lure workers with pre-IPO stock. It is found that such companies offer an average annual salaries of $120,000 for engineers.

Previously it was Google in the poaching end – grabbing workers from Yahoo and Microsoft. Now, with its pace of growth slowing, growing firms are snatching the Google workforce. It is not that Google has stopped hiring. Google added some 3,600 people last year alone. Google’s latest pay raise indicates that the management believes in retaining employees than hiring new employees.

Wall Street Journal reports that about 10% of (137 employees) Facebook employees had changed camp from Google. Apart from Facebook, Twitter, LinkedIn, and similar other startups are in the poaching spree. In different context, Google has accused Facebook for data lock-up and had stopped it from accessing the Gmail contact recently.

The employee who had leaked the internal memo of 10% across-the-board pay raise to the media was reportedly fired. Business Insider published the full memo here.

Some of the recent Ex-Google employee choosing to work somewhere else are – YouTube co-founder and CEO Chad Hurley, AdMob co-founder Omar Hamoui, and Google Maps and Wave creator Lars Rasmussen. Facebook’s No. 2 Sheryl Sandberg used to be Google’s former chief of sales and operations. Google Product Manager Bret Taylor left Google to became Facebook’s chief technology officer.

Of the more than 1,900 Facebook employees with resumes on LinkedIn, 300 — around 15% of Facebook’s staff — list Google as a past employer.

Will 10% pay raise help to upset the recent trend? What do you think?

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