Obnews Tech Desk: Google has announced major changes in the performance evaluation system of its employees, which will be effective from the year 2026. The purpose of this change is to give more reward to excellent performing employees and limit bonus and equity package for average or low performance.

Information given through email

According to a Business Insider report, John Casey, Vice President of Google’s Global Compensation and Benefits, informed the employees through an email. He said that now managers will be able to give a large number of employees ‘outstanding impact’, which is one of Google’s top performance category. This means that now those who perform the best will be able to get more bonuses and stock grants than before.

Limited growth for mid -level performance

At the same time, Google intends to implement this entire process without increasing the budget. Under this, the increment of employees coming in the mid -performance category like “significant impact” or “moderate impact” will be affected. Although John Casey clarified that the “significant impact” would still be considered a good rating, its financial value will be slightly lower.

Those who do good work continuously will also get respect

Google also said that managers will have a separate budget, so that they will be able to reward employees who do good work continuously, even if they do not reach the top rating. This will also encourage those who are performing better with stability.

Changes will come in Grad System

Google’s Performance Review System Grad (Googler Reviews and Development) is based on five levels: not enough from impact to transformative impact. Till now very few employees were able to reach the upper two categories, but the new system would improve the chances of reaching the top category.

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Focus in AI and Cloud, other companies are also making changes

Google said that this step has been taken because the company is rapidly expanding in areas such as AI (Artificial Intelligence) and Cloud Computing and needs talent that can perform extraordinary. This trend is not only limited to Google, but tech companies like Microsoft and Meta are also moving towards performance based culture. Meta had recently made slander to remove weak performances.