Google revamps appraisal system to reward top performers
What's the story
Google is making changes to its employee appraisal and bonus structure, The Times of India reported.
The changes were announced by John Casey, the Global Head of Compensation at Google, in an internal email.
They are aimed at better rewarding top performers and are not expected to lead to any cost-cutting measures for the company.
System changes
New appraisal system to benefit top performers
The revamped performance review system will now enable more employees to secure the highest performance rating, "Outstanding Impact."
Employees who earn this grade during annual reviews can expect higher bonuses and equity in their 2026 compensation.
The company is also providing managers with a bigger discretionary budget, allowing them to reward employees who fall under the "Significant Impact" category, which is right beneath the top rating.
Bonus adjustments
Adjustments to bonuses for mid-range performance categories
To enable the latest changes, Google will "slightly reduce" the bonus and equity payouts for employees getting "Significant Impact" and "Moderate Impact" ratings.
Casey clarified that despite the lower bonus for these categories, those getting a "Significant Impact" rating will still get more than their target bonus.
Since it's part of a strategy to redistribute rewards and better recognize top performers, mid-tier employees may feel the impact of reduced bonuses.