New Delhi, May 7: Google has reportedly announced major changes to how it evaluates its employees' performance. The employee performance review system aims to give bigger bonuses and equity to those who perform well, while those who do not meet expectations may see a smaller bonus. As per reports, employees at Google have been notified about these changes to the way their performance is assessed and how bonuses will be distributed.

An internal email reportedly sent to employees earlier this week, viewed by Business Insider, stated, "High performance is more important than ever to achieve the goals we've set," wrote John Casey, Google's vice president of global compensation and benefits.  Casey further noted that the changes were being made to "further reward top contributors" within the company. TCS Rolls Out Full Quarterly Variable Pay to 70% of Employees Based on Performance.

Google reportedly evaluates employee performance annually through an internal system called Googler Reviews and Development (GRAD). Under this, an employees contributions are assessed on a scale ranging from "Not Enough Impact" at the bottom to "Transformative Impact" at the top. The rating an employee receives influences their bonus and equity allocation.

Reportedly, the majority of employees are placed in the third-highest category, known as "Significant Impact." Those demonstrating higher performance may be rated under the "Outstanding Impact" bracket, while the top-performing employees fall into the "Transformative" category. There is also a "Moderate Impact" tier, which sits between "Significant" and "Not Enough Impact" on the scale.

Reportedly, in an email to staff with the subject line "Strengthening our performance culture," John Casey mentioned that managers would now have the ability to assign the "Outstanding Impact" rating to a more number of employees than before. Casey also stated that Google would raise the discretionary budget provided to managers to grant more rewards to high-performing employees within the "Significant Impact" category. Meta Under Scrutiny As Independent Oversight Board Seeks Public Opinion To Restore or Remove Child Abuse Videos on Mark Zuckerberg-Run Platform.

Casey noted that the shift would remain "budget-neutral," indicating that those with lower performance ratings might receive smaller bonuses and equity as a larger portion of the budget is directed toward top performers.

(The above story first appeared on LatestLY on May 07, 2025 07:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).