"Mr. Schmidt wrote that company surveys indicate salary is more important to Google employees than any other component of pay, such as bonuses or equity. He added the company was moving a portion of employees' bonuses into their base salaries, so they would receive some of it in every paycheck."
The wording was a little bit unclear to me, but I interpreted it to mean that, in addition to the raise, they're changing how their bonuses are delivered- rather than as one lump sum, they're being spread out over each paycheck. I could be mis-reading, though.
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"Mr. Schmidt wrote that company surveys indicate salary is more important to Google employees than any other component of pay, such as bonuses or equity. He added the company was moving a portion of employees' bonuses into their base salaries, so they would receive some of it in every paycheck."
Not sure, if this a 10% raise really.
The wording was a little bit unclear to me, but I interpreted it to mean that, in addition to the raise, they're changing how their bonuses are delivered- rather than as one lump sum, they're being spread out over each paycheck. I could be mis-reading, though.
This is correct. The two changes are independent, and stack.
I don't really like bonuses. I am going to work hard even if there is not a carrot on a stick, so just give me my money now.
But I'm betting people will notice when their bonus is smaller this year than last. This might backfire a bit.
That is exactly why I don't like bonuses.
Bonuses are a one time commitment, while raises compound. This is a big deal.
You're right. The distribution isn't clear. It doesn't sound like a flat 10% raise. Yet, it is a 10% raise, no?
There's also the thing that bonuses don't work as a motivation tool for the kind of work we do.
http://www.alfiekohn.org/managing/fbrftb.htm
Motivation tool they may not be, but they do make the competition hiring you away harder.