COMP NEWS – Google is changing its employee performance evaluation process in order to design a more performance-based compensation system. The change comes in response to rising tension between Google and its employees over remote work conditions and deductions in compensation for relocating.

Google is overhauling its performance evaluation process, implementing changes that will result in increased salaries, as the company tries to ease tension between employees and leadership on the issue of compensation.

This new performance evaluation system is called GRAD. The main focus of this system is to put more responsibility on Google’s managers instead of relying too heavily on other employees.

Starting this week, Google is using a new process for performance reviews called GRAD, which stands for Google Reviews and Development. It’s part of an effort to streamline the evaluation process, limiting reviews to once a year, instead of twice, and putting more responsibility in the hands of managers rather than relying heavily on peer reviews, according to internal documents reviewed by CNBC.

An internal document from Google states that this new performance system will result in higher overall compensation for employees.

“Under this new process, we expect the majority of Googlers will be modeled for higher pay than they would under the old Perf system and the overall amount paid will increase too,” one of the documents said.

Within this new performance evaluation system, there are 5 different ranks that employees can receive that can help determine compensation for that employee.

Most staffers will be in the middle, which “reflects the significant impact they’re making.” The two ratings below the middle are “Moderate Impact” and “Not enough Impact” and the two above are “Outstanding Impact” and “Transformative Impact” for those who “perform above or below that high standard.”

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