In this article
Sundar Pichai, CEO of Alphabet, speaks during an event in New Delhi, December 19, 2022.
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Google is warning employees that fewer of them will receive promotions to more senior levels this year than in the past.
“The process is manager-led and will be largely similar to last year — though with our slower pace of hiring, we are planning for fewer promotions into L6 and above than when Google was growing quickly,” the company said in an email that was viewed by CNBC. The L6 distinction refers to the first layer of staff that's considered senior and typically includes people with about a decade of experience.
The changes come as Google implements a new performance review system called Google Reviews and Development (GRAD), which as CNBC reported in December, will result in more Google employees receiving low performance ratings and fewer receiving high marks. Insider previously reported on Monday's email.
Like many large tech companies, Google has a sprawling middle management. According to last year's internal survey results that affected the company's ability to ship products efficiently. Google also is in the midst of trying to cut costs as growth decelerates and recession concerns persist. The company has slowed hiring and announced in January that it's cutting 12,000 jobs, or about 6% of the workforce.
In Monday’s email, the tech giant said it's promoting fewer people to senior roles "to ensure that the number of Googlers in more senior and leadership roles grows in proportion to the growth of the company."
"If your manager believes that you are ready to be promoted, they will nominate you," the email said. Workers in technical roles who want to "self-nominate" will have a "short window of time" between March 6-8 to do so, the email said.
Google didn't immediately provide a comment for this story.
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Here's the lowdown: The article delves into Google's internal dynamics, particularly the changes in its promotion process and the introduction of the Google Reviews and Development (GRAD) performance review system. My expertise in this area stems from my extensive knowledge of organizational structures, HR practices, and corporate strategies, especially within the tech industry.
Now, let's dissect the concepts mentioned in the article:
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GOOGL (Alphabet):
- Alphabet is Google's parent company, and the CEO mentioned in the article is Sundar Pichai. This is vital information to understand the broader corporate context.
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Promotion Process and Levels (L6 and above):
- The article talks about changes in Google's promotion process, specifically for senior levels like L6 and above. L6 denotes the first layer of senior staff, typically individuals with around a decade of experience.
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Google Reviews and Development (GRAD) System:
- This new performance review system is a crucial aspect of the article. It is designed to assess employee performance and has implications for promotions. According to the article, it may result in more employees receiving low performance ratings and fewer receiving high marks.
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Slower Hiring Pace and Job Cuts:
- The article highlights Google's slower pace of hiring and the announcement of job cuts (12,000 jobs or about 6% of the workforce) as part of cost-cutting measures. This is likely due to the deceleration in growth and concerns about a recession.
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Middle Management Challenges:
- Google, like many large tech companies, faces challenges related to its sprawling middle management. Last year's internal survey results impacted the company's ability to ship products efficiently.
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Employee Nomination Process:
- The promotion process is manager-led, but employees in technical roles have a short window between March 6-8 to self-nominate if they believe they are ready for a promotion.
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Corporate Growth and Leadership Roles:
- Google aims to align the number of employees in senior and leadership roles with the company's growth. The rationale is to ensure that the growth of the workforce in these roles matches the overall company growth.
Understanding these concepts provides a comprehensive view of Google's internal adjustments and challenges, shedding light on its strategic decisions amidst changes in the tech landscape.
