Google is giving all its 23,000 employees across the world a 10 per cent pay raise for the coming year and also $1,000 cash in “holiday bonuses” in the wake of losing employees to rivals.
The search giant is also planning to pay the taxes on the $1,000 holiday bonus so that its employees can retain the whole amount, USA Today reported.
Google employees are in high demand and a number of Silicon Valley companies have aggressively tried to head-hunt them from the internet giant.
The pay hike comes at a time when Google is reviewing its rivalry with competitors, especially Facebook to retain talent. Roughly 10 per cent of Facebook employees are Google veterans
Google CEO Eric Schmidt disclosed the news to all employees in an e-mail, saying that the company wants its employees to feel rewarded for their hard work. Schmidt also said that Google wants to continue to attract the best talents in the industry.
According to Business Insider, the pay raise will cost Google around $20 million.