Google Refused to Raise Employees Pay

Despite acknowledging the rising inflation concerns, Google refused to increase the companywide pay of its employees. According to the Labor Department, the Consumer Price Index (CPI), in November, spiked by 6.8 percent, compared to the same month last year.

Google refused company-wide pay raise demands

The issue of pay raise was addressed on Tuesday by the biggest search engine’s workers in a special meeting convened to discuss the company’s 2022 strategy.

In an all-hands meeting, executives planned to ask some of the most anticipated questions from the company’s leadership, as the queries were submitted to Google’s internal platform, named Dory, before the virtual meetup.

Having over 400 “upvotes,” the question regarding the adjustment of salaries with respect to the rising inflation got enough traction from the top leadership.

Alphabet’s CEO Sundar Pichai read aloud the question, the audio of which was received by CNBC News.

As per the audio clip, employees noted many companies have been increasing the pay of their employees, amid the rising inflation rate in the United States, which has increased up to 7% lately. Thus, according to the clip, the employee asked Google about its pay plans for its workers.

Following the question, Google’s vice president of compensation, Frank Wagner, took the floor. He acknowledged workers’ concerns right away about the rising inflation and their concerns about compensation. He noted the issue of inflation has occupied many employees who want to get their compensation from the company.

In addition to that, he asserted managers would get their letters from the company soon, in which the compensation issue will be discussed for the next year.

However, he continued that despite the fact Google pays competitive salaries to its workforce, the tech giant will not introduce any company-wide inflation adjustment package.

Wagner asserted that whenever inflation happens, the cost of labor also increases manifold; the company always tries to adjust this factor in its compensation budget.

Likewise, Wagner noted that even if the market pay rate goes up this time, Google will not compensate all workers with “smaller increments,” but will introduce a performance base pay raise.

This will obviously not cover all the employees at the same time.

Google’s profits soared massively during the pandemic

Apart from Wagner, a spokesman of Google also echoed Wagner’s remarks, refusing to give an across-the-board pay raise to the workers. According to the spokesman, workers also receive bonuses and equity while working at the company.

These remarks from the search engine giant came at a time when workers have already been leaving jobs in big numbers, under great resignation, in pursuit of better pay.

In total, almost 8.6 million workers left their jobs during September and October this year, prompting the shortage of workers at many places.


Google’s profit skyrocketed during the pandemic, as the locked-down world used the services in unprecedented numbers. This encouraged employees to ask questions about the across-the-board pay hike, which Google is unwilling to do.