Google’s Performance Review System Offers Radical Change

A few years ago, Google implemented a substantial overhaul of its performance review system, a change that has had a widespread impact across the company’s extensive global workforce and generated considerable discussion on various review platforms and professional forums.

For technology professionals considering pursuing a career at Google—or those currently working at other companies who are interested in understanding how major technology firms assess talent—gaining a clear understanding of Google’s current performance system is crucial. Here’s a detailed breakdown of the changes. Let’s jump in!

What Changed in Google’s Performance Review System?

Historically, Google’s performance review model was largely based on a biannual system that categorized employees into a multitude of performance tiers. This process often involved peer reviews and the creation of substantial documentation. While this system aimed to be comprehensive, many employees perceived it as lacking transparency and being overly complex.

The new system, known as GRAD (Googler Reviews and Development) readjusts the ratings scale used for employees while streamlining the evaluation process. It was produced after an internal review showed that 47 percent of Google employees thought the search engine giant’s old performance review system, which featured two evaluations per year, was a waste of time.

GRAD’s other features seem designed to boost employee morale along with opportunities for promotion. “Promotions will happen twice a year and we’ll continue to invest in new ways for Googlers to grow their career through internal mobility,” read Google’s note about GRAD at the time. “Performance ratings will happen once a year and our new rating scale will reflect the fact that most Googlers deliver significant impact every day.”

With the introduction of its new review system, Google has shifted towards a more streamlined and arguably more direct evaluation process. The key changes implemented include:

• Twice-yearly reviews with standardized metrics: Instead of relying on potentially ambiguous or loosely defined goals, Google now employs more concrete and consistent metrics that are directly aligned with specific job levels and overall team outcomes. This aims to provide a more objective basis for evaluation.
• A reduction in performance ratings tiers: The previous model incorporated numerous and often finely differentiated performance categories. The new system simplifies these evaluations into a smaller number of clearer and more broadly defined bands. Examples of these bands might include "Meets Expectations," "Exceeds Expectations," and potentially others indicating different levels of performance. This reduction aims to make the evaluation outcomes more readily understandable.
• Stronger emphasis on manager feedback: Managers now play a more central and influential role in the evaluation process. They are expected to provide more direct guidance on performance and to actively mentor their team members throughout the entire year, not just during the formal review periods. This increased managerial involvement aims to foster more continuous development and feedback.
• Feedback delivered earlier in the review cycle: Employees now receive preliminary feedback and insights into their performance earlier in the formal review cycle. This proactive approach allows for a greater amount of time for employees to understand areas for improvement, make necessary adjustments to their work, and engage in constructive dialogue with their managers regarding their performance.

This revamped system is intended to enhance fairness and objectivity in evaluations, reduce the anxiety often associated with the review process, and enable more timely and effective course corrections for employees who need to adjust their performance or focus.

How Did GRAD Work Out?

Within a few months of implementation, GRAD placed six percent of Google employees into a lower category that might have put their jobs at risk, according to Business Insider. Under the old system, around two percent of employees had fallen into that category, which can shunt them onto a performance improvement plan, or PIP. Meanwhile, the number of Google employees in the top two categories tumbled from 27 percent to 22 percent.

By January, Google had laid off roughly 6 percent of its workforce, or 12,000 employees, but it’s difficult to tell GRAD’s influence on the cuts. Google has spent the balance of 2023 laying off workers in certain divisions while hiring in others. “As we’ve said, we continue to invest in top engineering and technical talent while also meaningfully slowing the pace of our overall hiring,” a Google spokesperson told Computerworld a few years ago.

How Are Google Employees Reacting?

Employee reactions to Google’s newer performance review system have been varied, as indicated by feedback shared on platforms such as Glassdoor, Reddit, and Indeed.

Common themes emerging from employee feedback include:

• Appreciation for transparency: Some employees have expressed that the clearer performance expectations and the provision of feedback earlier in the review cycle have contributed to an improved sense of confidence and understanding throughout the evaluation process.
• Increased pressure: Conversely, a number of employees report feeling that the new system has led to heightened performance expectations without a corresponding increase in the level of support, resources, or adjustments to workloads.
• Frustration around subjectivity: Despite Google’s efforts to standardize the evaluation process through metrics and clearer guidelines, employees continue to express concerns regarding the potential for subjectivity, with some reporting that factors such as perceived favoritism and individual manager interpretation still appear to play a significant role in the outcomes of reviews.
• Perceived intensification of scrutiny: Increased frequency and directness of feedback, while intended to be helpful, can also be perceived as a more constant form of evaluation.

Ultimately, while some employees at Google have welcomed the changes and perceive them as positive steps towards a more transparent and fair system, a significant portion of the workforce remains cautiously optimistic or even concerned about the potential long-term impacts of the new system on the company’s overall culture and the pathways for employee promotion and career advancement.

Google vs. Other Tech Giants: How Review Systems Compare

To better understand the significance and potential implications of Google’s changes to its performance review system, it is beneficial to compare it with the approaches taken by other major technology employers:

• Google:
  • Review Frequency: Semi-Annual (twice per year)
  • Structure: Manager-led evaluations with simplified performance rating tiers.
  • Notable Traits: Emphasis on clarity in performance expectations and a reduction in the number of performance tiers used for evaluation.
• Amazon:
  • Review Frequency: Quarterly (four times per year)
  • Structure: Utilizes a "stack ranking" system, which often involves comparing employees against each other, and heavily relies on quantitative metrics and data-driven assessments.
  • Notable Traits: Performance Improvement Plans (PIPs) are reportedly a more common occurrence within Amazon’s performance management framework.
• Microsoft:
  • Review Frequency: Semi-Annual (twice per year)
  • Structure: Primarily manager-driven evaluations, but also incorporates feedback from peers and often emphasizes both technical achievements and "soft skills" such as collaboration and communication.
  • Notable Traits: A focus on employee growth and development is often highlighted in Microsoft’s approach to performance management.
• Meta (Facebook):
  • Review Frequency: Annual formal reviews, supplemented by more frequent informal check-ins throughout the year.
  • Structure: Relies on a goal-based scoring system, where performance is heavily evaluated against the achievement of pre-defined objectives.
  • Notable Traits: Performance outcomes are often closely and directly linked to decisions regarding promotions and career advancement within the company.

While Google’s stated aim with its new system is to promote transparency and provide enhanced employee support through clearer expectations and more frequent feedback, it is evident that other major competitors in the tech industry employ significantly different philosophies. For instance, Amazon is known for its highly competitive and data-centric evaluation methodologies, which often involve direct comparison among team members. In contrast, Microsoft appears to strike a balance between evaluating technical accomplishments and assessing interpersonal and collaborative skills.

Pros and Cons of Google’s System

Every performance evaluation model involves inherent trade-offs, and Google’s approach is no exception. Here’s a breakdown of the potential advantages and disadvantages:

Pros:

• Earlier feedback enables mid-cycle adjustments: The provision of feedback earlier in the review period allows employees more time to understand areas for improvement and to make necessary adjustments to their work and performance before the formal review is finalized.
• Simplified structure reduces confusion around scoring: The reduction in the number of performance rating tiers and the emphasis on clearer metrics can lead to a more easily understandable and less ambiguous evaluation process for employees.
• Greater consistency across teams and managers: The standardization of metrics and the increased emphasis on manager training and guidance aim to promote more consistent application of the review process across different teams and managers within the large organization.

Cons:

• Some employees feel constantly evaluated, leading to stress: The increased frequency of feedback and the heightened emphasis on performance metrics may contribute to some employees feeling under constant scrutiny, potentially leading to increased levels of stress and anxiety.
• Less peer involvement could reduce nuance in evaluations: A greater reliance on manager feedback, with potentially less emphasis on formal peer reviews, might lead to a reduction in the diversity of perspectives considered during the evaluation process and potentially miss some nuances in an employee’s contributions.
• Promotion decisions may still lack transparency: While the performance review outcomes are a significant factor in promotion decisions, the exact mechanisms and criteria for promotions may still lack the desired level of transparency for some employees.

Ultimately, the actual impact and effectiveness of Google’s new performance review system will likely vary depending on the specific team culture and the individual practices of each manager. Given the size and complexity of Google as an organization, there is bound to be considerable variation in how the system is experienced across different departments and groups.

Why This Matters for Job Seekers

If you are considering pursuing a job at Google—or if you are in the process of comparing Google with other leading technology employers—it is essential to understand the company’s internal performance evaluation system. The model used for performance reviews can significantly affect several key aspects of your employment experience:

• Career growth: Promotions, salary increases, and opportunities for advancement are often directly and closely tied to the outcomes of performance reviews. Understanding how performance is evaluated will give you insight into how you can progress within the company.
• Work culture: The frequency and nature of performance evaluations can influence the overall work culture. More frequent evaluations might foster a sense of urgency and continuous improvement, but could also potentially contribute to higher stress levels.
• Expectations: Knowing the specific metrics and criteria that are used to evaluate performance will help you to understand what is truly valued by the company and enable you to prepare more effectively both before joining Google and in your ongoing work after you are hired.

Therefore, when evaluating a potential employer, it is just as important to inquire about and understand their performance review process as it is to consider factors such as salary, benefits packages, and the company’s overall mission and values.

How Google Reviews Influence Career Mobility and Compensation

Employees who consistently receive performance evaluations indicating that they "Exceed Expectations" are often on a faster track for career advancement within Google. These high-performing individuals are also more likely to receive higher annual bonuses and potentially larger grants of equity or stock refreshes as part of their overall compensation. However, given that manager reviews are now a central and arguably more influential component of the new system, the quality of an employee’s working relationship with their manager and their communication skills in articulating their contributions and achievements play a particularly significant role in the evaluation outcomes.

For candidates considering joining Google, it is advisable to ask insightful questions during the interview process to gain a better understanding of how performance is assessed within the specific team they are interviewing for. Key questions to consider include:

• How is individual and team performance measured on this specific team? Understanding the key performance indicators (KPIs) and metrics used will provide clarity on what is considered important for success in the role.
• What is the typical frequency of salary reviews and promotion cycles within the team or department? This will give you an idea of the potential timeline for career and compensation growth.
• What does mentorship and regular feedback look like on this team? Understanding the support structures in place for employee development and the frequency and nature of informal feedback can be crucial for your ongoing growth and performance.

Gaining this type of insight during the hiring process can help you to better assess whether Google’s performance management approach aligns with your own work style and career aspirations, and it can also help you to position yourself more effectively for long-term success within the organization.

Tips for Evaluating Company Review Systems as a Job Seeker

Google’s recent changes to its performance review system offer a relevant example of how performance evaluations are evolving within the technology industry. These changes also underscore the importance for job seekers to thoughtfully assess this aspect of a potential employer before making a decision.

When evaluating the performance review systems of different companies, consider the following key factors:

• Frequency: Determine how often formal performance reviews are conducted. More frequent reviews can mean more regular feedback and opportunities for adjustment, but they might also contribute to a more intense and potentially stressful work environment.
• Transparency: Assess how clearly the criteria and processes for performance evaluation are defined and communicated to employees. A transparent system allows you to understand what is expected of you and how your performance will be measured.
• Manager Role: Understand the extent to which managers are trained and provided with guidelines to ensure fair and consistent evaluations. The quality and consistency of management can significantly impact the perceived fairness of the review process.
• Employee Feedback Mechanisms: Inquire whether there are established channels or processes for employees to provide feedback on the review system itself or to seek clarification or challenge their evaluations if necessary.

It is always prudent to look for recurring patterns and consistent themes in employee reviews, particularly those that specifically address the performance evaluation process and any recent changes that have been implemented. This can provide valuable insights into the lived experience of employees under the current system.

Conclusion

Google’s revamped performance review system reflects a broader trend within the technology sector towards implementing more structured and more frequent evaluations of employee performance. While the company’s stated goals for these changes include increasing transparency, promoting fairness, and facilitating more timely feedback for employee development, feedback from current employees suggests that the new system may also introduce added pressure and a greater sense of continuous scrutiny.

For individuals considering a career in the technology industry, especially those targeting major companies like Google, gaining a thorough understanding of these internal performance management systems is a critical step in making an informed career decision. It is important to consider how your own work style, preferences for feedback, and career growth expectations align with the review practices of a potential employer. By carefully evaluating employee insights and asking pertinent questions during the hiring process, job seekers can better assess whether a company’s culture and performance management approach are a good fit for their professional goals.