Google has redesigned its staff performance review process, reducing the number of reviews employees will experience each year from two to one, Google CEO Sundar Pichai announced on Wednesday.
According to The Information, the new review schedule is intended to boost morale while reducing the time employees spend preparing their assessments.
In surveys, only 53% of Google employees said the twice-yearly reviews were "time well spent," according to CEO Sundar Pichai, who reportedly told employees on Wednesday. Beginning in May, reviews will be held only once a year, but promotions will still be available twice a year.
The new system will also give Googlers new ratings, based on how much of an effect they have on the company. This can vary from transformative to moderate to insufficient impact. Google told employees that the changes are due to market shifts and a "renewed focus" on employee development.
Google employees will still be considered for promotion twice a year under the once-a-year review system. The change follows Meta's switch to once-a-year performance evaluations last year.
As employees are told to return to work, there is growing discontent in Silicon Valley. According to an anonymous survey taken on the website Blind, 62% of workers are unhappy with the return to work, which began last month.
Workers can now transfer to a new role while maintaining their current level. Previously, they would have had to transfer to the new job to be eligible for a promotion.
According to Bloomberg, many Silicon Valley companies are experiencing high employee turnover, with Amazon Web Services experiencing anywhere from 20% to 50% turnover.
According to a Business Insider report, Uber is also losing 20% of its workforce. According to a survey conducted last year, 72 IT workers plan to leave their jobs within the next 12 months. These could be the market forces driving Google to change.
As tech companies worry about hiring and retention, it's clear that tech workers have more clout than ever - even over how frequently their performance is reviewed. Not only Google, but Meta also decided last year to reduce its annual review to one, according to The Information.
Not everybody agrees that limiting reviews to once a year is a good idea. Annual reviews can be tainted by recency bias, according to ChartHop CEO Ian White in September. Some HR professionals even recommend holding reviews once a quarter. Employees, on the other hand, now make the decisions, and they want fewer reviews, at least at Google.