Compensation should be based on what you do, not who you are. We design compensation to be fair and equitable from the outset—but because these are human processes, it’s important to double-check them.
Each year we run a rigorous statistical analysis to make sure all new salaries, bonuses and equity awards are fair. We take into account things that should impact pay, such as role, level, location and performance. If we find any differences in proposed pay between men and women globally or by race and ethnicity or age in the U.S., we make upward adjustments.
Each year, we continue to improve our analytical approach. This year we included a higher percentage of Googlers in our analysis than before (now 93 percent worldwide), and for the first time we analyzed Googlers age 40 and over as a demographic group in the U.S. After thorough review, we increased compensation for 2 percent of employees to ensure that there were no inconsistencies for any demographic group. Increases totalled $5.1 million, and Googlers that received adjustments fell into every demographic category.
Ensuring fairness is a never-ending process, and our pay equity analysis is just one part of a larger effort to improve our practices. We know that employees’ level, performance ratings, and promotion history also impact pay, which is why we’re continuing to focus on all of our people processes to ensure that Google is a great place to work for everyone.
You can read more about our pay equity analysis methodology here.