Google's Fight to Keep Talent

Google and Pay Raises: Turns Out, She's a Lot Like You.... (the broken link was removed)

Google attempted to do what your company either 1) has done, or 2) would do if you had the means:

1. You would try and buy your way out of a retention problem by giving everyone an across the board raise. Turnover is hard to figure out and stop. Sometimes you just have to throw money at everyone and hope that the turnover stops. It rarely does.

Google is managing people, just like every other organization, so you would expect lots of stuff would be the same. I don't actually recall other companies giving everybody a 10% raise (Google probably has more money than your company). I agree, that this is not likely to do much to turnover.

The possible impact in Google's favor is forcing others to pay so much that they can't afford to do so, and shrink or even go bankrupt. Especially small organizations. Yes they will use options, but salary is also part of the requirement.

I think also, anyone taking away that Google's other moves don't matter is making a huge mistake. Google's moves to create a great culture, let people work with other great people is helping Google. The draws of leaving for so many great people are high. If Google were to be less proactive in other areas the problems retaining people would be much harder. Some people seem to take the idea that people are leaving Google as a condemnation of their tactics. I think that is the wrong thing to take away.

Related: Google's Answer to Filling Jobs Is an Algorithm - Google's Innovative Use of Economics

Country Boundaries are Becoming Less Important

Knowledge workers are the new capitalists by Peter F. Drucker

knowledge workers are highly mobile within their specialism. They think nothing of moving from one university, one company or one country to another, as long as they stay within the same field of knowledge.
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Money is as important to knowledge workers as to anybody else, but they do not accept it as the ultimate yardstick, nor do they consider money as a substitute for professional performance and achievement. In sharp contrast to yesterday's workers, to whom a job was first of all a living, most knowledge workers see their job as a life.

I agree with Drucker. Singapore, Shanghi, Rio De Janeiro, Stockholm, Hong Kong, Berlin, Tokyo, Paris... and many more are going to be destinations for those that grow up in the USA. The numbers of people moving out of the USA in the next 30 years for jobs in the top 10% of the income bracke,t will be many multiples of what it was in teh last 30 in my opinion.

The USA has great advantages. China and Inida do too. But so do many other locations. The USA probably has more ability to absorb mistakes and I still feel it is the best situated, but the gap is much much smaller than it was 30 years ago.

Related: USA Losing Brain Drain Benefits - Long Term Economic Growth - Technology Centers of Excellent and Economic Growth - Keeping Out Technology Workers is not a Good Economic Strategy