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Google's 'Rest and Vest' Days for Senior Employees Are Over, Says CEO

54 points| ehershey | 3 years ago |inc.com

51 comments

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eduction|3 years ago

I’ve watched Google through its entire “journey” and I have to say it’s revealing how quickly they jettisoned their rhetoric about having, attracting, and retaining what they claimed were the best engineers in the world at the slightest whiff of economic headwinds.

Google was basically an infant in the dotcom boom/bust cycle and for a company weathering its first real economic challenge, and a mild one at that, it is sure notable how quickly they are throwing their employees under the bus.

While I don’t have much sympathy for someone who makes a ton of money working two hours a day, I have even less sympathy for executives who created, championed, and perpetuated the thinking that encouraged that to happen and now try to shift blame for their own philosophy onto the people they proactively lured into their firm.

Google execs thought they would continue to make tons of money by treating certain engineers like gods. The second they suspected that might not be the case they demoted these gods to lazy slacker deadweight. Don’t fall for it. The real deadweight is running the company. The real blame lies with the decision makers. They have been blowing hot air about what enlightened managers they are for 20 years and suddenly realize they might be revealed as frauds. Step 1, blame the victims of your incompetence, the people you will soon lay off. Smear them, with no honor or decency, hurting their chances of recovering from the very situation you put them in.

What a company.

glimshe|3 years ago

Completely agree. If they are going to remove deadweight, Google's leaders must be the first to go. My friends have been telling me about these inefficiencies for years and they have done nothing about it. Google has one of the greatest concentrations of talented engineers of any business in history. What did Google's leadership position these engineers to build?

When you look at Sundar Pichai, what exactly has he brought to the table? Which unique insights and strategic decisions from the CEO have made Google richer? It's not enough to point at the profit growth; Google owns a historical money-making machine in its Ads business and any half decent administrator could have increased its profits over the past years.

riku_iki|3 years ago

> What a company.

I didn't get this, Google is very profitable cash cow, so decision makers are doing their job better than competition.

kyrra|3 years ago

Googler, opinions are my own.

The article links to another piece talking about coasters[0]. Maybe this is from being a grunt senior SWE, I don't think I've ever met a coaster at Google (that gets away with it). People that I knew were slackers that I've worked with have been ushered out the door (or left on their own accord when they couldn't get promo, or were getting low ratings).

But I only interact with a tiny fraction of Google's total employee base, so there is a good chance this happens. We have too much work, and it's pretty obvious when there are coasters in our midst.

At a different company, a friend told me (who was a manager at this company) that he liked keeping coasters/slackers on his team, so that when he was told he had to fire someone (due to a company wide RIF (reduction in force)), he would have someone to sacrifice. But I've never heard of Google doing a RIF, so that doesn't apply here.

[0] https://www.insider.com/rest-and-vest-millionaire-engineers-...

jrockway|3 years ago

I dunno. I remember seeing quite a contingent of people not doing very much work at Google. You're walking to a meeting, pass by the game room, and it's always the same group of people playing ping pong no matter the time of the day. You try to grab lunch in a 30 minute slot between meetings, and there's a 45 minute long line to get food. Some people appeared to have a lot more free time than others. I certainly didn't have it.

longtimegoogler|3 years ago

Same. I have never met this proverbial rest and vest guy making 7 figures. Most everyone I know is scrambling to survive the performance reviews and get to the next level.

And if your productivity is very low you will get put on an improve or out plan.

desmosxxx|3 years ago

In my experience, these slackers do exists in meaningful numbers (maybe most of PIPed but I know at least a few long timers). That said, an even bigger problem is that the majority of people are incentized to slack in some capacity.

The impact & output of work within Google follows something like a perato distribution and yet the payscale is pretty flat. It creates this weird incentive system that almost encourages some base level of slacking unless you really want that promotion. And the difference in output makes it pretty hard to staff project and superstars often end up overworked which is hardly fair to the people doing the work.

This wasn't always the case, but is probably the norm at larger companies. It does seem to me like the way comp is modeled isn't ideal, but I'm definitely not a comp expert. My guess is that more discretion in pay would open companies up to all kinds of legal liabilities not to mention actual unfairness.

All that is to say that there is likely some extra slack that can be let go with little effect.

mike_d|3 years ago

(Ex-Googler)

These people aren't on teams you interact with. They have a low enough employee ID and/or a sufficient level that they just mill about on a passion project.

Melatonic|3 years ago

I do not work at Google but that is what I have heard from every friend of mine who does. In fact they have all said that it was almost a shock working there at first just how competitive it was. Then again I am sure there could be whole departments with completely different mentalities.

melony|3 years ago

Are you an employee who worked his/her way up or are you one of those who were acquihired?

kyl3B3nzl3|3 years ago

Title is excessively editorialized. Here is the ONLY thing said by anyone at Google about the subject, "Pichai revisited Google's plan to find efficiencies wherever it could, citing their plan for a 'simplicity sprint' and even discussing a possible reduction in headcount of up to 20 percent."

de6u99er|3 years ago

They just increased their staff by 20% within the past year. To me it looks more like Pichai wants to be perceived by stock holdets like he's doing something.

LarsDu88|3 years ago

Google is a de-facto ad search monopoly that can (and continues to be able to) afford dead weight. The real threat to Google is NOT a bunch of unproductive employees. They could probably run the ad search groups, android, g-mail, docs, and more with 10% of their current headcount if employees were worked to the bone. As a conglomerate, Alphabet can and does burn money in attempts to be innovative in a true sense with Google X, Calico, Verily, DeepMind, and more.

What Google cannot afford is for that incredibly talented dead weight that they have go off an make a COMPETING search engine and associated platform ecosystem (i.e. android, g-mail, chrome). That talent is not just sitting on its ass for no reason.

Google was started from a garage with bare-metal linux servers on hardware that is roughly equivalent to a Raspberry Pi cluster today. Making a search engine using someone else's cloud is vastly easier in 2022 than in 1999. Replacing the platform ecosystem lock-in is significantly harder, but doable with the right talent. Its in Google's interest to keep at least a proportion of that talent inside the company.

pyrolistical|3 years ago

Also the term "rest and vest" isn't use correctly here. "Rest and vest" refers to people who were acquired during an acquisition. They were too important to fire as they had vital information how the acquired company worked, but also they couldn't leave due to the golden handcuffs they were given in the form of options.

So they "rest and vest".

lordswork|3 years ago

Maybe this is how the term originated, but I have never heard it used in this context personally.

de6u99er|3 years ago

This will backfire very hard. Pichai just wants to deflect from his incompetence, by blaming those who made Google into what it once was.

It's his fault, that the "Don't be evil" motto had been erased from Google's culture. And it's his incompetence that made Google spending money in areas which were not only not profitable enough, but rather such money pits that he has to squeeze money out from profitable divisions so hard that it makes Google's users switch to alternatives like Apple or make them degoogle their lives.

He and the likes of his are a cancer that is growing at Google.

walrus01|3 years ago

The floating advertising and popups on that inc.com url are absolute cancer.

davewbrwn|3 years ago

Google has over invested in AI research projects and, while they are pumping out good research, they aren’t exactly pumping out great products. If I were Pichai I’d trim the fat there first. As for rest and vesters, it sounds like it refers to senior people who have climbed the ladder high enough to coast at “meeting expectations” which obviously is not good enough grounds for firing someone.

de6u99er|3 years ago

And there's also quantum computing.

KerrAvon|3 years ago

Why would I ever want to work at Google if the management setup tolerates this sort of organizational flotsam? What a poorly managed place it must be if there’s no chain of accountability for senior employees.

googlryas|3 years ago

It doesn't, in my experience. In the previous incarnation of the perf review system(which just slightly changed recently), there were effectively 3 buckets:

Needs improvement, meets expectations, and exceeds expectations.

The first one is "I'm going to get fired ASAP if I don't improve".

The second one is still viewed as a failure even though you're meeting every aspect of your current role.

The third one is "okay good, maybe i can go for promo if I string together 4 of these performance reviews as exceeds expectations"

jfim|3 years ago

There's a value to having slack. Most novel ideas come from having one's mind wander, not by being constantly busy with coding.

Obviously, there needs to be a balance between being constantly busy and just slacking all the time.

qdog|3 years ago

Conversely, a business needs to generate the most profit per worker, not the most work. This might work out well for Google, or it might not. All the work metric systems I've seen essentially become a random number generator that hit all teams, rather than pushing up the top performers.

Although Google's cash cow is ad revenue, and it may be that they have decided to stop funding most other endeavors. I would expect some of the actual 'rest and vest' people were on some of the many projects Google cancelled and weren't successfully moved to a new project (or ended up being part of something they just don't care about, but can't quit).