Google Develops Algorithm For Determining Employee Retention

Posted May 19, 2009

Google Inc. (NASDAQ:GOOG) is using their brain power to work on a new algorithm.   The algorithm doesn’t focus on the best ways to index the web this time.  They are working on an algorithm that is able to figure out what types of perks and pay that employees need to stay with the company and who is predicted to leave.

Google said that they are able to figure out which of their 20,000 employees will most likely leave.  The algorithm crunches data from employee reviews, promotion dollars involved, and previous pay histories.

Laszlo Bock, the VP of People Operations at the search engine company said that the algorithm helps “get inside people’s heads even before they know they might leave [WSJ].”

Omid Kordestani, Senior Advisor of the Office of the CEO and Founders at Google recently received $5.12 million when he exchanged 36,000 stock options at a price of $448.23.  Omid led the first group of employees that sold contextual ads for Google [BI].

Recently Tim Armstrong, the former COO at Google became the CEO and Chairman of AOL.  Since then he has been stealing some Google employees.

Google has been growing at a rapid pace.  Many of the employees that leave do so because they feel that they aren’t making a difference at the company.  The employees at Google are drifting to startup companies like Twitter and Facebook.