The chief executive officer of the search engine company spoke at the developers conference in Mountain View, California.
Executives at the company say they have no plans to give a pay increase to all employees.
At a special meeting on Tuesday, the topic of workforce pay was addressed and it was intended to focus on the strategy of the company in the years to come.
Ahead of the all-hands meetings, which are now conducted virtually, executives determine some of what they will discuss based on questions submitted to an internal forum called Dory. The question about inflation costs and employee pay received enough interest to get the attention of the workforce.
CNBC obtained audio of the meeting and watched a copy of the inflation question that was read aloud by the CEO.
With the U.S. inflation rate being as high as it is, some companies are adjusting their salaries to cover it. Is there any plan for the same thing by Google?
Frank Wagner is the vice president of compensation. He said that he understands the significance of inflation and compensation to the company's workers.
One of the reasons that inflation seems to be on the minds of a lot of people is that they want their compensation to work.
He said that the company leadership would be releasing letters to managers this week so that employees would know their compensation awards for next year.
He said that while the company is trying to pay competitively, it won't introduce companywide adjustments for inflation.
When price inflation increases, we also see increases in the cost of labor or market pay rate. Those have been higher than in the past.
According to Wagner, the pay rates should go up, but instead they want to adjust it and pay it by performance.
There are no plans to do an across-the-board type adjustment.
A company spokesman said that worker pay doesn't just come from salaries.
Bonuses and equity are part of the total compensation of employees.
At a time when the so-called "Great Resignation" is leading workers across the country to leave their jobs in order to find better pay, a new location or an exciting challenge, the comments made by Google are a good indicator of its priorities.
The Labor Department said that 4.2 million people quit their jobs in October, down from a record high in September. Consumers across the country are paying more for gas and groceries because of the high inflation rate.
The battle for tech talent is particularly intense as the Covid-19 pandemic has turned remote and flexible work into a benefit that many office workers now expect in the future.
While the company recently delayed its January return-to-office plans, it is not the norm for employees to come back to their offices three days a week. 50% to 60% of employees will be able to work from home after the swine flu, according to co-CEOs of the company.
Facebook has said that employees can request to work from home on an ongoing basis, while Lyft will not require its workforce to come back to the office until at least 2023.
Over the last year, the revenue and stock of the company has gone up, thanks to the success of the company's business model and rewarding employees who hold equity in the company.
The stock is up almost triple the gains in the S&P 500 this year, and advertising revenue rose by a whopping 43% in the third quarter.
The January return-to-work plan has been delayed.
