On an unprecendent move in the talent management field, today Google announced a 10% raise for all employees worldwide, plus a 1000 USD Christmas bonus. The reasons? First to reward their employees for a fantastic year and a job well done; secondly to try to avoid losing talent to competitors. This salary increase has a cost of 1 billion USD… It’s clear that the war for talent in the IT industry is on and the price for employee retention is not cheap.

My question: is a payraise the best way to keep the top talent?

Read more about the raise here:
http://www.businessinsider.com/google-bonus-and-raise-2010-11
or here:
http://uk.ibtimes.com/articles/80323/20101110/google-gives-employees-1000-cash-bonus-10-salary-increase-in-2011.htm