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Google Inc.’s Compensation and Benefit Systems

Google Inc.

Google Inc is a renowned company which is known worldwide for its products and services that it provides through the internet. The company is an American entity based in Mountain View in California, boasting a unique and innovative head office. Google Inc was initiated by Larry Page and Sergey Brin as a private entity however, with the expansions of the business the company has become a public traded company. The company is a well known brand in the industry and famous for being philanthropic as well as heavily investing in employee relations and human resource management for its employees.

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Compensation and Benefit System

A compensation and benefit system is an integral part of the organizational strategy and its human resource function. The compensation and benefit system depicts the specific policy and guidelines for the salary and remuneration of the employees of the company while also providing the way the employees are rewarded for their additional work and effort. The compensation for overtime, attainment of objectives of the company and its goals and effort of the employees are provided in the system through the bonus plans, increment plans, pension plans and effective plans for providing motivation to the employees through intrinsic and extrinsic factors.

Compensation, Reward and Benefit System at Google Inc

The following sections depict the compensation, reward and benefit system that is employed by Google Inc.

Google Organization Culture

Google has a strong focus on using innovation and technology to build its organizational culture. The organizational culture of the company is focused towards its employees and the company explicitly stated in its vision that it wants its employees to be as committed to the business, and the products and services as they were when they were employed at their education institutions like Stanford. The same type of energy, ambition and innovation drive is required by the Google Inc., and in order to attain this, the company significantly invests in its employees. A case depicting human resource strategy at Google Inc provided that “the role of organizational culture in attracting the best talent in the industry” (‘Human Resource Management and Organizational Behavior’).

Rewards and Compensation

The rewards and compensation system at Google Inc is set such that it motivates the employees towards the long term success of the organization and the attainment of its strategic goals and objectives. While monetary returns are sufficiently present, aside form this Google also provides its employees with daycare, elder daycare centers as well as salons treatments, oil changing options, latest technology and gadgets as well innovative stock options (‘Strategic HR Planning at Google Inc’, 2009).

An article by Yoskovitz quotes Jeff Nolan on the rewards and compensation of Google. Jeff Nolan mentioned that “the rewards angle is interesting to consider, but I believe that the best employee satisfaction strategy is to constantly remove barriers that get in people’s way. Google is really good about this with their engineers, they create an environment that is as friction free as possible for people to exercise their creativity, while at the same time working in concert to execute on Google’s mission” (Yoskovitz, 2008).

Perks and Additional Benefits

Google Inc provides its employees with extensive perks and benefits which it also promotes in the job market as well as in the industry to attract the top minds and talent for its human resource. The company effectively markets its HR compensation and benefits policy through branding and vocational advertising as well as word of mouth marketing of the perks and benefits provided at the company.

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Amongst the many benefits and perks provided Google allows its employees more vacation tike, free lunches, dinners and breakfasts as well as free massages and spa facilities along with innovation and technology based employee friendly office space which also features ample work and recreational spaces. Some of the perks and benefits that are provided by Google Inc to its customers pertain to unlimited sick leave days, around 27 days of paid leave one year into employment, medical and dental services, couriers centers, fitness centers like gyms, banking facilities as well as free food all three meals of the day. Additionally the female employees get 18 weeks of maternity leave while the fathers are allowed 7 weeks as maternity leave (‘Strategic HR Planning at Google Inc’, 2009).

Strategic Advantage of the Compensation and Benefit System at Google Inc

The Google Company seeks to attain the best talent pool from the market as its human resource. In order to attract and retain these employees the company strives hard to determine what their employees want and caters to their demands and requirements through an effective and innovative compensation and benefits system (‘Google tries to get inside their employees’ heads’, 2009). The company provides extensive perks and benefits that even allow the employees to work on their own independent projects and personal programs for 20 percent of the time at the Google offices (Heathfield).

The company is able to attract the best ‘geeky’ minds in the industry which was the original aim, while it also retains the current employees of the company by providing them with perks and benefits that are unrivaled by the competitors.


“Google tries to get inside their employees’ heads”, 2009. Web.

“Human Resource Management and Organizational Behavior”. Web.

Strategic HR Planning at Google Inc”, 2009.

Heathfield, S.M., “Top 10 Ways to Be Happy at Work”, About.

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Yoskovitz, B., “How To Use Perks and Rewards in Startups to Get The Best Talent”, Instigator Blog, 2008. Web.

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