Companies have developed various ways of attracting and retaining skilled workers. Competition in business is inevitable, and companies have to create multiple approaches to increase their sales. Employee satisfaction is one of the strategies that improve productivity in companies. The majority of workers regard this as an essential aspect of any work offer. Additionally, most businesses hire the best people to keep their loyalty and efficiency. Companies must have incentives and benefits packages to attract and retain the best workers. Compensation and benefits are the rewards that a company gives to its employees in return for their hard work. Benefits, discretionary pay, wage increases, and equity-based compensation are the four facets of Human Resource Management (HRM). Google is one of the largest technology companies in the world (Lombardo, 2017). The corporation’s human resource administration team manages a fair reward plan and a well-developed career development program. Therefore, one can evaluate Google’s current compensation and benefit system that the firm has implemented to guarantee that it remains competitive in the industry.
Google is a multinational company based in the United States, which sells and offers Internet-related products and services. Advertisement innovation, cloud computing, and the company’s hunt engine are all well-known. In 1998, Google started as a college project, and in 2014, it was ranked 46th on the Fortune 500 list and fifth on the list of best workplaces (Lombardo, 2017). Being a part of the Google team is a dream for many students and workers globally. The reputation of the company in influential employer lists can be attributed to its competitive pay policies. The organization is recognized for its groundbreaking technical breakthroughs and its innovative benefits practices. Google’s human resources department researched to assess the form of compensation, such as bonuses or base pay to motivate employees.
Furthermore, in contrast to its rivals, the compensation technique is not radical. Google has a competitive advantage over other firms due to its financial strength and willingness to try new payment approaches. For instance, the pay structure emphasizes complex data and interpretation. The business claims that its incentive package features should be determined to obtain the best results. According to the survey, employees preferred benefits over other considerations such as bonuses (Lombardo, 2017). Personnel argues that, unlike a bonus, a premium is contingent on the company’s annual results, making it difficult to guess. Reimbursement policies and effective HRM are critical components of a company’s success. Compared to its rivals’ payment systems, Google’s compensation scheme is highly competitive (Lombardo, 2017). The company is also dedicated to paying its employees as reasonably as possible. Thus, employees are attracted, retained, and motivated by the organization’s strategic rewards.
Google’s compensation scheme includes all of the standard benefits that any employee can expect, such as retirement plans and health insurance. The company distinguishes itself from its rivals by providing non-standard services and discretionary advantages. These helpful services allow employees to bring their pets to work and offer transport services that pick up and drop off employees at their homes using Wi-Fi-enabled trollies (Lombardo, 2017). The transportation department also provides nap pods to employees to relax and nap while at work. Since a friendly and comfortable atmosphere improves employee morale and efficiency, the company believes in it, and most of its implementations reflect this philosophy. Correspondingly, the organization is outcome-oriented rather than detail-oriented, enabling individuals to focus on various ways to improve their performance. Thus, these approaches in Google’s compensation and benefits system are significant to the firm since they motivate employees to work harder.
Furthermore, Google encourages socialization among its workers by providing flexible work hours, part-time work opportunities, and the option of telecommuting for some positions. It has also devised a plan to create a conducive working environment for all employees. Managers have revealed that the organization’s human resource and incentive systems yield motivating outcomes that increase employee productivity (Lombardo, 2017). Additionally, core compensation is essential and has a significant effect on employee performance and behavior. The corporation prioritizes gratifying exceptional performance and delivering advanced training to underperformers. Since they are performance-driven, the company conducts quarterly performance management and places a high value on it. Pay-for-performance rewards are one of Google’s key reward strategies that improve its performance (Lombardo, 2017). In other industries, total compensation increases as positions and levels of leadership rise. If the main target is reached by personal motives, group inspirations, and profit-sharing agendas, employees are compensated financially.
When compensation is not consistent with the administration’s strategic priorities, however, problems arise. Employees at Google are paid 11% more than the global average, and the numbers are 3% higher than those of their direct contestants in the industry (Groysberg et al., 2021). Google also uses stock options to retain its employees, which is essential in organizations. In this case, the tactic is used by startups that want to keep their best workers. The time it takes for Google employees to sell their stock has been cut in half recently. The corporation is aware of what workers are doing with their supplies. Since there are so many staffs, the chance to own a piece of the company is appealing. This strategy also fosters a sense of ownership among employees, aware that their stock will rise in value if they perform well. Google uses the worker stock option package to motivate its staff to accomplish better results. Moreover, the strategy is there to attract the best talent and encourage the business’s growth.
Google also maintains top talented workers by providing generous maternity and paternity leave to parents. Recent research by the company survey team indicates that women quit Google after having children (Lombardo, 2017). Before the new policies, the maximum period of maternity leave was twelve weeks. The company wanted to retain female employees by offering a five-month paid maternity leave as part of its compensation package. Google also provides health benefits to its employees, which include coverage for their children. According to Groysberg et al. (2021), the healthcare package is unusually comprehensive and allows transgender people to undergo gender-reassignment surgery, including facial feminization. A physician is also on board at the company’s Mountain View facilities.
Employees can also benefit from the distance because they would walk across the office to see a doctor when sick. Staff would no longer be required to miss work or drive long distances to hospitals if they became ill due to this scheme. In addition to regular medical appointments, physical therapy and chiropractic services are available. Employees have access to beauty salons and barbers at work, and they are free to visit them anytime they want. One-of-a-kind benefit plans show that a job’s base salary is not always the essential aspect. Apart from the health facilities, there are also free recreational rooms where workers play games like foosball and pool. These facilities promote a social atmosphere, and it improves the team concept while relieving stress.
Google has also ensured that it provides employer-sponsored retirement plans. The company can match up to 50% of employee contributions to their defined benefit plans (Groysberg et al., 2021). Employees receive letters from human resources urging them to set optimistic savings goals. When employees contribute $8,000 to their departure instead of $2,000, they can save more (Groysberg et al., 2021). This program ensures that members’ retirement benefit packages are carried out, giving them trust in their future retirement income. In addition to their regular life insurance, Google staff receives extra life protection coverage. When a Google employee dies, the departed employee’s partner is entitled to half of the deceased worker’s income for the next ten years (Groysberg et al., 2021). Thus, these practices are essential since they reveal that the company appreciates and values its workers.
In conclusion, wages and benefits are the compensation that an organization gives to its workers for their hard work. The human resources department at Google offers a fair benefit plan and an extensive career development program. The company’s commercial engineering, cloud computation, and search engine are well-known all over the globe. For the best outcomes, Google’s compensation plans are heavily focused on analysis. Furthermore, Google’s bonus package covers all of the standard employee benefits, such as retirement plans and health insurance. Since Google is a performance-driven company, they conduct quarterly performance reviews and emphasize it. The working atmosphere is pleasant, and workers can work with minimal challenges. The organization also provides extra life insurance to the staff’s relatives to benefit from the dead employee’s investments. Thus, Google’s compensation and benefits system has helped the company retain and attract workers since employee satisfaction is encouraged.
References
Groysberg, B., Abbott, S., Marino, M. R., & Aksoy, M. (2021). Compensation packages that drive performance. Harvard Business Review, 99(1), 102-111. Web.
Lombardo, J. (2017). Google’s HRM: Compensation, career development. Panmore Institute. Web.