Benefit and compensation system of Google Essay

Google Inc. is an Ameri sack multinational organization that provides internet related products and services. Cloud computing, advertising technologies, and their search railway locomotive be among the most popular services that they take outer. Google recently ranked forty-sixth on the 2014 Fortune five hundred companies and 1st on Fortune 500s best places to build for. Google was founded in 1998 by Larry Page and Sergey Brin who met at Stanford University and is based out of Mountain View, California. Google began in a garage xvi years ago and now has over 48,000 employees and is one of the worlds technology leaders. CNN Money has it ranked as number 1 on list of most popular employers by assembly line and engineering majors. College students ecumenic dream of starting their c atomic number 18ers at Google (cnn.com). A large part of the grounds that Google ranks so highly among lists of popular employers is due to their competitive compensation dodge.Google is cognize n ot only for their innovative technology breakthroughs but besides their innovative compensation policies. Google humankind Resources performed a survey to determine what type of chip in is preferred by its employees such(prenominal) as base pay or bonuses. Weve heard from your feedback on Googlegeist and other surveys that salary is more important to you than either other component of pay (i.e., bonus and equity). To address that, were miserable a portion of your bonus into your base salary, so now its income you can count on, e genuinely clipping you get your paycheck (ib clocks.com). Managing Human Resources and compensation strategies effectively is vital to organizations within the modern and fast paced business world. Google had created a strategic compensation that gives them a competitive emolument among their competitors by attracting, retaining, and motivating highly talented employees.Googles compensation system has exclusively the realises you would expect from a Fortune 500 organization such as health insurance programs and retirement plans. Google sets itself apart from the competition by pass services and discretionary benefits that atomic number 18 not standard. These services include perks such as employees are allowed to bring their pets to act andtransportation services that charge up and drop off employees at mansion. Google believes in a sportswoman informal environment because it leads to more engaged, happy, and productive personnel and they curb apply many practices that reflect this ideology. Liane Hornsey, the Google VP of operations, believes that the bailiwick life balance is important to their employees and implements policies to fix that workers keep a healthy balance.Liane explains that the company is outcome focused, not expatiate focused. In other words, they dont monitor what time employees bugger off or keep track of sick days ( digestforworklife.com) Google offers flexible work hours, part time work o ptions, and telecommuting for certain jobs to allow employees license to scram a social and home life. Google has set a schema to provide a workplace that people want to work at and have gave substantial effort to achieve this goal. Their HR and compensation practices allege impressive results of the organizations approach which increases employee productivity.Core compensation is very important and has a large impact on employees view and exertion. Google focuses on rewarding exceptional performance as puff up as training in weak areas for underperformers. Performance management is performed quarterly and Google puts capacious focus on this area because they are performance driven. Performance appraisals are important because Google uses pay-for-performance bonuses as a large part of their compensation strategy. lots like most other organizations there is an increase in aggregate compensation in accordance to the levels of responsibilities and leadership. Individual incent ives, group incentives, and loot share-out programs are used at Google which gives employees a financial reward when their profit goal is achieved. Payscale.com reports that Google Inc. typically pays their employees 11% preceding(prenominal) the market pay line. This is 3% higher than their direct competition in the market.Paid time off is one type of discretionary benefit that Google offers benefits above the standard in the market. They offer unlimited sick leave due to the fact that they are focused on performance and end product and rely on performance reviews to determine an employees offices. Google withal provides employees with 27 days of paid time off after one year ofemployment. They also recognize the richness of child birth and offer 18 weeks of maternity leave for an employee that has a child. Google also offers paternity leave to fathers which allow male employees to use up to 7 weeks of leave to spend with their newborn. During this time off employees receive t heir estimable annual base pay while they are at home with their child.Google offers employees health insurance programs that cover employee dependents as well. Its health cable care plan is unusually generous and even pays for gender-reassignment surgery including facial feminization for transgender women (forbes.com). Google also has a physician on site at headquarters in Mountain View, CA. This allows for employees to simply walk across the campus to see a atomic number 101 if they are not expression well. This eliminates employees having to miss work and make a special trip to a physician when they are not feeling well. Some physical therapy services and chiropractic services are offered as well for the convenience of the employee.Google also offers employer sponsored retirement programs such as 401K and IRA. Google matches employee donations to their defined contribution plans at a rate of up to 50%. This is well above the average as many organizations only match up to 6% o f contributions. Googles HR department sends emails to employees to encourage them to set aggressive nest egg goals. If you implore an employee to contribute $8,000 to his retirement rather than, say, $2,000, hell tend to sustain more, even if he cant afford $8,000 (rd.com). This allows employees to feel determine in their future retirement income as Google helps to ensure that they will have a satisfactory retirement benefit plan.Protection programs are another(prenominal) form of discretionary benefit that Google offers in innovative and unprecedented ways. In addition to standard life insurance that employees are able to receive, they also receive additional life insurance benefits from directly from Google. If an employee passes away Google has created a policy that the deceased employees spouse will receive one-half of their salary for the next ten years. If the deceased employee had a child therefore Google will compensate that child in the amount of $1000 per month until the age of 19 or the age of 23 if they are a full time college student.The type of benefit that Google is most known for are services. This type of discretionary benefit helps companies create a competitive advantage in the market by giving perks to employees which helps attract and retain smell employees. They offer transportation services in the bay area with Wi-Fi enable trollies that pick up employees to take to work and drop them off at their residence after work is completed. Another service they offer are nap pods for the ability to relax and take brief naps at work so they are reenergized for work. Google also provides tuition reimbursement services that encourage employees to expand their education at the expense of their employer. This will continue to improve employee production and continue to increase the value of the worker which benefits the employer and employee. There is also an on-the-spot(prenominal) fitness center that is complete with weights, personal train ers, and yoga instructors so that employees have the time to exercise and relieve stress while at work. The fitness center is also equipped with a full size lap pussycat and rock climbing wall for alternative exercise methods.There are also free recreational game rooms where employees can fly the coop games such as pool, foosball, Ping-Pong and arcade games. This promotes a social melodic phrase and strengthens the team concept while relieving stress and improving morale as well. Google has Segways that are getable for employees to use at any time which allows them to start around the campus atmosphere quicker and in a more entertain way. They also have beach volleyball games and roller hockey in the parking lot twice a week.Hair salons with beauticians and barbers are pronto available any time an employee would like a haircut at work. superstar of the most popular services that Google offers is a free cafeteria for all employees. useers are able to enjoy quality gourmet food for lunch at their convenience and it does not cost them anything. Google is also offers free oil changes, car washes, legal consultation among many more services that are available to any employee. These services are a unique compensation strategy that proves core compensation is not always the most important benefit to an occupation.Google has a unique vision and has implemented unique compensation strategies that have been met with overwhelming success of attracting and retaining the highest quality employees available in the market. Most employers can learnfrom the strategy used by Google by making the work environment as fun and friendly as possible because that is an environment that produces highly motivated employees that will want to perform to the best of their abilities. The asshole line is directly have-to doe withed by employee turnover and employee production and a compensation strategy such as Google Inc.s has proven to affect those areas in a positive way.Works Ci tedAverage Salary for Google, Inc. 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