Google Total Compensation Plan
Human Resource Management
Google total compensation plan
November 04, 2009
Introduction
Google is a monopoly, and it has a different and special structure. Employees are linked between themselves, and after in a moment they become autonomous. In this paper we are going to talk about the total Compensation plan, and we are going to explain its importance in this company. First of all we are going to indentify Google’s pay philosophy. We will explain the terms of lead, match and lag and how they are used in this company.
Then the most important part of our project is the direct financial compensation, the wages, the salaries, the incentives, and also the indirect financial compensation which is the mandatory and voluntary benefits. The non-financial compensation as the job environment aspects will be clearly presented.
The third party will be about the performance appraisal method that we have chosen to develop in for this company. In this party we will see that in a company like Google we cannot use only one performance method to distinguish differences between employees.
At last we will develop the factors that are used to evaluate employee performance. For example we have the skill, the knowledge, education or other factors. We have chosen these factors because they are really used in this company.
Company’s pay philosophy
First of all it is important to define what kind of philosophy Google uses to pay its employees. When you apply a lead philosophy, you pay more than your competitors because it “can attract higher quality employees and to retain existing staff” (Heneman, 2002, p.198) It means also that it reduces your turnover rate. A lag philosophy is in fact the opposite; you will pay less your employees because you want the “lower labor cost and more profits” (Heneman, 2002, p.199). In this case you have to provide additional services to attract employees and limit the turnover rate because all your competitors pay more.
Google total compensation plan
November 04, 2009
Introduction
Google is a monopoly, and it has a different and special structure. Employees are linked between themselves, and after in a moment they become autonomous. In this paper we are going to talk about the total Compensation plan, and we are going to explain its importance in this company. First of all we are going to indentify Google’s pay philosophy. We will explain the terms of lead, match and lag and how they are used in this company.
Then the most important part of our project is the direct financial compensation, the wages, the salaries, the incentives, and also the indirect financial compensation which is the mandatory and voluntary benefits. The non-financial compensation as the job environment aspects will be clearly presented.
The third party will be about the performance appraisal method that we have chosen to develop in for this company. In this party we will see that in a company like Google we cannot use only one performance method to distinguish differences between employees.
At last we will develop the factors that are used to evaluate employee performance. For example we have the skill, the knowledge, education or other factors. We have chosen these factors because they are really used in this company.
Company’s pay philosophy
First of all it is important to define what kind of philosophy Google uses to pay its employees. When you apply a lead philosophy, you pay more than your competitors because it “can attract higher quality employees and to retain existing staff” (Heneman, 2002, p.198) It means also that it reduces your turnover rate. A lag philosophy is in fact the opposite; you will pay less your employees because you want the “lower labor cost and more profits” (Heneman, 2002, p.199). In this case you have to provide additional services to attract employees and limit the turnover rate because all your competitors pay more.
References: http://www.jrsconsulting.net/freearticles_7.html , Jenny Schade, president JRS Consulting Inc. Human Resources’ Book, McGRaw Robert L. Heneman (2002). Strategic Reward Management, http://books.google.fr/books?id=P0dfB7x4AUMC&pg=PA198&lpg=PA198&dq=pay+philosophy,+lead,+match+lag&source=bl&ots=4H4mICXHRM&sig=3kMcZc38Ewfb2pE8tFZV-0BQu6o&hl=fr&ei=80TyStC3ENOUtgf65rW_Aw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CAgQ6AEwAA#v=onepage&q=pay%20philosophy%2C%20lead%2C%20match%20lag&f=false Great Place to Work® Institute, Inc (2007) Google Is #1 on this year 's list of the 100 Best Companies to Work For.. http://www.greatplacetowork.com/best/100best2007-google.php