Compensation Plan Outline

Compensation strategies and challenges

Google Inc. compensation strategy is highly competitive compared to a number of competing firms. The company offers highly competitive salaries with comprehensive incentives and nonconventional benefits. The company is keen on providing medical insurance, retirement pensions and free meals to its employees. Google’s compensation strategy is one of the best in the world. This is so because it has succeeded in attracting some of the most effectively smart and excellent employees. Nevertheless, the company’s gender equity has made it more conducive for women. There is no gender wage gap at Google. Men and women of the same level of expertise make the same regardless. Through this, the company has been able to ensure that women are viewed to be equally valuable as men when it comes to compensation.

Google has for a long time being considered as one of the best places to work. The company consistently ranks among the top in the Fortune magazine. The company took number one spot in 2008. The company has great perks but there has been criticism over some of their moves. The company is edged by companies that consider valuable stocks as a potential to attract employees. The company has to be missing on retaining some of their employees with some profitable stock jumps (Yanadori, & Marler, 2006). Furthermore, the company has been struggling with their retention bonuses. This has been equated to the trouble of paying these kinds of bonuses one a company starts. The problem with this is that they try as best to retain the high performing but they cannot promise of over the top stock pay-out options. Unlike Facebook that is valued due to its stock option compensation strategy, Google is struggling to maintain some of its top talents due to its strategy.

Google Inc. compensation practice to determine the positive or negative impact on the company and its stakeholders.

Google’s compensation strategy adheres to underlining laws, attitude and behaviors of its employees, external competitiveness, exempt and non-exempt jobs as well as internal employee consistencies. Through the legislative laws, the company has to be able to point out the negative impacts on its stakeholders. The strategies have pointed out that sticking to salary and compensation acts as contributing to losses to the stakeholders. The laws prohibit offering low pay to employees. However, the company has been able to categorize the employees as exempt and non-exempt for effectiveness in remuneration. This ensures that workers with exempt jobs earn huge salaries and bonuses due to their high skills. Exceptional skills are the top managers who require high pay such as their CEO.

The company’s compensation benefits observe the employees attitude and behaviors. The positive impact is that this ensures that employee morale is given first priority employees with better attitudes contribute to a positive image of the company’s compensation structure. They promise to the company's brand image due to their excellent work. External competitive is a crucial aspect for the company in terms of retaining top talent. The company sources employees from some of the top universities in the world. This allows an applicant to consider the options availed to them. From a competitive aspect, Google ensures that it beats some of its competitors with reasonable packages for its employees. This has positively contributed to the company’s innovative products through the creative minds they attract. Lastly, consistency is one way of building a great company culture. Employee consistencies allow the company to adapt to more relaxed standards for fun at work. This reinforced a positive company culture without putting emphasis on huge salaries (Eisenberger et al., 2016). Google offers a high degree of freedom to its employees not only for professional benefits but for personal development. This allows the company to also find the right employees for its culture.

Laws, labor unions, and market factors impacting Google Inc. compensation practices

Labor is crucial as the others in the corporate world. The rewards of labor in most cases are referred to as payments. According to Equal pay act of 1963, employers are forbidden from paying employees different wages based on their gender or sexes. In recent times we have seen the role of women change in the society we live in. Women play a prominent role in the economic growth of a nation. Over the years there have been disproportionalities when it comes to paying women and minorities (National Research Council, 1981). Google has tried to bring the wage gap between men and women. The impetus for equity made Google introduce the salary transparency when it comes to compensation. May of the publicists have addressed issues that employees in this bracket well paid at the company. Women and minorities are made to feel equals to their male counterparts. They are offered equal opportunities for growth, career development, and salary increment through well laid down compensation structures.

Equality, diversity and gender pay has to be an issue in the corporate world. Tech companies have spearheaded the move by ensuring an all-inclusive work environment. The company's compensation structure ensures there are no discontent complaints that could earn a discrimination lawsuit. The hiring process sets clear grounds on compensation structure looking at clear compensation guidelines and policies of the company. Also, pay is equal to all workers regardless of gender, age, race, and sexuality. The company's environment is tolerant of all kinds of people. The company observes the Wagner Act by allowing the employees right to organize. The law gives employees the right to strike and the employer's powers limited. Back in 2017, some of the employees were talking about unionizing with other employees from other Silicon Valley tech companies. This was to unionize the contracted employees in Silicon Valley i.e. Facebook, Google, etc.

Unbalanced professional opportunities for educated prospects creates blatant opportunities for those discriminated. Through the Employment Act, Google has been able to attract talents from all ages. Based on employer records, decisions on wages are based on all performance aspects of retaining top talent. Women and minorities just as men are viewed to produce high performers and attract better incomes.

The effectiveness of traditional bases for pay at Google Inc.

Google Inc. traditional basis for pay included the cost of living and labor market, base wage correlation with seniority and individual performance. The company pay level was a narrow band with regular annual increases. This was on 3-4% pay increase which is meant for promotions and merit. The base pay system allowed for employees to set their salaries on a schedule of merit increase and benefit package. Moreover, the traditional bases played a crucial place in setting aside contingent factors. These were the conditions for the human resource market, cost of living and level of economic dependence. Various internal factors came to play such as seniority, work performance, skills and the pressure from various labor laws. This helped Google set the pace in its wage and salaries surveys.

In traditional concept, a measure of one’s ability was determined by the usefulness of one’s college degree. This set center the aspects of age, life, and job experience as core factors in being a better employee. However, these are the traditional basis that Google is doing away with. Google considers on depth attributes in hiring its employees in recent years. A portion of those hired at Google does not have college degrees. According to Forbes, the ability to learn takes center stage in the hiring process. This is currently being instituted by Google. Old bases did not prioritize employees who are curious and willing to make mistakes and learn from them. They focused on an employee’s abilities. However, the dynamics of the technology industry require individuals who are able to come up with new solutions to everyday problems. They need employees who thrive and grow into the future.

Traditional aspects focused on base pay for attracting talent. This is slowly being replaced by motivation and employee’s happiness in their places of work. Employees want to feel safe and valued in their workplaces. The company has come up with a range of strategies that employees feel like part of them. The LGBT community compared to the passed are feeling inclusive in the company by all aspects of representation. They attend seminars and convention’s where they get to express their views on various matters at work. No financial compensation forms have grown over the years and become inclusive in a majority of the big companies. Feeling valued imparts general productivity of employees. Old bases didn't put emphasis on inclusivity of minorities and women in the workspaces to bolster productivity. Without a doubt, Google has reshaped the human resource division for the better. The company arguably earned the spot as a leader in human resource management.

References

Abraham, S. E., Karns, L. A., Shaw, K., & Mena, M. A. (2001). Managerial competencies and the managerial performance appraisal process. Journal of Management Development, 20(10), 842-852.

Eisenberger, R., Malone, G. P., & Presson, W. D. (2016). Optimizing perceived organizational support to enhance employee engagement. Society for Human Resource Management and Society for Industrial and Organizational Psychology, 2-22.

National Research Council. (1981). Women, work, and wages: Equal pay for jobs of equal value. National Academies Press.

Yanadori, Y., & Marler, J. H. (2006). Compensation strategy: does business strategy influence compensation in high‐technology firms? Strategic Management Journal, 27(6), 559-570.