Compensation and Benefits Structure of Google

Get Research paper Google assignment help on compensation and benefits. Submit an APA formatted research paper that addresses the compensation and benefits at this organization. You need to use at least four outside resources to support your analysis. This assignment should contain an introduction, body, and conclusion.


Assignment Help from

Within the body:

  • Describe the formal pay structure within the organization.
  • Describe any benchmarking activities undertaken by the organization. Include information as to whether the organization offers a competitive compensation structure. Describe incentives offered by the organization.
  • Describe any profit sharing, stock ownership programs that are available.
  • Describe both the legally mandated as well as the voluntary benefits offered by the organization.
  • Describe the cost of the benefits to the organization.
  • Describe how benefits are communicated to employees.
  • Describe any problems associated with compensation policies of the organization.
  • Describe the environmental factors that have influenced compensation and benefits of the organization.
  • Describe any current issues faced by the organization as they relate to compensation and benefits.

Compensation and benefits are the important part of human resource management of an organization that is mainly divided into four categories such as variable pay, benefits, equity-based compensation, and increase in salary (Moore, 2008). Google, Inc. is selected to discuss structure of compensation and benefits. In this report, there will be a discussion of current pay structure of Google and benchmark activities that attempted by the organization. In addition, compensation and incentive programs, as well as legal and voluntary benefits, will be also discussed and described that are offered by Google. In the last, problems with compensation policies, current issues with compensation and benefits, and several environmental factors that influenced compensation and benefits programs of the firm will be also described in this report.


Compensation and Benefits Structure of Google: Pay structure refers to a framework that helps to assess different jobs, grouping similar types of jobs together, and define formal pay structure for salary as well as compensation. Most of the organizations are developed formal pay structure within the organization to effectively manage functions related to payment of basic salary and compensation (Dorian, 2010). The current compensation and benefits structure of Google includes compensation committee and different tools to provide benefits that are stock based compensation, cash holiday bonus, salary hike, and equity incentive for executives. Along with this, the formal pay structure of the company includes different measures to rewards their employees in order to retain and motivate existing talented employees (Annual Report, 2010).


Benchmarking Activities for Compensation: In order to identify best among the many in terms of superior performance, human resource management of Google has undertaken or attempted various benchmarking activities within the organization (Moore, 2008). In this way, the annual review of employee’s performance has undertaken by compensation committee and compensation program manager to determine best performer. Along with this, Google has attempted to benchmarking activities by collecting and analyzing data related to performance of non-executive employees for making a comparison with benchmarking measures or standards (Annual Report, 2010).


Competitive Compensation Structure: Google offers a competitive compensation program to their executives and non-executives employees to provide rewards, compensation, and benefits. To provide compensation and benefits, Google has established compensation committee within the organization as part of human resource department that sets parameters for salary increase, bonuses and stock awards. Under this program, the company offers 10% hike in salary and $1000 cash holidays bonus during the Christmas seasons the incentives for those non-executive employees, who performs better (Annual Report, 2010). The hike in salary of all employees comes as a part of competitive compensation plan of the company to reward best performer. Along with this, Google offers stock based compensation and equity award programs under the compensation plan to attract new employees and retain existing talented employees (Google, 2012).


Profit Sharing and Stock Ownership Programs: At present, different stock sharing and stock ownership programs are used by Google’s management to compensate and reward their employees. In this way, Google uses employee stock option program to motivate their employees for performing better by rewarding. Due business interest, employee stock plan and equity compensation or incentives are also available at Google to attract best talent, to create incentive for executive on improving stock price or increase stock ownership, and to encourage growth of the business (Google, 2012). Google offers rewards executive officers, Executive Chairman of the Board of Directors, non-employee members of Board, and employees in the current compensation and incentive programs. Along with this business assignment help, competitive compensation plans are also available within the organization in which minimum 10% increase in salary and $1000 cash bonus for holiday offers by the management for those employees, who performs better (Dorian, 2010). On the other side, under the equity incentive plan, stock ownership offers by the management of the company to its employees for rewarding and compensating. So, employee stock option, cash holiday bonus, salary increase, and equity compensation are available at Google as the profit sharing programs.


Legal and Voluntary Benefits: In the current compensation and benefits structure, Google has offered both legally mandatory and voluntary benefits to its employees. Under the voluntary benefits, the company provides a vast range of innovative benefits, facilities, and services to its hard working employees. In this context, Google offered creative time program in which employees can spend 20% of its total working time on creative activities to get some relaxation from work (Jackson, Schuler & Werner, 2008). Along with this, Google provides a positive working environment to its employees though package of voluntary benefits that includes healthcare facilities, gym facilities, swimming pool facility, and indoor as well as outdoor games facilities. On the other hand, the company has also offered some legally mandatory benefits to its employees that are benefits for occupational illness or injury, insurance of employees, salary according to law, and annual paid leaves (Ferrell & Fraedrich, 2012).


Cost of Benefits and Communication Tool: The compensation and benefits plan has occurred additional cost for the organization in different forms. The cost of benefits is estimated as a reward’s fair value and calculated by using the Black-Scholes-Merton pricing model. The cost of the benefits is occurred as cost of stock based compensation, cost of cash bonuses, and cost of incentive or salary hike. In this way, the cost of stock based compensation has occurred as a percentage of revenue that is 5.1%, 4.9%, and 4.7% in the year 2008, 2009, and 2010 respectively (Annual Report, 2010). The cost of benefits in terms of stock based compensation has increased by $212 million from 2009 to 2010 for Google due to issuing additional rewards to existing and new employees. On the other hand, our Google case study assignment help experts write that, in order to communicate benefits to employees, Google has established a compensation committee and hired a compensation manager within the organization, who makes direct communication with employees through mails for taking feedback regarding current compensation policy (Google, 2012).


Problem with Compensation Policies: There is a problem identified related to measuring comparability of predominantly male and female occupations. This is a major problem with the compensation policies of Google. It is because the wages in Google are not equivalent with its total compensation (Girard, 2009). In addition, there is no agreement on capacity of current job evaluation methods that are used to evaluate the jobs. Some other problems are faced by Google due to compensation policies such as amount of comparable condensation cost for employers, reduction in employment opportunities for women etc.


Environmental Factors Influenced Compensation and Benefits: There are many environmental factors that influenced compensation and benefits of employees in the Google. Culture difference is an environmental factor that affected value of compensation and benefits program due to subconscious beliefs, attitudes and values (Mejia, Balkin & Cardy, 2009). In addition, economic factors also influenced compensation and benefit plan by affecting politics and power, a division of wealth and volatility of events such as rates of inflation, currency etc. Taxation policy also affected due to different structure for different nations. Some countries have more than 50% tax on income whereas some have no income tax that directly affected compensation and benefits in Google to its employees in different nations (Kurtz & Boone, 2008). At the same time, competitive labor market also affect the compensation and benefits in the Google because it requires types of talent sought and geographical scope of talent market etc to magnetize and sustain talent (Milkovich, Newman & Milkovich, 2007).


Current Issue related to Pay Structure: The current issue in Google is found out related to salary and benefits. In 2008, human resource of Google settled up a private Google group to determine the reasons behind quitting the organization by the employees. The reason behind this issue is found that employees are unhappy with the compensation and benefit structure of Google so they were given their resign (Burtnett, 2011). There were also found out an absence of fringe benefits that should be provided by Google to its employees. These employees gave their responses that they can earn more elsewhere because of low pay relative of Google. This issue was raised by the employees that are unsatisfied with the compensation and other benefits to work in the Google.


Conclusion: Form the above discussion by our assignment help experts, it can be concluded that the current compensation and benefits structure is helpful for Google to attract new talent and motivate their executives and non-executive employees. It is also concluded that there are some factors that influenced compensation and benefits programs of the company due to increase in cost and additional burden on business.   Now you can get business assignment help from experienced assignment writers of assignment help experts. You can assignment help services 24×7 when the students searching for online strategy business assignment help. We also ensure you that you will get 100% original best buy assignment help services. Students who need any topic academic assignment help can touch with our 24X7live support system or can send e-mail at