8/16/2016 GooglesHRM:Compensation,CareerDevelopmentPanmoreInstitute

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BUSINESS, MANAGEMENT

Googles HRM: Compensation, Career

Development
UPDATEDAUG 25, 2015 | JESSICA LOMBARDO

Googles human resource management

maintains a competitive compensation
strategy and a holistic career
development policy. Such compensation
strategy addresses the interests of high
quality employees. In relation, Googles
career development programs ensure
that employees are given considerable
opportunities for personal and
A Google Street View Camera Car. Googles human resource
management successfully uses competitive compensation and
professional growth in the company.
effective career development to attract and retain high Thus, the combination of the competitive
quality employees. (Photo: Public Domain) compensation strategy and holistic
career development programs supports
the successful development of Googles human resources. The companys performance
in these aspects of HRM points to high-quality and effective HR managers. This case of
Google serves as an example of how competitive compensation combined with holistic
career development boosts human resource performance.

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This article is part of a series on Googles human resource management:

1. Googles HRM: HR Planning, Job Analysis & Design

2. Googles HRM: Recruitment, Selection, Retention
3. Googles HRM: Training, Performance Management
4. Googles HRM: Compensation, Career Development

Career Development at Google

Individual-Organization Matching. Google matches individual and organizational needs
by lling positions based on a combination of performance appraisals and interviews.
These appraisals and interviews provide information for human resource managers to
ensure proper t between employees and the job, organization, and team. In this regard,
Googles human resource managements approaches for matching individual and
organizational needs address person-job t, person-organization t, and person-group
t. These different kinds of t support maximum human resource performance at the
job level, team level, and organizational level, respectively.

We know

Career Opportunities and Requirements Identi cation. In relation, Googles HR

management identi es career opportunities and requirements through a combination of

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job analysis and coaching. Job analysis enables HR managers to identify possible career
options for individual employees. Google uses coaching as a way of understanding the
dynamics involving the individual employee and possible career options within the
organization. This combination helps HR managers identify requirements for career
paths, and how these paths present opportunities for Googles employees.

Employee Potential Assessment. Googles human resource management assesses

employee potential through interviews, appraisals, and coaching. Appraisals provide an
objective evaluation of the employees potential. Interviews and coaching enable
Googles HR managers to determine the potential effectiveness of employees for
different kinds of jobs. Appraisals indicate how employees are doing in their current
jobs, while the interviews and coaching indicate the employees level of interest for
certain jobs and how they could ful ll other jobs at Google.

Instituting Career Development Initiatives. Some career development initiatives are

regularly instituted at Google, while others are applied as the need arises. Regular
implementation of career development initiatives are based on the companys career
development programs. Google conducts annual appraisals, which are also used as basis
for career development. During or after appraisals, the companys human resource
management informs employees of possible career opportunities. In addition, the
rminstitutes some career development initiatives as the need arises, such as when a
new business or product is developed. For example, the development of the Google
Fiber business creates new career opportunities, which are presented to the companys
employees.

Googles Compensation Strategy

Googles compensation strategy is highly competitive compared to the compensation
strategies of competing rms. The company provides high salaries, together with
comprehensive incentives and nonconventional bene ts. Financial and moral incentives
are provided. In addition, the company provides bene ts like medical insurance,
retirement pensions, free meals, and free use of exercise equipment. Realistically,
Googles human resource management has succeeded with regard to the compensation
strategy because it effectively attracts highly quali ed smart and excellent employees.
People perceive Google as one of the best places to work.

References

Balaji, V., & Balachandran, A. (2012). HRM practices in employee development,

employeeturnover, retention and effective compensation.International Journal of
Exclusive Management Research, 2(8), 1-7.
Bloom, N., & Van Reenen, J. (2011). Human resource management and
productivity.Handbook of labor economics,4, 1697-1767.
Geier, B. (2015). This is Googles secret to making work less awful. Fortune.
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Google Inc. (2014). Google Inc. Form 10-K, 2014.

Google Inc. (2015). People operations Google Careers.
Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM
research.Human Resource Management Review,24(1), 1-4.
Konyu-Fogel, G. (2014). Career Management and Human Resource Development of a
Global, Diverse Workforce.Impact of Diversity on Organization and Career
Development, 80.
Mims, C. (2015, March 29). At Google, the Science of Working Better.
Snell, S., Morris, S., & Bohlander, G. (2015).Managing human resources. Cengage
Learning.
Ulrich, D. (2013).Human resource champions: The next agenda for adding value and
delivering results. Harvard Business Press.
Yeo, R. K., & Li, J. (2011). Working out the quality of work life: A career development
perspective with insights for human resource management. Human resource
Management International Digest,19(3), 39-45.

TAGS:
CASE STUDY & CASE ANALYSIS,GOOGLE,GOOGLE HRM,HR MANAGEMENT,STRATEGY

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