1. We utilize security vendors that protect and ensure the integrity of our platform while keeping your private information safe. Google’s payment level to its employees is very high. The Internet giant generates billions of dollars from advertisers that buy or place advertising spots on varied online platforms through different agencies or ad networks. August 26, 2020. https://ivypanda.com/essays/googles-compensation-strategy-and-reputation/. Google was named the 2014 “Best Company to Work For” by the Great Place to Work Institute and Fortune Magazine. The main reason why Google reprised its stock option is that its product cycle phase was changing from growth to maintenance (Wolff, 2004). The company has altered its paying strategy to pay its employees better than its competitors. Revenues used in compensation will be added up to the expenses. Google's Compensation Strategy and Reputation. Also, the total costs will increase. Therefore, it can be said at this point that Google was making much from its strategy. The market share of google proves … Google’s compensation strategy is highly competitive compared to the compensation strategies of competing firms. Google’s payment level to its employees is very high. When it comes to motivating their employees, it can be said without question that Google stands out from the rest. Effective Executive Compensation: Creating a Total Rewards Strategy for Executives. Paying engineers well ensures that the quality of services at Google will go up. Google focuses on the overall compensation package, not just the base salary. Retention in the other hand refers is the ability to stem high staff attrition rates. "Google's Compensation Strategy and Reputation." Google’s pay level has increased by 10% (Kuratko, 2014). … Online advertising is at the core of Google. Wolff, F. (2004). Also, the increased expenses will deny the start-ups the chance to excel in the market. Although not much will be realized from stock options, in due time, it will be able to compensate itself through improved reputation and motivated engineers. I think Google has done a recommendable thing to change its compensation strategy. Approximately, the company will use $2 billion in stock-related compensation. Google had created a strategic compensation that gives them a competitive advantage among their competitors by attracting, retaining, and motivating highly talented employees. Google’s HRM: A Look at the Tech Giant’s Strategy, Policies and Practices. Revenue strategy of Google through online advertising. Innovations will be experienced in the company, which would increase the reputation of the organization. 3. "Google's Compensation Strategy and Reputation." Market Share. Furthermore, Google was counteracting comments such as the company was not the best place to work (Graham, 2008). (2020) 'Google's Compensation Strategy and Reputation'. Seeing Google publicly deal with their compensation like this smells like that same desperation. 26 August. August 26, 2020. https://ivypanda.com/essays/googles-compensation-strategy-and-reputation/. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. To provide compensation and benefits, Google has established compensation committee within the organization as part of human resource department that sets parameters for salary … (2020, August 26). "Google's Compensation Strategy and Reputation." Google’s Compensation Strategy. Google dominates the search engine market with a market share of over 60%. Need a custom Essay sample written from scratch by Google’s Compensation Strategy and Reputation, IMVU Company's Low Sales Issue and Solution, Misjustice in Solzhenitsyn's Work and Innocence Project, U.S. Expatriates’ Benefits, Compensation, and Possible Risks, Human Resources: Organizational advantages of performance pay and compensation, Policies that support SME business start-ups, UPS Store Franchise as a Model of a Startup, “When urgency matters on non-discretionary corporate social responsibility”, Flydubai Company Response to the Crash of Flight FZ98. Employee motivation encapsulates the activities, programs, and conditions created by an organization to induce high performance. Retrieved from https://ivypanda.com/essays/googles-compensation-strategy-and-reputation/. For full functionality of this site it is necessary to enable JavaScript. The third competitive advantage of Google is its market share. Before the reprising of the employee stock options, the employees were receiving $522. The database is updated daily, so anyone can easily find a relevant essay example. The compensation system used in Google is a key part of its employee motivation and retention strategy. These costs relate to the operating income of the enterprise in such a way that the respective operating income will go down. Mason: South- Western Cengage learning. The company provides high salaries, together with comprehensive incentives and nonconventional benefits. IvyPanda. Kuratko, D. (2014). Wiesbaden: Deutscher Universitätsverlag. Also, Google’s stock growth rate has slowed down. Entrepreneurship: Theory, Process, Practice. This is IvyPanda's free database of academic paper samples. This is apparent because the start-ups cannot afford to pay their engineers at such a salary. The increased costs will attract the most qualified engineers. Employee Stock Option Compensation: A Behavioral Finance Approach. However, the compensation strategy is very expensive since the company will use much of the revenues realized from stock trading (Graham, 2008). Also, the company was considering reprising its stock options since its stock price was slowing down. "Google's Compensation Strategy and Reputation." The firm wanted to change the reputation such that the perception has now changed to indicate that the company is the best place to work. Competitive Compensation Structure: Google offers a competitive compensation program to their executives and non-executives employees to provide rewards, compensation, and benefits. Google’s compensation system has all the benefits you would expect from a Fortune 500 organization such as health insurance programs and retirement plans. Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. IvyPanda. The company has altered its paying strategy to pay its employees better than its competitors. August 26, 2020. https://ivypanda.com/essays/googles-compensation-strategy-and-reputation/. Note that more than 90 percent of the total revenue of Google comes from online advertising. The same thing happens when you choose to freeze salaries across the board. On the heels of a ... Across the board compensation strategy retains mediocre employees and sets an organization up for failure.