Using the example of Google, evaluate whether the following HR practices/policies is strategic or not. Does this HR practice help the organization to achieve its goals and objectives?
In this paper, we are going to be looking at the impact of different policies and procedures on Google. This will be accomplished by studying the strategies that they are using to attract and retain employees. Once this takes place, is when we can show how these ideas have helped the firm to transform the company.
Over the last several years, the issue of employee compensation has been increasingly brought to the forefront. This is because globalization is having a dramatic impact upon firm, as they need specialized employees to deal with a host of challenges. Those firms that are able to dominate the industry are able to attract the best talent. This helps to give them a competitive advantage over other organizations. Once this takes place, is when the company is able to adjust with the transformations in the marketplace. (Storey 2009, pg. 249)
Evidence of this can be seen with observations from Storey (2009). He found that employers have become creative, by offering the same kind of monetary compensation as other firms. The differences are in the types of compensation that is provided. Those firms that are able to go above what the competition is offering will be able to attract and retain the best talent available. Over the course of time, this will ensure that the corporation is able to quickly adapt to with these changes and offer consumers the products they are demanding. This is when they can be able to maintain their position inside the marketplace and increase the profit margins (by understanding the needs of customers and responding to them). (Storey 2009, pg. 249)
In the case of Google, they are known for being one of the best employers to work for. This is because they have a compensation package that offers more than any other employer. To determine if these policies are effective requires examining the practices of the organization. Once this takes place, is when there will be specific insights that will show how this approach is helping the firm to achieve its objectives and goals.
The basic philosophy of Google is to address the needs of their customers. During this process, is when they will face increasing amounts of competition. This is because their industry is continually changing from shifts in customer tastes and advances in technology. The combination of these factors has created an environment where Google must continue to innovate and address the needs of consumers. This is how the firm is able to maintain their dominance inside the sector and increase their profit margins. (Jackson 2012, pp. 4 -- 8)
Evidence of this can be seen with the firm introducing the Android smart phone as competitor to I Phone. This is a change from the strategy that the company was using in the past by focusing on only Internet and search related items. These transformations into cell phones and eventually tablets, are illustrating how the firm is adapting with a host of challenges. (Letzing 2012)
To help Google to achieve the different goals, a host of policies were created that are designed to empower employees. This is because the technology sector requires that most individuals have specialized knowledge which can be used to help keep the firm competitive. To encourage everyone to discuss their ideas, a unique work environment was created to offer staff members something more than competitors. (Jackson 2012, pp. 4 -- 8)
At the heart of this approach, the company will: listen to, respect and implement employee ideas into the different products as well as services. A recent example of this occurred, when reports began to surface about how employees are working with engineers to develop the Android sun glasses. This is a device that will allow someone to wear pair of sunglass, which can provide them with same kind of functions as their phone. The only difference is that it is much smaller and looks like a pair of Oakley sunglasses with a microphone. This is illustrating how employees are playing a major part in helping the company to develop new products and services for customers. (Fincher 2012)
Google's Human Resource Practices and Policies
The success that Google is having means that they are offering their employee more. This is because they believe that the pay and total amounts of compensation will have an impact on employee motivation. As a result, the firm has been continuing to increase the average salary that they are paying to developers and engineers. (Bergen 2011)
Evidence of this can be seen with a recent study that was conducted by Geek.com. They found that Google has one of the highest pay scales inside the industry (with them paying 23% more). The below table is illustrating those firms that have the highest levels of pay and employee compensation. (Bergen 2011)
Top Technology Firms with the Highest Paying Industry Salaries (for engineers and developers with ten years' experience)
These figures are showing how Google is paying more in comparison with any of their largest rivals inside the technology sector.
However, what makes the company such a popular place to work for are the generous benefits that they offer (which go beyond the employee's traditional compensation). In this case, there many different benefits that are provided to staff members. The most notable include:
In house health care: This is when the firm will provide everyone with an in house physician for themselves and their families. These services are free and will cover all minor and major procedures.
Flexible scheduling: This is when the employee can determine when they will work and on what project. The only stipulation is that everyone has to meet predetermined objectives.
Travel and emergency assistance: Employees and their families will receive free travel and emergency insurance. In the event that they are traveling (to: include personal business), the individual can be able to receive coverage from this policy (for themselves and their family).
Free gourmet meals: Everyone is able to eat from a wide variety of gourmet meals that are prepared inside the company cafeteria.
Extra compensation for starting a family: If expected mothers' need additional amounts of maternity leave, the company will provide them with more financial compensation and time off.
Traditional 401k / life / health insurance: This is when the firm will include everyone in the employee retirement plan and they will provide them with life / health insurance coverage.
Tuition reimbursement: If any employee choses to go back to school, they can be receive assistance in covering the costs of tuition.
Discount legal aid: These are lawyers that have been hired by Google. They are offering employees with legal assistance at a discount.
Personal trainers / in house gym: The personal trainers and in house gym are available to all staff members for free. This is designed to help improve physical and mental health. While at the same time, it is reducing the time that employees will spend going back and forth to the gym. (Bergen 2011) (Benefits 2012)
These elements are showing how Google is focused on addressing the needs of employees. When these issues have been completely eliminated, is the point that everyone is willing to focus on being more creative. This will help Google to be able to use these ideas as a way to reach out to consumers (by giving the products and services they demand). Over the course of time, this allows the firm to maintain their competitive edge inside the sector. (Bergen 2011) (Benefits 2012)
Moreover, Google has become actively involved in corporate social responsibility. This giving something back to the community and address critical needs. It is also utilized as a way to reach out to various employees in an effort to increase enthusiasm. This is because the firm is focused on having everyone think and act differently. The way that this is accomplished is through addressing the employees' critical needs. (Philanthropy at Google 2012)
Once this has occurred, is when the firm will encourage everyone to have a sense of community and doing more to help. When someone is taking part in these activities, they will feel a greater sense of empowerment about: themselves, their jobs and the role inside the organization. Over the course of time, this is encouraging them to go the extra mile in achieving these higher objectives. This will take place by employees focused on: having their most basic issues dealt with and then giving them more reasons to do more. It is at this point that staff members will have a sense of empowerment (leading to greater amounts of productivity).
As a result, Google has been continuously named as one of the best employers to work for. This is because of their compensation…