Google Employee Benefits and Compensation System

Subject: Employee Management
Pages: 2
Words: 656
Reading time:
3 min
Study level: Bachelor

Google is one of the most innovative companies, which is also reflected in its human resource management policy. In particular, the company offers its employees various benefits and a fair compensation system. Google employees have access to both the traditional options in the form of insurance and paid leaves, but also many unique bonuses. Compensation is structured in such a way as to reflect the employees’ contribution to the development of the company and motivate them to do better work. Thus, the company was able to create a unique system that creates comfortable conditions for the professional activity of employees.

Google cares about the comfort of its employees by providing them with a significant number of benefits. First of all, the company provides employees with health insurance and other insurance options (“The Perks of Working for Google”). Health insurance covers the spouse and dependents of the employee and also includes the costs of the dentist and ophthalmologist. Insurance is available not only to full-time workers but also to contractors and temporary workers. Professional medical care is available for employees on Google campus. Google also pays employees paid-time-off (PTO), which includes sick leave, vacation, and holidays (“The Perks of Working for Google”). The size of the PTO depends on the position of the employee, working hours per week, and length of employment at the company. Additionally, employees are offered support during parental and bereavement leave. Maternal leave is designed for 18-22 weeks of paid leave, which is also available for fathers (“The Perks of Working for Google”). These measures are aimed at maintaining a work-life balance, which is also relevant in other programs of the company.

Google supports its employees in diversified development and continuous personal improvement. For example, employees are allowed to spend 20% of their working time on projects that are personally meaningful to them (“The Perks of Working for Google”). Additionally, financial support is offered to cover educational and learning expenses. In addition, Google constantly conducts various lectures and seminars, inviting the best speakers. The company also allows employees to take three months of unpaid leave for activities or hobbies not directly related to work. Google offers retirement options to employees, paying $ 0.5 for every dollar an employee saves for retirement (“The Perks of Working for Google”). The company also provides other benefits for the daily well-being of employees. These include free meals, sports options, free childcare centers, fixing appliances, haircuts, and more. Moreover, employees may bring their dogs to some of the company’s offices. Thus, Google uses every opportunity to maintain the work-life balance of employees.

In addition to the strategies described, the company also offers a comprehensive compensation structure. As in many companies, employee remuneration consists of fixed and bonus parts (De Riberolles). Bonuses come in many different types, including peer, performance, and collective. Peer bonus is $ 150 and can be transferred by an employee to any colleague, depending on his or her contribution to the development of the company (De Riberolles). Performance bonus depends on the position of the employee, his performance, and the multiplier rate (up to 15% of salary) (De Riberolles). Collective bonuses are offered to all employees periodically, depending on the development of the company. Thus, the total pay package consists of salaries, bonuses, and stock options. Stock options refer to Google Stock Units (GSUs), which each employee receives as compensation through company shares (Gallagher). Thus, Google’s pay structure is flexible and reflects the merit of each employee to the company in the monetary equivalent.

The system created by Google makes it possible to assess how well the company is developed not only in the technological but also in the managerial sense. The described system allows employees to work efficiently through fair compensation and maintaining a work-life balance. Additionally, this structure allows employees to feel the importance of their activities in the development of the company and track their progress through changes in the pay package.

Works Cited

De Riberolles, Hervé. “How Google Implemented an Innovative Incentive Compensation System?” Primeum, 2018. Web.

Gallagher, James. “Software Engineering Salaries at Google: A Guide.” Career Karma, 2021. Web.

“The Perks of Working for Google: A Look at Google’s Benefits Package.” Fiscal Tiger, 2020. Web.