Innovations will be experienced in the company, which would increase the reputation of the organization. The company can pay itself from the revenues from the stock options (Wolff, 2004). (2020, August 26). The increase in stock price is making the company increase its pay level. The other benefit is that it will remain competitive in the market, especially for start-ups. Also, the increased expenses will deny the start-ups the chance to excel in the market. This is apparent because its product cycle phases have changed from growth to maintenance. These business strategies allow google to stay at the top amongst many other search engines (Smart advantage, 2010). 1. For full functionality of this site it is necessary to enable JavaScript. The third competitive advantage of Google is its market share. Google’s Compensation Strategy. Also, Google’s stock growth rate has slowed down. Google had created a strategic compensation that gives them a competitive advantage among their competitors by attracting, retaining, and motivating highly talented employees. 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. Also, Google’s stock growth rate has slowed down. 3. Market Share. This is because many revenues will be used for compensating employees. Note that more than 90 percent of the total revenue of Google comes from online advertising. Paying engineers well ensures that the quality of services at Google will go up. Online advertising is at the core of Google. IvyPanda, 26 Aug. 2020, ivypanda.com/essays/googles-compensation-strategy-and-reputation/. However, costs in most of the instances are used to attract revenues shortly. Google’s pay level has increased by 10% (Kuratko, 2014). This is apparent because the start-ups cannot afford to pay their engineers at such a salary. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Graham, D. (2008). Human capital and its management has become more important than ever in the 21st century. "Google's Compensation Strategy and Reputation." If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Unfortunately, your browser is too old to work on this site. Google focuses on the overall compensation package, not just the base salary. IvyPanda. 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. This is because these increased costs are likely to be a good investment (Graham, 2008). The compensation system used in Google is a key part of its employee motivation and retention strategy. Also, Google wanted to give its employees, a salary that valued their input. 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. Google’s HRM: A Look at the Tech Giant’s Strategy, Policies and Practices. This figure is $20000 more than it was paying a few months ago (Kuratko, 2014). New York: AMACOM/American Management Association. I think Google has done a recommendable thing to change its compensation strategy. Google dominates the search engine market with a market share of over 60%. Kuratko, D. (2014). Therefore, it can be said at this point that Google was making much from its strategy. Wiesbaden: Deutscher Universitätsverlag. 26 August. Paying computer science major such salaries is challenging for start-ups. Mason: South- Western Cengage learning. However, after the repricing, the employees started receiving approximately $850. August 26, 2020. https://ivypanda.com/essays/googles-compensation-strategy-and-reputation/. Seeing Google publicly deal with their compensation like this smells like that same desperation. We utilize security vendors that protect and ensure the integrity of our platform while keeping your private information safe. IvyPanda. The recent pay level is compared before the company repriced employee stock options (Wolff, 2004). This essay on Google’s Compensation Strategy and Reputation was written and submitted by your fellow student. Retrieved from https://ivypanda.com/essays/googles-compensation-strategy-and-reputation/. IvyPanda. "Google's Compensation Strategy and Reputation." This is apparent because its product cycle phases have changed from growth to maintenance. The company is paying computer science, majors, out of college $90,000 to $105,000. We will write a custom Essay on Google’s Compensation Strategy and Reputation specifically for you for only $16.05 $11/page. In the future, Google’s competitive position will be distinguishable such that it will be hard for a rival firm to remove Google from the market. Before the reprising of the employee stock options, the employees were receiving $522. Entrepreneurship: Theory, Process, Practice. … When it comes to motivating their employees, it can be said without question that Google stands out from the rest. However, the compensation strategy is very expensive since the company will use much of the revenues realized from stock trading (Graham, 2008). This is IvyPanda's free database of academic paper samples. Google’s compensation system has all the benefits you would expect from a Fortune 500 organization such as health insurance programs and retirement plans. Retention in the other hand refers is the ability to stem high staff attrition rates. Google's Compensation Strategy and Reputation. 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. 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. One of the benefits would be that there would be increased employee motivation. Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. Google’s pay level has increased by 10% (Kuratko, 2014). The company provides high salaries, together with comprehensive incentives and nonconventional benefits. You are free to use it for research and reference purposes in order to write your own paper; however, you must. Google’s pay level can be measured by how it is compensating computer science majors just from college (Graham, 2008). "Google's Compensation Strategy and Reputation." 2020. Google’s payment level to its employees is very high. Approximately, the company will use $2 billion in stock-related compensation. The main reason why Google reprised its stock option is that its product cycle phase was changing from growth to maintenance (Wolff, 2004). Google’s payment level to its employees is very high. Observably, the cost of the salary has increased to approximately $400 million. Also, the company was considering reprising its stock options since its stock price was slowing down. professional specifically for you? On the heels of a ... Across the board compensation strategy retains mediocre employees and sets an organization up for failure. The increased costs will attract the most qualified engineers. Wolff, F. (2004). Furthermore, Google was counteracting comments such as the company was not the best place to work (Graham, 2008). Employee motivation encapsulates the activities, programs, and conditions created by an organization to induce high performance. Effective Executive Compensation: Creating a Total Rewards Strategy for Executives. IvyPanda. To provide compensation and benefits, Google has established compensation committee within the organization as part of human resource department that sets parameters for salary …