Discuss about the HRM Rewarding Management for Google Inc.
Reward strategy plays the most significant role in the organization as it is associated with providing benefits to the staff members so that they can efficiently carry out business operations in best possible manner. Further, reward strategy varies from one company other another and in turn it is necessary for every business to design reward strategy keeping in view actual expectations of its workforce (Hendry 2012). It has been found that through reward system company tries to convey some message to its employees like the value of its workforce or any other specific message. The present study carried out is based on Google Inc. Which is an American multinational technology firm that specializes in internet related products and services (Inc 2017). The company employs more than 57,100 employees and carries out operations worldwide. The present research focuses on analyzing the reward strategy of Google Inc in order to know its effectiveness.
The key reward choices
Different type of reward strategies has been undertaken by Google Inc where the main purpose behind the same is to retain its workforce and motivating them in best possible manner. Further, the company has adopted the mixture of both monetary and nonmonetary benefits that are provided to the employees. In the form of different reward, benefits are provided to the employees that involve healthcare such as medical insurance, HMO healthcare premiums are 100% paid for the staff, dental insurance, and vision insurance. In terms of holidays 10 paid holidays, sick days (Google 2004). Income protection plan involves short-term disability insurance, voluntary life insurance, group life insurance. Apart from this other form of general benefits are also delivered to the employees such as gym where Google reimburse $20 per month for any gym membership that its employees hold.
Maternity leave where 12 weeks off is given at 75% pay, employee referral program where Google awards $2000 bonus if referral accepts the offer of the company (Google 2004). Moreover, some other additional benefits are provided to the workforce such as tuition reimbursement where company reimburses college expense in case if any employee is pursuing higher course or degree. So, this provides the detailed description of the reward choices that are given by Google Inc to its valuable employees. It is directly representing that company provides full assistance to its workforce through which their motivation level is enhanced in best possible manner. Reward practices of Google Inc focus on different areas such as health and safety where proper insurance facilities are delivered to employees, education benefit in the form of tuition reimbursement. So, with the help of this, it can be clearly stated that the reward choice provided by the company are highly effective and this, in turn, provides the competitive edge to the business in every possible manner (Wei, Frankwick & Nguyen 2012). This is the main reason due to which Google is easily able to retain its employees for the longer period of time.
Message conveyed by the reward system of the selected organization
By designing different type of effective reward strategies, the main message that company communicates to its employee is linked to the value of workforce where Google highlights that its workforce is highly valuable for the company. Further, the organization believes in retaining the present talent instead of hiring the new employees and in turn they are the real asset of the business (Walker 2012). Another message that business conveys with this type of reward program is employee motivation where the company believes in motivating its workforce so that they can efficiently carry out operations of the firm in the proper manner.
All these messages positively influence the performance of Google Inc. in the market has acted as the development tool for the company. No doubt Google Inc carries out all its operations on the wider basis, and due to this reason, it is necessary for the business to design effective reward strategy so that it may enhance its future performance. The key business that company wants to communicate with this reward system is that no other company is able to design such type of reward practices in the industry (Ulrich 2013). Google is associated with the practices of innovation and in order to involve each and every employee in such type of innovative activities company has design reward system through which monetary benefits are delivered to its valuable workforce. So, this directly allows managing workforce in the appropriate manner and in turn acts as the development tool for the company in every possible manner.
Extent to which extent does the reward strategy in the organization drive individual performance
In the modern era, the overall productivity and performance of staff members are directly affected by the kind of reward system adopted by the organization. Thus, the management of companies is responsible for ensuring that a transparent, effective and satisfactory system of reward is encouraged within the enterprise (Snelgar, Renard & Venter 2013). In the context of Google, it can be asserted that positive reinforcement is one of the fundamental techniques which the organization is using to strengthen the performance of people working in the organization.
The reward strategy of Google emphasizes on offering both monetary and non-monetary rewards to employees against the performance delivered by them. The key benefit of this strategy is that it creates a sense of satisfaction among workers and at the same time, it encourages workers to give their best towards the success of Google. Nowadays, every employee seeks for the opportunity to become the integrated part of the organization (Mowday, Porter & Steers 2013). The reward system implemented by Google provides workers with the most potential platform to deliver satisfactory performance and become an integral part of the brand.
On the other side of this, the workers of Google are highly motivated and can deliver more effective performance because the organization is also taking care of their health and well being. The statement can be justified by the example of free meals and breakfast provided by Google. The company emphasizes more on offering organic and healthy food to employees. The strategy acts as a motivational force and results in enhancing the overall performance and productivity of all the staff members. In addition to this, Google also offers additional benefits and services to employees at regular intervals (Jiang et al. 2012). It includes facilities such as free health checkups, haircuts, free dry cleaning, swimming pool facilities, videos games, etc.
These services and facilities are the clear examples of the effectiveness of Google’s reward strategy. Furthermore, employees always look forward to delivering efficient and satisfactory performance with an objective to achieve different monetary and non-monetary rewards and facilities offered by the brand (Bratton & Gold 2012). On the other hand, it can be critically argued that there are specific issues with the existing reward system adapted by Google and the impact of this can be directly seen on the performance of the employee. The critical issue with Google’s reward system is that the management does not offer attractive monetary rewards and remuneration during the promotion of staff members (Hendry 2012).
Most of the time, it develops high degree of dissatisfaction among workers and restricts them to deliver effective and satisfactory performance towards the accomplishment of organization’s aim and objectives.
Ways to improve the reward system
Over the past few decades, Google has been emerged one of the best companies to work with, and its system of reward has contributed a lot in the same. However, it can be stated that there are specific issues in existing reward system and the company is required to take corrective measures to overcome these problems. It can be recommended that Google should offer attractive incentives and increase in pay even during the promotion of an employee (Cummings & Worley 2014). The benefit of this is that it will help in developing a high degree of satisfaction among workers and give best of their performance toward the success of Google.
It is also suggested that Google should emphasize on reducing the leniency provided to all staff members. The reason behind this is that at present the company is providing complete freedom and flexibility to all its workers without any differentiating between the senior and junior level of employees. Now, some of the employees have started making wrong use of the freedom offered to them as they are using various facilities provided by Google without delivering required and satisfactory efforts (Chen, Williamson & Zhou 2012). Such kind of situation can create obstacles in long-term growth and success of the selected business enterprise. The management is required to become a little bit strict regarding offering facilities, freedom, and flexibility to employees.
From the above-conducted study, it can be concluded that the reward system and employee performance have a direct relationship with each other. Furthermore, Google has been able to enhance the overall performance and productivity of employees by offering them satisfactory monetary and non-monetary rearwards. It can be also inferred that the selected business enterprise is operating with one of the best reward systems in the industry and it has supported in enhancing the overall degree of employee satisfaction and motivation. However, the company is required to take corrective measures to overcome some issues in its existing reward system.
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