Google’s Compensation Package
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Google’s Compensation PackageByBecky KennedyForInstructor: John CookCompensation and Benefit Systems 365September 27, 2015Google’s Compensation PackageCompensation is defined as, “Both the intrinsic and extrinsic rewards employees receive for performing their jobs.” (Martocchio 3) Intrinsic rewards are rewards that come from within the employee. Extrinsic rewards are those that include monetary as well as nonmonetary rewards. Both intrinsic and extrinsic compensation reflects an employee’s complete compensation package. This paper will examine the compensation package of one of the top companies and one of the best companies to work for in the United States. Google is a tech giant in the information technology industry. According to their CEO and founder, Larry Page, “Our goal is to make it as easy as possible for you to find the information you need and get the things you need to do done.” (Google Company) Google provides a variety of tools to guide users in areas ranging from the web, mobile, business, media, geography, social and home/office. Not only are they successful in providing significant tools for users, they also provide a great place for employees to work. Based on a review of several factors conducted by CareerBliss.com, Google earned a reputation of being the “Happiest Company in America”(Phelps 2014) and has been rated number one six times and a total of nine times on the list of Fortune’s 100 Best Companies to Work for. ( 100 Best Companies)They did not become the happiest company or the best company to work for in America for no reason. Here is a brief list of some of the factors and benefits that help contribute to their success as a great place to work:Pay some of the highest average salaries in their industry Provide a welcoming work environmentAllows employees to pursue special projectsGive all employees a voice regarding potential cultural changes and suggestionsRecognize today’s modern family (same sex couples)Provides many different benefits to employees (Phelps 2014)When employees feel like they are treated like more than just an employee, great things can happen. As the former CEO of Xerox states, “Employees who believe that management is concerned about them as a whole person, not just an employee, are more productive, more satisfied, more fulfilled.” (Employee Quotes)
All of the above mentioned results are the product of Google’s all around compensation package. According to Bob See, a recruiter for Google Engineering, Google does not negotiate compensation packages but will consider revision of the offer if new data such as a competing offers comes up. (Gillet 2015) Negotiations are rare at Google because the overall compensation packages they offer are usually much higher than the candidates’ current compensation. (Gillet 2015)  Google uses four steps when determining candidates’ offers:Current and competing offer information is gathered from candidatesA compensation analyst a standard offer package based on ranges of the role, level of the position and location. They include 3 components- base salary, bonuses, and restricted stock unitsIf the overall value of the standard offer is more than the candidate’s current and competing compensation, then the standard offer is approved.If the value of the standard offer is below the candidate’s current and competing compensation, a compensation analyst will work to provide a competitive offer. (Gillet 2015)In most cases, Google takes a market lead approach when offering a compensation package to potential candidates. This allows them to provide employees with market-competitive compensation packages.          Google’s core compensation consists of annual salaries, monthly salaries and hourly wages. Managers, analysts, designers and engineers are some of the highest compensated employees with an average annual salary ranging from about $100,000 to almost $300,000. (Glassdoor) Associates, contractors, and interns are paid an hourly wage with some interns receiving a monthly salary depending on the department they are working in. (Glassdoor) On an interesting note, in 2005  Larry