Google 's Strategic Plan And Initiatives

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It is no wonder that Google is considered one of the best company’s in the world to work for. With its generous pay and compensations plan it has the ability to attract the best of the best employees. Googles well-designed compensation philosophy supports the organization’s strategic plan and initiatives, business goals, competitive outlook, operating objectives, and compensation and total reward strategies. Throughout its history google has continued to access their pay model and adjust it to ensure it is internally aligned, competitive, takes in to consideration employee contributions and has their management actively involved. Google is not only faced with the challenge of attracting, retaining and motivating the very best talent,…show more content…
No employee earned a base salary of over 100k and with merit increases available only through advancement. After the IPO (2004-2009), “Google knew that if they wanted to attract the best talent, and draw talent from competitors, the stock that was in the picture needed to be attractive” (French, 2012). However with the fluctuations in the stock market during this time, Google needed to come up with another innovative program to make them look attractive, so Google responded to this challenge with a policy that enabled them to adjust the stock options for those at either side of the performance spectrum. Since 2009 Googles pay and compensation challenge has been continuing to grow while maintain employee satisfaction with equity programs. Google wanted equity programs to have a high perceived internal value, but knew the current stock option plan would not be appropriate for their workforce. They needed some creative and innovative ways to reward their employees through their equity program. After finding out what the workforce wanted through engagement surveys and focus groups google compensation team had to come up with some innovative solutions. One of the things the Google compensation team found out was that Googlers heavily discounted the underwater options, which is important when 80% of the options
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