The Google Effect In today’s corporate environment, the organization’s bottom line is to make the most profit long term by attracting top talent, retaining top talent, and motivating top talent for maximum performance. The way companies can do that is by offering the best rewards in the industry. The company that is highlighted the most for its most elaborate rewards is Google, Inc. Google, Inc. was ranked by Fortune magazine as the best place in the U.S. to work in 2009, and it has reached another zenith by becoming the most popular Web site. Google, Inc. is a very unique organization from its small beginnings as a start up company in the mid-nineties to its huge corporate presence today because of its founders. Google, Inc.’s corporate culture mirrors the company’s founders Larry Page and Sergey Brin, who did not want the traditional culture of corporations that came out of the “greed is good” mantra of the 1980s. They did not want to create a culture of workplace drama, backstabbing, neediness and general discord among employees. Page and Sergey wanted something special, and that is what they created: a Mecca called the Googleplex, where the best and the brightest could congregate like a college campus and brainstorm and collaborate on ideas that will change the world. They created an incubator where ideas grow up to be industry blockbusters. The founders believed that in order to attract the best talent, they had to provide an environment where people would want to come to work, have fun, dream big and get rewarded for hard work. Google, Inc. has achieved a top-5 ranking by providing innovative benefits, flexibility, and the opportunity to pursue ideas that challenge the status quo and shatter paradigms. Google, Inc.’s CEO, Erin Schmitt, adopts the “fun is good” principle and states that they built a company around the idea that work should be challenging, and the challenge should be fun. They put employees first by providing a unique environment to work around. Schmitt states, “We realize and celebrate that our employees have diverse needs, and that this diversity requires flexible and individually directed support. Our priority is to offer a customizable program that can be tailored to the specific needs of each individual, whether they enjoy ice climbing in Alaska, want to retire by age 40, or plan to adopt 3 children” (Google, 2009). Google, Inc.’s goal of providing benefits and rewards is to “strip away everything that gets in our employees’ way” (Google, 2009). Google, Inc. provides a standard package of fringe benefits, but on top of that are first-class dining facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning, commuting buses – just about anything a hardworking employee might want. Schmitt states, “Let’s face it: programmers want to program, they don’t want to do their laundry. So we make it easy for them to do both” (Google, 2009). Google believes in providing both intrinsic and extrinsic rewards. They understand that many humans are not motivated by pay incentives alone. Google Inc. believes in administering rewards and that good company culture is vital to company success, therefore, Google hired a Culture Czar. Google, Inc.’s CCO, Chief Culture Czar, Stacy Sullivan, is devoted to one thing—make Googlers happy. One way of maintaining Google, Inc.’s culture and keeping employees happy is administering the best perks and rewards (Culture, 2009). Along with its compensation and traditional extrinsic benefits such as free health and dental benefits, flex spending accounts, 401K plans, insurance, tuition reimbursement, and vacation packages, they also have very unique benefits. These unique benefits include maternity benefits up to 18 weeks off at approximately 100% pay. In addition, new mothers and fathers get Take-Out Benefits to help make things easier. They are provided with expenses up to $500 for take-out meals during the first three months that they are home with their new baby. Additionally, Google, Inc. provides back-up child care and in the Gift Matching Program, Google, Inc. matches contributions of up to $3000 per year from eligible employees to non-profit organizations. With Adoption Assistance, Google, Inc. assists their employees by offering financial assistance in the adoption of a child. Google, Inc. will reimburse employees up to $5000 to use towards legal expenses. Free lunch and dinner from gourmet chefs create a wide variety of healthy and delicious meals every day. Got the munchies? Google, Inc. also offers snacks to help satisfy you in between meals. At Google headquarters in Mountain View, California employees have the convenience of seeing a doctor on-site. Google, Inc. is pleased to provide its Mountain View employees with free shuttles to several San Francisco, East Bay and South Bay locations. At Google headquarters in Mountain View, there is on-site oil change, car wash, dry cleaning, massage therapy, gym, hair stylist, fitness classes and bike repair. Google, Inc. will reimburse an employee for buying a hybrid car, up to $5000. Google, Inc. provides other benefits, too many to list, but one can assume that their full-time culture czar is not finished inventing new ways to reward employees (Google, 2009). More than the extrinsic rewards, people who choose to come to Google, Inc. come for other reasons besides just the outward perks and rewards. They come for freedom. The key to success at Google, Inc., beyond the incredible perks and the compensation is simple: work process. These are the intrinsic rewards Google offers: no real hierarchy, tiny work groups, and purpose. Google, Inc. does not create monolithic groups or hierarchy. Their structure is flat to maximize creativity. There are no official channels, so ideas can flow within groups. Instead, they focus on multiple smaller workgroups that may have a project manager overseen by committees. They are very independent. The basic concept inspired by the founders is to maintain an entrepreneurial culture. Google, Inc. views small teams as individual start-ups. Google consists of many start-ups within a start-up. They implement what they know works and use the founder’s success as a template to promote an entrepreneur spirit that promotes innovation. One example is that if a Googler wants to work with another team, he or she can switch teams anytime they want without asking permission or having to go through any human resource channels. Another unusual perk is the allowance of time. Google, Inc. allows employees to spend twenty percent of their time to work on their own project, independent of their workgroup. Google, Inc. believes that no one should leave in order to pursue their personal passions. Letting employees do this results in over twenty percent of product launches stemming from these personal projects. With Google’s tiny work groups comes responsibility. Creativity is encouraged along with a large dose of independent time to initiate the creative process. The fact that the Googler feels the freedom to explore is one of the biggest perks that keeps them excited and on purpose in their work. Google, Inc. believes that they are attracting top talent because they empower employees to change the world. More than the intrinsic rewards and the cool lava lamps, employees believe they have the sense they are changing the world by organizing the world’s information, making people smarter, and teaching people to learn in a different way—they feel they have purpose. Why does Google, Inc. reward? Rewarding employees, according to Google, Inc., works very effectively. Google, Inc. had $209,624 in profit per employee in 2008, which beat all the other large tech companies, including big hitters like Microsoft, Apple, Intel and IBM. The company recorded revenues of 21,795.6 million during the financial year ended December 2008, an increase of 31.3% over 2007. In the financial year 2008, in the US, Google, Inc.’s largest geographical market, accounted for 48.8% of the total revenues. According to Google, Inc., the ability to reward employees by attracting the best and retaining the best pay off substantially—people are the best investment (Datamonitor, 2009). The Google Effect: Article Questions 1. What type of corporate culture were Larry Page and Sergey Brin trying to avoid for Google? - The 1980s' "greed is good" credo did not sit well with Larry Page and Sergey Brin, who preferred the modern corporate culture. They didn't want to encourage an atmosphere of workplace drama, scheming, neediness, and overall dissatisfaction among the workforce. 2. What is the Googleplex? - The Googleplex is a location where the most brilliant individuals can gather to cooperate and create ideas that will impact the world. 3. What is Google’s goal in terms of providing benefits and awards? - Google's goal is to attract and retain top talent by providing the best rewards and benefits in the industry. 4. List 5 examples of Google’s fringe benefits 1. First-class dining facilities. 2. On-site gyms and fitness classes. 3. Laundry rooms and dry cleaning services. 4. Massage rooms and haircuts. 5. Commuting buses for transportation convenience. 5. What are some of Google’s Unique Benefits? (List and describe 3) 1. Maternity Benefits: Google offers up to 18 weeks off for new mothers at approximately 100% pay. Additionally, new mothers and fathers receive Take-Out Benefits, which provide expenses up to $500 for take-out meals during the first three months after childbirth. 2. Gift Matching Program: Google matches contributions of up to $3000 per year from eligible employees to non-profit organizations, encouraging philanthropic involvement. 3. Adoption Assistance: Google provides financial assistance to employees who are adopting a child, reimbursing up to $5000 for legal expenses 6. How does Google provide intrinsic awards? - Google promotes a work environment that values independence, creativity, and purpose in order to create intrinsic rewards. They encourage small workgroups, independent initiatives, and an open framework so that staff members feel free and responsible for their work. Employees are encouraged to pursue their personal interests and spend 20% of their time working on their own projects, which promotes internal motivation and a sense of fulfilment. 7. How is the ‘entrepreneur spirit’ promoted at Google? - At Google, the 'entrepreneur spirit' is encouraged by an organizational layout that promotes creativity and invention. Small teams are treated as individual start-ups by Google, which also allows staff members to switch teams and work on independent projects without approval. This encourages an entrepreneurial atmosphere where workers can take chances, try new things, and come up with original ideas. 8. Which reward/benefit do you find the most appealing? - Personally, I find myself drawn to the unique perks and amenities provided by Google, such as the first-class dining facilities, on-site gyms, and access to services like massage therapy, haircuts, and carwashes. These show me that I'm not only being cared for at my place of work but they are showing appreciation to their employees through such perks.
