Google is a technology company that is found in the internet, computer hardware, and computer software industry. This is a very dynamic industry that experiences constant change of technology and products. The industry focuses on employing highly skilled personnel that are highly creative and innovative. Each company in the industry therefore adopts a competitive compensation system to be able to preserve highly skilled and experienced workers and to attract more great talents. Thus, the compensation is normally above average to reduce the turnover. In addition, the industry records a high rate of outsourcing, especially when the cost of outsourcing is far below the cost of employing personnel on the permanent bases. This paper evaluates the compensation system in the internet, computer hardware and computer software industry.
Current trends Shaping Total Rewards for Employees in the Industry
The internet, computer hardware and computer software industry is a skill based industry that requires individuals with fine programming, hardware and software engineering, and network setting and configuration as well as the security skills. In this regard, employers in the industry face create competition with each employer fighting to get and to maintain the best talents in the market. This competition is what is shaping total rewards system in the industry. Each company tries to offer the best employees reward system with all possible components that are characterized by attractive incentives to boost morale, commitment and dedication to their works (Sec.gov, 2012). Each company also tries to go an extra mile in rewarding its workers to ensure that they are always determine to invest in new ideas and creativity to outshine their competitors in the market. This compensation has enhanced the compensation programs in the industry, with employees being among the best treated in the world. The industry promotes employee development to ensure that they keep up with the dynamic knowledge and technology needed in the industry. Each company struggles to be the leader of change and not the follower. This makes the companies in the industry to fight to maintain and attract the best talents that will help them keep up with the pace of change and innovation.
Evaluation of the Current Compensation Plans in the Industry
The current compensation plan for the industry include the monthly salary payment whose amount depends on various factors that include the job category, the working position in the career or professional ladder, and the time of entry or the years of experience. This amount must be beyond the government minimum value and above the market value to reduce turnovers and to attract talents. However, the actual amount varies from one company to another based on the company’s general financial health and its payment policies.
The compensation plan also includes various benefits given to the employees. These include compulsory benefits that are dictated by the government the health benefits, and the retirement benefits. Although some companies gives these benefits as guided by the government, most of them tend to provide other similar programs that offer higher benefits to the workers. Some companies such as Google Inc. contain compensation committee which provides different incentives to workers based on individual performance (Sec.gov, 2012).The company also has a bonus program where workers nominate their fellow workers for award with a valid reason. Workers are also compensated by use of the company’s stock, salary hike, cash holiday bonus, and equity incentives especially for executives.
Diverse Levels of Responsibility and Compensation
The industry contains various levels of responsibilities and compensation. These include those working at executive level, those in management level, heads of the departments, and other workers. The departments can vary based on the company and the level of workers also varies based on the department. The executives are responsible of managing the company operations, making decisions, and solving problems. Their compensation include given the monthly salary, sitting allowance, and other benefits including health benefits, and retirement benefits. Other bonuses are given to the executive individuals based on the general annual, quarterly or semi-annual performance. Some of these benefits include bonus, holidays, or salary hikes (Gillett, 2015). The heads of department are responsible of controlling and monitoring operations in a department. Their compensation include the monthly salary and other related benefits, compulsory benefits including the medical and retirement, salary hike, work recognition bonus including equity, and enjoyment of other facilities placed to better work environment.
Other workers responsibilities depend on their department. However their duties involves the technical work such as designing, programming, repairing, troubleshooting, configuration, monitoring, marketing, and offering services to customers among other things. Their compensation include the monthly salary as per individual position or work, compulsory benefits, maternal and paternal leave, paid holidays, bonuses in cash or stock, yearly leaves packages, and performance bonuses. The companies also hire on contract or they do outsource now and then. In this case, the contractor is paid as per the agreement. This is the only payment made in this category of workers. The above is summarized as follows:
||Control of the organization operations, decision making, solving problems, and overseeing all organization activities. Others include sitting in the decision making committee
||Basic salary, compulsory benefits; medical and retirement benefits, performance benefits that include stock bonus, holidays, paid leaves, and committee sitting allowance.
||Managing business operations in a department
||Basic salary, compulsory benefits; medical and retirement benefits, performance benefits that include stock bonus, holidays, paid leaves,
||Technical operations in their working level
||Basic salary, compulsory benefits; medical and retirement benefits, paid paternal or maternal leave, performance benefits that include stock bonus, holidays, paid leaves.
Evaluation of Market Data, Job Data, and Organizational Data
The government has set the minimum pay for different work groups in the country. However, the market price of workers in the industry is slightly above the government limitation due to high need of skills and talents in the industry. Nevertheless, Google has a high regard for its workers,and in this regard, its pays its works salary that is higher above the market value. The company also provides other benefits to attract more talented customers in the industry and to maintain those that it has already natured. This applies to all workers irrespective of their workgroup.
Component of Composition
The reward system should comprise of all forms of compensations provided to motivate workers. This includes higher salaries above the government and market limit. Others include medical and retirement benefits which may be as per the government instructions. Medical benefits should cover all dependents. Others include yearly paid leave of not less than one month, paid maternity leaves of not less than three months, and paternal leave of not less than two weeks. The companies should also give study leaves which either is paid or unpaid as per the company’s preference. Others include incentives and bonuses for good performance. This will vary based on the area of performance or the challenge.
Analysis of Legislations Impacting Decisions Made Regarding Compensation and Benefits
The government gives a number of restrictions regarding workers compensation. This includes the minimum monthly or yearly salary to be paid to employees. This value is fixed as per individual worker qualification. The government has defined job groups which define the minimum amount of money that must be paid in each job group. Others include main benefits that include medical and retirement 401k plan benefits where the employer should contribute a certain amount of money to the account of each worker (Dol.gov, 2017). Other governmental regulations include working hours per day, overtime compensation, leaves both medical and annual work leaves.
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