Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. Although not much will be realized from stock options, in due time, it will be able to compensate itself through improved reputation and motivated engineers. The same thing happens when you choose to freeze salaries across the board. These business strategies allow google to stay at the top amongst many other search engines (Smart advantage, 2010). The third competitive advantage of Google is its market share. Wolff, F. (2004). Retention in the other hand refers is the ability to stem high staff attrition rates. We will write a custom Essay on Google’s Compensation Strategy and Reputation specifically for you for only $16.05 $11/page. Innovations will be experienced in the company, which would increase the reputation of the organization. Employee motivation encapsulates the activities, programs, and conditions created by an organization to induce high performance. Google’s pay level has increased by 10% (Kuratko, 2014). One of the benefits would be that there would be increased employee motivation. Revenue strategy of Google through online advertising. Human capital and its management has become more important than ever in the 21st century. This figure is $20000 more than it was paying a few months ago (Kuratko, 2014). Employee Stock Option Compensation: A Behavioral Finance Approach. Market Share. I think Google has done a recommendable thing to change its compensation strategy. The company is paying computer science, majors, out of college $90,000 to $105,000. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Google had created a strategic compensation that gives them a competitive advantage among their competitors by attracting, retaining, and motivating highly talented employees. Effective Executive Compensation: Creating a Total Rewards Strategy for Executives. Note that more than 90 percent of the total revenue of Google comes from online advertising. The other benefit is that it will remain competitive in the market, especially for start-ups. This is apparent because its product cycle phases have changed from growth to maintenance. Wiesbaden: Deutscher Universitätsverlag. Google's Compensation Strategy and Reputation. However, costs in most of the instances are used to attract revenues shortly. These costs relate to the operating income of the enterprise in such a way that the respective operating income will go down. The organization topped the list for the fifth time. 26 August. Paying computer science major such salaries is challenging for start-ups. The main reason why Google reprised its stock option is that its product cycle phase was changing from growth to maintenance (Wolff, 2004). IvyPanda. Graham, D. (2008). Online advertising is at the core of Google. Google was named the 2014 “Best Company to Work For” by the Great Place to Work Institute and Fortune Magazine. Also, Google wanted to give its employees, a salary that valued their input. Also, Google’s stock growth rate has slowed down. Google’s compensation strategy is highly competitive compared to the compensation strategies of competing firms. On the heels of a ... Across the board compensation strategy retains mediocre employees and sets an organization up for failure. Seeing Google publicly deal with their compensation like this smells like that same desperation. Google’s Compensation Strategy. "Google's Compensation Strategy and Reputation." You are free to use it for research and reference purposes in order to write your own paper; however, you must. The company has altered its paying strategy to pay its employees better than its competitors. "Google's Compensation Strategy and Reputation." (2020) 'Google's Compensation Strategy and Reputation'. Google’s compensation system has all the benefits you would expect from a Fortune 500 organization such as health insurance programs and retirement plans.