GOOGLE’S HRM: A LOOK AT THE TECH GIANT’S STRATEGY,

POLICIES AND PRACTICES.

Human capital and its management has become more important than ever in the 21st
century. However, very few are as good as Google at this art. Google has proved that it relies
upon innovation in every aspect of its business, even HRM. It has established an employee
centered culture at whose core is employee empowerment.  The HR function is a strategic
partner at Google and it has focused on benefiting the company’s core operations by hiring
and retaining only the best. Apart from Google’s technological capabilities, innovative and
efficient HR is the reason that it has acquired so much success and fame. It differs from most
others in terms of its focus on employees. When it comes to making its employees happy,
Google believes in nothing less than the best.  It favours ability over experience and hires
only the smartest people. Several things are different about Google’s HR approach. Most
outstanding thing about the tech giant is its mix of salaries and perks that are meant to keep
its employees more than motivated. Moreover, nothing is sufficient in today’s world. You
have to do things that take you much higher above the mark to beat the competition and get
noticed even in the field of HR.

Google caters to a global audience and its diverse workforce reflects the diversity of its global
customer audience.  In more than 40 countries around the world, it has opened more than
70 offices. Google is headquartered at Mountain View California.  The search engine giant
provides a variety of internet and cloud based services meant for individual, professional and
business use. Google has reached the position of the best with the help of a highly talented
and motivated workforce that it has managed with great care.

However, with time it has grown famous for its employee friendly environment and policies
just as much as for its search engine and other IT products.  Being ranked continuously as
the best employer requires intense focus on HR management. However, Googlers themselves
tell the stories of how great it feels inside those offices.  Google has not achieved these things
by managing an airtight environment like several other tech giants. Instead, every individual
employee is given enough space to use his talent and perform at his best. In this regard, you
can say, it has managed to maintain higher transparency than others. The focus is also on the
use of technology to drive performance.  The focal point of its HR strategy is maximum care
and assistance so that its employees can work with dedication.  The perks Google provides its
employees are awesome that entire industry quotes with awe.  Apart from job security, the
high risk reward ratio at Google guarantees job satisfaction. A well designed training and
performance management system ensures everyone receives appropriate guidance and
support.

Innovative and employee friendly work culture:

The secret of Google’s success is its innovative work culture. This culture drives
commitment. Some key facts about its culture are as follows:

 Committed employees driven by a passion for innovation.

 Efficient leadership that empowers and strives to create an environment of trust.
 Recognition and incentive system that encourages performance and innovation.
 Learning environment that ensures continuous learning and growth.
 Top leadership committed to technological innovation
 Inclusive policies that encourage diversity

Google’s success is because of its culture and work environment and its HR has played a
major role in sustaining these things. Google’s organizational structure supports a system
made to pursue innovation. Google’s HR nurtures its creative and innovative company
culture  by formulating policies that hire and retain the best talent. If Google has stood at the
top as the best employer for years continuously, the reason is that its focus on HR
management is exceptional.

Recruitment and Staffing at Google:

Human resource policies begin from great hirings. Every year more than 2 million applicants
apply to secure a job at Google. Each vacancy gets thousands of applications in response. The
main focus of Google’s recruitment policy is to have the right person in the right position.  It
does not officially reveal its number of recruiters but sources say that more than 400 internal
and external recruiters were working for hiring new Googlers in 2009. These recruiters are
well paid professionals, many of which are brought from outside especially to recruit new
candidates.  In 2012, the number of new recruits Google hired was more than 8000.
Recruiters focus on hiring staff that is highly talented and culturally compatible. Culture
plays an important role when it comes to hiring new people. How culturally compatible you
are with Google decides how well you will perform once you are inside. The role of culture
and cultural compatibility has also been highlighted by research and more culturally
compatible employees mean higher overall productivity of an organization.  

However, the recruitment process is not so straightforward. Instead, the applicants have to
be through a lengthy and complicated process. The budget for recruitment at Google is also
high.  Productivity matters at Google and so there is a lot of investment in hiring every new
staff.  It tests everything before it lets somebody in. To some, it may appear too complicated
but then things are complicated inside any technology company and it is also why their
turnover rates are higher. Surviving the pressure is not possible for everyone and in this
sense Google is not wasting money by spending it on recruitment. The way Google does it
has become a lesson for the others in the industry.

Recruitment is not only the HR function’s job, but the entire organization is involved. 
Another key focus of Google’s recruitment strategy is diversity. It has partnered several
organizations to make its selection process a success and to bring a highly diverse workforce
together. Diversity is not just an HR concern, instead something visible in all aspects of
Google’s business.    Google itself notes, “There’s no one kind of Googler, so we’re always
looking for people who can bring new perspectives and life experiences to our teams. If
you’re looking for a place that values your curiosity, passion, and desire to learn, if you’re
seeking colleagues who are big thinkers eager to take on fresh challenges as a team, then
you’re a future Googler”. Google has erected an efficient recruitment system made of
efficient people that fill distinct roles. The recruitment team has members in roles like
recruiting research analysts, candidate developers, process coordinators, candidate screeners
and several others. Handling such a high number of applications as Google receives each
year is not an easy task and requires a lot of planning and coordination.

Performance management at Google:

Google’s HR function has to handle a major responsibility and therefore its size is also larger
than average. Throughout the various stages from hiring to performance management,
Google cares for equity and believes in providing each Googler with equal chances of growth
and development. The rewards for good performance are quite big and there is a downside to
being an under-performer. Its payment strategy is based on the pay for performance scheme.
360 degree feedback is used for performance review and reviewers can be selected from all
across the organization. It is not just your seniors but your subordinates too can be a part of
your review team. So that people can perform at their best, Google’s leaders have taken care
of a few important things

 A person is assigned to a task he is interested in.

 Everyone can learn continuously.
 Challenges are there for everyone.
 Everyone feels being recognized for his contribution.

Innovation is the norm at Google, followed in every aspect of business including

performance management.

Training and development at Google:

If millions are chasing the dream of working for Google, the reason is that working there can
be the most rewarding experience of life. Its HR policies target employee satisfaction and
empowerment. Employee loyalty is very difficult to obtain in today’s era. It holds true
especially in the case of tech companies. If Google is investing more than average, then it is
to retain its precious talent.  The task would become difficult unless Google is ready to invest
in each employee sitting inside its offices. So, apart from hiring great talent, the focus is on
talent management.

Google has created a work environment that fosters continuous learning. Employees get
opportunities to continuously learn and grow. Google has special training programs related
to presentation skills, content development, management and leadership. Free classes in
foreign language and culture are also provided to Google employees. The group of engineers
at Google is paid special attention for its important role. They are provided orientation and
training plus mentoring by a special group called engEDU. These programs have been
designed by the engineers for the engineers.

Learning and development receive special attention at Google whose learning and
development team has continued to expand. This team works on leadership programs for
developing future leaders for Google. 120 hours of training and development every year is
mandatory for all Google employees. This is treble the industry average. All that focus on
employees is what makes Google a creative employer. However, the story does not end here.
There are special reimbursement plans for the Google employees if they want to pursue
further education. The Stanford MS program is designed to cater to the needs of engineers
needing technical expertise in a specific area. The full cost of this program is born by Google.
Its global education leave program allows upto 5 years of leave and reimbursement of up to
$150,000 for employees who want to take their education further.

Benefits and perks:

The list of perks provided to the Googlers is quite tall to inspire jealousy in others. These
perks are a critical part of Google’s HR strategy and designed in a manner to inspire
motivation, collaboration and innovation.

Here is a short list:

 Flexible works hours

 Casual dressing
 Onsite medical care
  Pets allowed
 Health benefits applicable soon after joining
 Free gourmet meals, drinks and snacks
 Onsite gym
 Expert help with financial management so Googlers can remain worry free.
 Generous parental leaves
 Retirements saving plans
 Death benefits and the list continues………………

So, for someone working at Google, his job can be a highly rewarding experience. These
benefits are designed to manage a very high level of motivation and dedication.  Its
compensation packages are fatter than the industry average and they also include stock
plans.

Innovative and employee friendly HR policies:

Google has created an environment that is focused on inclusion. It makes sure that its
employees’ suggestions are valued. New products are first released internally and employee
suggestions are invited as a part of product development process. The staff provides its
feedback on the usability and other features of a product before its final release. The 20%
project at Google allows the employees to devote 20% of their time to projects outside their
general responsibility. Google has managed a smart HR policy aimed to retain its talent pool.
Fairness and equity are evident in every aspect of its HRM. However, there are challenges
before it in terms of recruitment and staffing. It is continuously innovating in this area to
better its recruitment strategy and increase the effectiveness of its retention plans.  Its
organizational culture has received most critical acclaim. Designed to inspire innovation and
loyalty, Google’s culture drives performance. It also inspires a personal feeling of belonging
and remaining invested.

Conclusion:

The secret of Google’s success is its innovative work culture. Its culture drives innovation and
performance which is exemplary and a source of inspiration for others. At the centre of its
smart culture and structure is the strategic role of the HR. Google’s highly innovative HR
machinery ensures that the culture it has created can be sustained.  The success and
reputation Google has earned in a short period, is not based on just its technological
capabilities but on HR innovation too. It is a successful company that knows how to value its
human capital. Its facilities and perks are matchless. However, if the turnover rate is still
high then might be there are bigger challenges before Google. First of all, Gen Y’s loyalty is
difficult to obtain. The entire world is not enough for this generation. Google might still have
to innovate further to match this generation’s expectations fully. Apart from it, several more
things are complicated inside the tech companies including the work itself. Still, if Google is
the best employer, then the reasons are more than evident.

What to take away?

While most companies may not have the same resources available to them as Google,
there are still many lessons that can be learned from their innovative HR process.
Perhaps the most important piece of advice would be to look after your people.
Happier employees are more likely to go above and beyond, and do the very best for
their employer once they feel valued and appreciated.
Additionally, it’s time to stop the mindset that Google is not a competitor for talent
outside of the IT sector – as this is simply not true. Like the New York Yankees in
baseball or Barcelona in football, Google is a talent magnet across the board. Google
attracts and retains the top talent in all areas from IT to marketing, sales, sustainable
development, engineering and more. It is this ability to hire and retain the best talent
that accounts for Google’s continued success and dominance on the world stage.

Google’s Recruitment Practices

Sources. Google’s human resource management uses a mixture of internal and

external recruitment sources to maintain the adequacy of its human resources. The
company uses promotions, transfers, and trainees/interns as the main internal
recruitment sources for HR needs. On the other hand, the external recruitment
sources at Google include educational institutions and respondents to job
advertisements. Most of these ads are available through the Careers section of
Google’s website. Through these recruitment sources, the company facilitates a
continuous influx of qualified workers, while matching these employees’ capabilities
with human resource needs.

Methods. Considering the combination of internal and external recruitment

sources, Google uses indirect methods and direct methods of recruitment. The
indirect methods are more significant to the company. These indirect methods
include advertisements on the company’s website. However, Google’s human
resource management also uses direct methods in the form of contacts with potential
interns and future employees through academic institutions. This combination of
direct and indirect recruitment methods is aligned with the mixture of internal and
external recruitment sources to satisfy Google’s human resource requirements.

Selection Process at Google

The most significant criteria used in Google’s human resource management for the
selection of applicants are smartness, creativity, drive for excellence, and alignment
with the organization. The company does not use work experience as a major
criterion for selection. These criteria are based on the firm’s goal of maximizing
innovation to support its broad differentiation strategy.

There are different processes used for the selection of applicants at Google. However,
in general, the company’s selection process involves background checks, preliminary
screening, on-the-job tests, and interviews. Google’s human resource management
uses different procedures and steps for the various positions in the organization. For
instance, on-the-job tests are generally used for positions that are more frequently
filled through absorption of interns and trainees.

Google’s Employee Retention Programs

Google’s compensation packages are the main HRM tool that the company uses for
retaining high-quality human resources. The company’s compensation packages are
competitive and above average. For example, Google provides high salaries and
wages. In addition, employees get free meals and other incentives and benefits. The
typical design of the company’s offices emphasizes fun and creativity, which attract
and retain creative and innovative workers. Google’s human resource management
uses coaching and mentoring to retain and develop employees with leadership
potential.

“We provide a standard package of fringe benefits, but on top of that are first-class dinign
facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning,
commuting buses- just about anything a hardworking employee might want.”- Eric Schmidt,
CEO Google

EMPLOYEES

- Google receives more than 20000 resumes every week.

- New employees are called “Nooglers,”and are given a propeller beanie cap to wear on
their first Friday.
- Bicycles painted in the corporate color scheme are available for free use by any
employee travelling around Googleplex.

RETENTION TECHNIQUE

- As a motivation technique, Google uses a policy often called Innovation Time Off,
where Google engineers are encouraged to spend 20% of their work time on projects
that interest them. Some of Google’s newer services, such as Gmail, Google News,
Orkut, and Adsense originated from these independent endeavors. In a talk at
Stanford University, Marissa Mayer, Google’s Vice President of Search products and
User Experience until July 2012, showed that half of all new product launches in the
second half of 2005 had originated from the Innovation Time Off.

HEALTHY WORK-LIFE BALANCE

- Flexible work hours, part time

- Work options and telecommuting if the specific job allows
- Workout room with weights
- Locker rooms
- Washers and dryers
- Massage room
- Assorted video games
- Foosball
- Baby grand piano
- Pool table
- Roller hockey twice a week in the company parking lot
- Snacking rooms with free snack foods, fruit and beverages
- Free breakfast, lunch, dinner at the employee café
GOOGLE, in short

- HR functions and policies align with business model and vision makes Google the
most exciting young technology company to work for.
- Healthy work-life balance is motivating people
- Ï trust the people I work for, have pride in what I do, and enjoy the people I work
with.”
- Trust is written on the psychological contract.
- Good employment relations, employee relations
- High employment involvement
- More likely engage in discretionary behaviour
- Positive organizational citizenship behaviour
- High job satisfaction and commitment, even self-motivated.

GOOGLE’S HR PLANNING

1. Forecasting

- Human resource manager at Google use Trend analysis and scenario analysis.

2. Surplus and Shortage of Employees

- Concerns about surplus or shortage of employees at Google are mostly in the

production processes such as the manufacture of Chrome cast.

3. Balancing Supply and Demand

- Google’s human resource management faces minimal problems when it comes to

balancing HR supply and demand.

- Google uses a flexible strategy where new employees are hired based on forecasts of
human resource needs.