Pay Level

Question 1

What is Google’s pay level? How do you define and measure its pay level? How is it captured by salary alone?Does your answer to the above question depend on what point in time is it answered? For example, what is Google’s pay level the day before it re-priced employee stock options? What was Google’s pay level the day after it re-priced employee stock options? And how?Why did Google re-price its stock options and also give a 10 percent salary increase (in an era when 2 to 3 percent annual salary increase budgets are the norm)? Is it because its business strategy and/or product life cycle changed? Is it because it was concerned that employees’ perceived value of compensation did not match what Google was spending?Do you think Google has made the right choices in changing its compensation strategy? How much do these changes cost? How do theses costs compare to Google’s total costs and operating income? Are these increased compensation costs likely to be a good investment? In other words, will they pay for themselves (and more)? Explain.Will Google’s pay strategy work “forever”? Consider the evolution of Microsoft’s pay strategy as its growth slackened. Should Google prepare for a similar future? If so, when and what sort of actions should they take to prepare?

Question 2

  • Based on one of this week’s articles, “Filling in Around the Edges,” you’ve learned about the wide variety of potential employer-sponsored benefits found within today’s organizations. For this week’s application, think of an organization with which you are familiar. What do you believe this organization’s ideal benefits portfolio would be in order to optimize employee recruitment and retention.
  • In a 1-page submission, briefly describe the organization, and then design the voluntary, supplemental, and other benefits that you believe to be the best fit for this organization based on your understanding of its needs and financial abilities. In your submission, be sure to highlight at least two benefits that you believe would be optimal for this organization, as well as two benefits that you believe would be unsuitable, and explain your reasoning.
  • Atkinson, W. (2009). Filling in around the edges. HRMagazine54(11), 55–58.

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