Google Case Notes:

This case highlights the human resource management (HR) practices at Google that
are integral to the company’s long-term success. The case illustrates specific
components of Google’s HR strategy and also provides insights on some of the
challenges Google faces as it continues to grow. Specifically the case explores the
company’s benefits, pay, hiring, employee development, and employee retention
practices. The challenges shared include those related to the need to shift hiring
practices as a company grows, maintaining a strong company culture, and
internationalization.

Questions:

B-12. What do you think of the idea of Google correlating personal traits from the
employees’ answers on the survey to their performance, and then using that as the
basis for screening job candidates? In other words, is it or is it not a good idea? Please
explain your answer.
Hiring practices are clearly integral to Google’s success. Google depends on the talent
of its’ employees to maintain the company’s competitiveness and they use their
selection process to identify the talent that holds the traits that have helped them
succeed. As the company grows, their intensive interview process has become difficult
to maintain. Thus, an assessment that can screen candidates based on these
important traits will help effectively evaluate candidates.

However, there are legal implications in using tests in hiring, and thus, the company
needs to make sure that any test used is reliable and valid. The process of correlating
the personal traits that the employees reported to their performance demonstrates the
criterion validity of the traits. Thus, this process is a good idea to help develop a reliable
and valid test.

B-13. The benefits that Google pays obviously represent an enormous expense. Based
on what you know about Google and on what you read in this text, how would you
defend all these benefits if you’re making a presentation to the security analysts who
were analyzing Google’s performance?
Employee benefits are an important component of the total rewards an organization
offers its employees. Google makes a significant investment in benefits and the
benefits provided help to create the unique and creative company culture. This
company culture is an important component of the company’s overall strategy. Thus,
the investment in employee benefits is intended to contribute to the company strategy.
Google can use metrics to demonstrate this value to security analysts. Strategy-based
metrics, for example, focus on measuring how activities help achieve organizational
goals. In this case, Google might be able to demonstrate how the employee benefits
contribute to attracting and retaining top talent.

B-14. If you wanted to hire the brightest people around, how would you go about
recruiting and selecting them?
Google has built a reputation as a great place for the brightest people around to work.
This makes their recruiting process a little easier, but brings them selection challenges
as they get about one million job applicants a year. Their intensive selection practices
have shifted over the years to accommodate screening those candidates.

However, other companies may not have the reputation to attract the brightest and must
make strategic recruitment efforts to hire the brightest people. A larger pool of
candidates will likely yield the brightest employees. One thing that Google has done
effectively is that they have established a brand image as an attractive workplace. Their
benefits and work culture are known for inspiring creativity, and this attracts the bright
candidates they are seeking.

A company should then use targeted outside sources of candidates to attract the
brightest people. For example, a company can recruit on top college campuses, or ask
current employees for referrals.

From a selection perspective, a company can use an assessment tool such as a

cognitive ability test to select the brightest applicants. A structured interview process
that asks job-related questions can also help identify the brightest candidates in the
recruitment pool.

B-15. To support its growth and expansion strategy, Google wants (among other traits)
people who are super-bright and who work hard, often round-the-clock, and who are
flexible and maintain a decent work–life balance. List five specific HR policies or
practices that you think Google has implemented or should implement to support its
strategy, and explain your answer.
There are many HR policies or practices that can support its strategy to grow and
expand with the support of super-bright, hardworking employees. Some examples
include:
• Workplace policies that support a flexible and supportive work environment, such
as flexible work hours and convenience services such as on-site cafeterias.
• Employee benefits such as paid time-off, comprehensive healthcare insurance,
and generous retirement benefits that help employees relieve stress.
• Recruitment and selection practices that attract and select hard-working and
smart employees.
• Performance management systems that provide employees with valuable and
developmental feedback.
• Base and incentive pay plans that provide appropriate rewards to retain workers.

B-16. What sorts of factors do you think Google will have to take into consideration as it
tries transferring its culture and reward systems and way of doing business to its
operations abroad?
The first challenge Google will face is transferring its company culture to an international
context. The creative and flexible work environment may not be as accepted in different
national cultures. Further, incentives and rewards may not be effective in different
cultural contexts. For example, some cultures are less individualistic than the U.S., and
thus, our individual incentive awards may not be as effective. Wide variances in the
cost-of-living around the world also create challenges in establishing appropriate pay
levels.

B-17. Given the sorts of values and culture Google cherishes, briefly describe four
specific activities you suggest they pursue during new-employee orientation.
Just hiring the right employees will not ensure Google is successful. The onboarding or
new-employee orientation process is important to socialize the employee into the
organization’s culture and help them understand what workplace behaviors will help
them be successful. Given Google’s values and culture, the following are examples of
specific activities that could be included in the new-employee orientation:
• A review of Google’s policies, including the Employee Handbook, so that the
employee is aware of the benefits available, such as flexible work schedules.
• A tour of the facility so that the new employee knows of all the facilities and
benefits available.
• An introduction to the employee’s new team and possibly some team-building
activities to help them begin working with the team.
• A review of incentive pay plans or other reward programs so that the employee
understands what is rewarded.