Free «Application of Reward and Recognition Strategy at Google and Yahoo» Essay

Application of Reward and Recognition Strategy at Google and Yahoo


Human resource strategy is an action plan, which integrates a company’s structure, staff potential, management capability, culture, and systems in an attempt to achieve the set goals and objectives. HR strategy links actions and processes to individuals within the firm. It is important to do a thorough analysis, in order to identify the personnel, characteristics, and major processes in an organization, prior to implementation of HR strategy. The plan provides a ground for the vision of an organization. It also acts as a stepping stone for success. Expanded operations in most enterprises have created the need for a good HR strategy. Good plan helps a firm to withstand global competition. The strategy might be costly but since it is inevitable, the HR department has to find ways of establishing a right strategy without compromising the organization’s efficiency, goals and objectives. HR strategies differ. The current paper analyzes and compares the application of reward and recognition strategy in Google and Yahoo corporations.

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Description of Google

Google Inc. is an American multinational corporation headquartered in Santa Clara County, California, United States. The corporation was formed in 1998 by Larry Page and Sergey Brin. Both were students at the famous Stanford University. The primary business of Google is provision of internet services. These include email services, cloud computing, online advertisement technology, software and search services and products. Google’s mission and vision is to organize the world’s information and make it universally accessible and useful. In a bid to grow its business, Google has partnered with other firms to produce high quality and low cost products and services, which have enabled it to grow, expand rapidly and compete favourably in the market.

Google has provided employment for more than fifty thousand people, which signifies a great step towards solving the world’s unemployment crisis (Lawler, Benson & McDermott 2012). Through Google, information is readily available, making people knowledgeable, thus reducing illiteracy levels among individuals. The world’s economic growth has been boosted by elimination of illiteracy and creation of wealth. The corporation is currently making billions of dollars through Initial Public Offering (IPO) and performing well in different stock exchange markets.

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Description of Yahoo

Yahoo is a company that provides internet services. It was established by David Filo and Jerry Yang in 1994. The two were Stanford University graduates. Initially, the company operated its founders’ names before re-branding to Yahoo a year later. The firm has its main customers online; hence client satisfaction is their priority. It entered the internet industry with mission of connecting people to their passions, communities, and the world’s knowledge. Efforts to uphold their mission have seen Yahoo in partnership with several online service providers that offer both premium and free Yahoo content. Yahoo brings the world together by availing latest news and information.

Yahoo has boosted expansion and globalization of most small businesses by offering shopping services. The service provides a platform, where business people meet, gave an access to different goodies – various online transactions. It also provides a business service, where owners of small businesses get business trends through Yahoo. Yahoo has its services worldwide and attracts millions of clients. The services and products offered are a great booster to the better living standards of people and economic growth. Just like its close competitor, Google, Yahoo has also engaged thousands of people. It is making remarkable returns and shining on stock exchange markets.

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Description of Reward and Recognition Strategy

Success of a firm is achieved through collective efforts. Unity and good interpersonal relationships amongst the staff play an important role in achieving the objectives of a firm. The main aim of an organization is to realize its goals and objectives (Moynihan 2008). It is not easy, hence a company should set goals that are realistic and put measures in place to steer those within towards them. The manner, in which managers carry out administrative duties, tells much about the behaviour and destiny of an organization. Employees are the determiners of a company’s fate. They can make it succeed or fail, depending on how they perform their duties and responsibilities. Workers are usually the majority in an enterprise and are entitled to grass-root operations. It is, therefore, easy for them to dictate the pace of a company.

According to Stewart (2014), human resource managers have to consider reward and recognition, while establishing a HR strategy. Rewarding motivates employees and makes them exploit their potential. Motivated workers do not require close monitoring in their line of duty. Rewards create a feeling of recognition. People feel that their efforts have been recognized and, hence, they are accepted as a part of the organization. Recognition involves the management being close and concerned with affairs of juniors. Welfare of workers and their families has to be catered for by the employer. Reward and recognition is aimed at creating a conducive and friendly working environment, so that the firm gets the best from those within, hence achieving its objectives (Armstrong 2014). 

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However, this strategy must be done in line with the culture and organization of a company. The reward should be proportional to the input and performance output. It should not be used to please employees but to appreciate their good performance. Recognition should help establish a sense of belonging among workers. All the workers must be recognized equitably without fear or favour (Armstrong 2014).

Reward and Recognition Strategy at Google

Most organizations employ this strategy to their workers. In order to enhance performance and growth of an enterprise, the human resource department of Google established the reward and recognition strategy to help quicken its steps towards objective achievement. Several procedures are laid down to oversee the implementation of this strategy (White 2014). Today, Google has successfully implemented the reward and recognition strategy within its working environment. By so doing, the company has realized rapid growth and is continuously attracting huge numbers of professionals willing to work with them. As such, it has always been easy for the company’s human resource department to recruit new employees. Google is the largest employer in the internet industry.

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For instance, Google has in its strategy the Employee Assistance Program. The program offers services aimed at improving employees’ well-being. Workers are subjected to financial counselling that equips them with knowledge concerning financial management and investment. In view of the same, the workers can now manage funds properly and most of them have invested their money and are living comfortably. It has helped to improve their living standards and economic growth. They are also provided with legal counselling, which sharpens their understanding of legal issues and procedures to be followed when dealing with legal matters. Other services under the same umbrella are child care referrals and short-term counselling. The services are enjoyed by the workers and their dependents.

The workers require some free time to rest and break the monotony, especially during holidays. The HR department had this in mind when they decided that employees are entitled to the paid holidays. A paid holiday enables employees to settle other issues and attend to their families effectively. It also helps them avoid stress during holidays and approach the work with a settled mind ready to carry on their duties. 

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Health is a crucial factor that makes up an individual’s life. Employees with strong health will willingly commit themselves to the company and are productive. Google ensures its staff has an automatic health coverage at affordable rates. They can also purchase an optional life insurance. With such initiatives, workers are less stressed and, hence, more focused on their duties. 

Sometimes, employees might fear to take up risky duties, or they do not perform perfectly in such fields due to worries of getting injured in the process. Employees at Google have short-term disability insurance coverage and they also access a long-term disability coverage if the effect prolongs. In addition, the company also extends business travel accident insurance, which is an automatic coverage at low rates. The plan motivates workers and encourages them not to fear taking up risky responsibilities.

Emergencies like sudden illness and accidents are common at work place. Some of them can turn out to be very dangerous and life-threatening. To deal with such situations, there are on-site doctors to offer immediate medication. They are also meant to provide medical services to those who may feel unwell while on duty. Physical therapy and chiropractic are some extra services that are also offered (Williams & Levy 2000).

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Maternity benefit, parental leave, and take-out benefit are extra services and benefits enjoyed by Google employees. These are just a few benefits among many rewards. Google society has succeeded in establishing the reward and recognition strategy. The company is well known for the provision of good working conditions and motivation.

Reward and Recognition Strategy at Yahoo

Yahoo was not left behind in the race. It also has reward and recognition strategy in place and is faring on quite well with its employees. Its staff enjoys several rewards. In order to avoid inconveniences caused to workers with young families, the company offers free day-care, which includes after-school care. It is purposed to give the employees ample time to work. To give its staff an opportunity to spend time with their families, Yahoo provides its employees with up to ten paid holidays. Paid holidays enable workers to deal with issues affecting them in readiness to return to duty (Taylor 2008). 

In an attempt to protect and guard health of its workers, the company initiated a flexible spending account that enables employees to access funds from the account when ailing or faced with health issues. In addition, the company also provides medical coverage upon its staff. The coverage takes in consideration employees and their families at large. It is aimed at avoiding straining individuals and lowering their performance levels (White 2014).

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Yahoo motivates its employees and empowers them financially. There is an investment scheme, where the staff can contribute up to 50% of their salary and access 25% of the amount from Yahoo. Through this, most of the workers are financially stable and have very few issues against them; hence they deliver their best to the organization. The organization also enables employees to save towards education. Yahoo provides sponsorship, pays tuition fees and other fees for its staff pursuing further studies.

The company also has a disability insurance coverage for its staff. The coverage compensates workers who suffer disability, while on duty. A specific amount is paid in case of a partial disability and a long-term disability. As a result of this coverage, the workers have been ready to carry out their duties without fear of being harmed. Yahoo provides fitness activities to those within the firm, for there is a free gym, yoga and golf. People can relax during their free time. The strategy has helped in according to employees’ recognition and motivation, resulting in good performance. It, thus, contributes a lot to the achievement of objectives (Hutchinson 2013).











Comparison of Reward and Recognition Strategy at Google and Yahoo

Both Google and Yahoo are characterized by application of reward and recognition strategy in their human resource departments. The strategy has worked well in both companies, helping them expand faster, compete favourably and achieve their goals and objectives. However, there are some similarities and differences in application of the strategy within these companies (Gooskens 2012).


Google and Yahoo implement benefits to their workers. Employees of both companies access short-term and long-term disability coverage for injuries sustained, while discharging duty. They also give their staff paid holidays, although Google gives twelve, while Yahoo pays for ten holidays only. Staff members of both companies have a guaranteed health and medical coverage. They also access and enjoy fitness and sports facilities on the compound. Investment services and benefits are offered freely to employees within these companies as a motivation factor. Workers are willing to upgrade their studies and also benefit from the college savings plan. Day care services are also available at Google and Yahoo.

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The strategy might be the same but be applied differently (Giancola 2014). In the case of Google and Yahoo, the mode, in which similar incentives are presented to workers, also differs from company to company. Google offers the employee assistance program, on-site doctor; maternity benefits, parental leave, financial planning classes, and business travel accident insurance to its employees, while Yahoo does not apply these programs.

Interpretation and Explanation of Similarities and Differences

Google and Yahoo, both give their workers the same rates of disability coverage. A short-term disability insurance covers 100% of their pay and thereafter a long-term disability insurance covers 60% if the latter expires. It is established to ensure that should a disability occur the victim has to be maintained financially stable. Google gives its employees twelve paid holidays to enable them sustain themselves while on holidays. Yahoo pays for up to ten holidays to its staff members. At Google, the workers are provided with automatic health coverage at double their annual earning in conjunction with an option of obtaining a life insurance. Yahoo applies the same strategy through a flexible spending account accessible to its members. Employees at Google can save in order to raise funds for further education. Yahoo, for its case, pays tuition fees for their workers at school. Through this practice, employees have managed to advance their studies. They have established careers and, as a result, their work is perfect (Armstrong 2014).

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The human resource department in a company is in charge of recruiting, sustaining and ensuring that staff is effective in fulfilling their duties. The department links employees to the top management. They must, therefore, protect the interests of both the company and the workers. Same HR strategies can be applied differently, depending on the culture, and organization of a company, as evident in the research. When the plans are laid and applied accordingly, the company easily meets its objectives. Thorough investigations are to be done and proper implementation procedures have to be put in place for the strategy to be effective.

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