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Identify a company which has an incentive plan in place. You can use your own company, as well. How does the company culture affect the compensation philosophy? Discuss the strategy behind the compensation model and outline the plan design. Include the reasons to implement an incentive plan and the different types as it relates to individuals, groups and enterprise-wide. Why are these plans important and what makes them successful. Discuss with your peers.

The rapid changes in the global market have resulted in increased competition between organizations. Thus, companies need appropriate managerial strategies that increase market share and profitability of the business. Shields et al. (2015) noted that the performance of a company is greatly influenced by the employees’ behaviors. Implementation of strategies such as an incentive plan is vital in increasing employees’ motivation. An incentive plan refers to an organizational formal scheme used to encourage employees to attain a specific goal (Noviantoro, 2018). This paper intends to examine an incentive plan of Google Company. 

Google Company has an incentive plan that allows parents to get a break after having a child. According to D'Onfro (2018), the US requires all organizations to allow mothers six weeks off after having a child. However, Google’s plan gives new dads a six week paid leave while mothers are given 18 weeks of paid leave (D'Onfro, 2018). Mothers are also given a “baby bonding bucks” bonus of about $500 to help them with expenses such as diapers and meals. 

Culture has a great impact on the behaviors of employees. The culture of supporting families and the leave make employees be proud of working in a company that is empathetic about their needs unlike in other organizations. The incentive plan was designed to help employees balance work and their families (Noviantoro, 2018). Giving both parents the leave allows them to bond with the newborn as a complete family. The plan has positively impacted Google Company since the rate of employees’ turnover is low which saves the company the cost of recruiting and training new employees. As a result, the company was named as one of the best places to work for by fortune due to the iconic incentive plans that increase employees’ performance. 


D'Onfro, J. (2018). An Inside Look at Google's Best Employee Perks. Retrieved from

Noviantoro, T. (2018). ORGANIZATIONAL CULTURE IN GOOGLE INC. Retrieved from

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... & Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.

by EssayRoyal, Dec. 7, 2019, 6:04 p.m.

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