Running head: ALPHABET INC. 7 STRAYER UNIVERSITY Yvonne Winn  Dr. Teresa Wilburn  Compensation Practice February 11, 2020 ALPHABET INC. Alphabet Inc. is a multinational public traded corporation with a wide array of resources. It has managed to stay relevant mostly in the technology industry by diversifying its products and services tapping into various sectors. Accountability has been at its core values for a long time. Based on a collection of companies, it is also independent in itself managed by competent leaders. The company is also majorly focused on innovation and research, stretching boundaries, and increasing growth exponentially. Furthermore, all the companies under Alphabet Inc. are independent to develop their systems for better services and products. The ambition of Alphabet Inc. is tremendous as it strives to empower entrepreneurs, be more transparent, and positively touch as many lives as it can. The company's current achievements are in high proportions giving its credibility to be looked at since it also had a lot of history trying to implement different structural operations to get the best strategies explained by Michaud (1982). The companies within Alphabet Inc. are controlled by the large corporation, which also determined the compensations for the CEOs who run them, providing them with resources needed, such as general capital allocation, to achieve their goals. The financials for the controlled companies within are separately reported from Alphabet being the first company. The shares of the subsidiary companies under Alphabet are publicly traded under the Alphabet's name and brand. This also includes similar rights as the parent company. Investment growth goals have had an impact on the development of Alphabet Inc. as a whole. Compensation strategies at Alphabet have variations depending on who the compensation is aimed at. Procedures such as Stock type compensation can lead to negative impacts on the company as a whole. This is majorly countered by the use of RSUs, which Alphabet Inc. utilizes to their advantage. Their compensation strategy is quite competitive with diversified policies. This mostly considers high-performance employees as all employees are provided with equal opportunities to grow their skills and develop themselves the best way they can. Referred to as competitive compensation, it has boosted the performance of various sectors within the large corporation. The competitiveness of this strategy has proven to be viable compared to other compensation strategies in other competitive companies to Alphabet. Alphabet has a compensation structure that creates a precise framework defining the strategies set for any compensation or benefits. For Alphabet, the fabric has a compensation committee and ways to cater to everyone, depending on their reasons for payment and their working positions. The compensations come in different forms. With quite huge salaries, beneficial incentives, and other pro.

1. Running head: ALPHABET INC. 7
STRAYER UNIVERSITY
Yvonne Winn
Dr. Teresa Wilburn
Compensation Practice
February 11, 2020
ALPHABET INC.
Alphabet Inc. is a multinational public traded corporation with a
wide array of resources. It has managed to stay relevant mostly
in the technology industry by diversifying its products and
services tapping into various sectors. Accountability has been at
its core values for a long time. Based on a collection of
companies, it is also independent in itself managed by
competent leaders.
The company is also majorly focused on innovation and
research, stretching boundaries, and increasing growth
exponentially. Furthermore, all the companies under Alphabet
Inc. are independent to develop their systems for better services
and products.
The ambition of Alphabet Inc. is tremendous as it strives to
empower entrepreneurs, be more transparent, and positively

2. touch as many lives as it can. The company's current
achievements are in high proportions giving its credibility to be
looked at since it also had a lot of history trying to implement
different structural operations to get the best strategies
explained by Michaud (1982).
The companies within Alphabet Inc. are controlled by the large
corporation, which also determined the compensations for the
CEOs who run them, providing them with resources needed,
such as general capital allocation, to achieve their goals. The
financials for the controlled companies within are separately
reported from Alphabet being the first company. The shares of
the subsidiary companies under Alphabet are publicly traded
under the Alphabet's name and brand. This also includes similar
rights as the parent company.
Investment growth goals have had an impact on the
development of Alphabet Inc. as a whole.
Compensation strategies at Alphabet have variations depending
on who the compensation is aimed at. Procedures such as Stock
type compensation can lead to negative impacts on the company
as a whole. This is majorly countered by the use of RSUs, which
Alphabet Inc. utilizes to their advantage.
Their compensation strategy is quite competitive with
diversified policies. This mostly considers high-performance
employees as all employees are provided with equal
opportunities to grow their skills and develop themselves the
best way they can. Referred to as competitive compensation, it
has boosted the performance of various sectors within the large
corporation. The competitiveness of this strategy has proven to
be viable compared to other compensation strategies in other
competitive companies to Alphabet.
Alphabet has a compensation structure that creates a precise
framework defining the strategies set for any compensation or
benefits. For Alphabet, the fabric has a compensation committee
and ways to cater to everyone, depending on their reasons for
payment and their working positions.
The compensations come in different forms. With quite huge

3. salaries, beneficial incentives, and other provided benefits from
the company, the allowance allocated seems to be attractive to
most if not all employees working in Alphabet and all its
subsidiaries, ultimately attracting employees with diverse
competitive skills and qualifications. This appears to be the best
practice policy that the company has implemented.
Apart from that, moral incentives are also part of the provided
incentives with benefits, including meals and medical care
insurances issued. Alphabet delivers some of the best working
environments for its employees. Alphabet often used
benchmarking actions within the organization for the
identification of unique high-performance employees.
Performance data is gathered and analyzed to determine them
with benchmarking standards assessments.
A specific competitive compensation system is also given to
Alphabet’s top executives, together with non-executive
personnel. $1000 cash holiday bonus is issued during the
Christmas holiday season for better performing on-executive
together with a percentage increase in their set salary.
Apart from the competitive competition, Alphabet also provides
equity award programs as part of their plan sin compensations,
which also retains current working personnel.
The use of stock ownership and profit-sharing programs is a
crucial aspect of employee compensation working at Alphabet
Inc. This is a motivation strategy of rewarding employees for
any better work done within the company. This not only
encourages the Alphabet's overall growth; it also builds upon
the stock process and ownership stock increase.
The compensation strategies have positive benefits without a
doubt, but they also come with their challenges as well. The
occupations are relatively different when it comes to
comparability with gender. The total compensations vary
regarding wages. Also, there isn't a system set up for the
evaluation of the employee job positions within the company.
The compensation systems seem to also have a significant
reduction in the general employment window for the female

4. gender. Condensation costs for working employees varied in
amount. These are major occurring problems brought up due to
the Alphabet's compensation policies.
Feedback on the Alphabet's compensation policies has enabled
it to adjust the percentages in benefits and compensations issued
to its employees. All compensation strategies have either a
positive impact or a negative one, which affects the company as
a whole.
Through its compensation policies, Alphabet has been able to
gather data on the impact the plans have had on the company.
Alphabet has seen an increase in additional costs in different
forms of compensations. The benefits costs related to stock-
based payment had drastically had a rise mostly due to more
employees joining the company and getting benefits and
rewards for their work.
Labor unions often have a direct relation to the raising of
employee compensations as well as benefits and wages. This
can be up to a 20% increase. They also deal with inequality in
wages since they mainly deal with the rising of middle-wage
and low-wage employees when they are compared to higher-
wage employees.
They mainly focus on catering mostly to blue-collar jobs and
employees who don't have high academic credentials. They
influence the standard to which nonunion companies or
organizations have to follow. Such unions have to be big and
strong enough to do this very effectively; otherwise, the
policies may end up in a devastating state, mostly for the
employees represented by the unions.
Unionized employees can get to enjoy fringe benefits such as
health insurance, paid leave, and pension plans incentives which
nonunionized employees may never get a chance to experience.
Other laws, such as specific state labor laws also have strict
regulations that protect employee rights and compensation
recommendations say Levine, (1998).
Non-compliance of employers on employee compensations from
unions set rules can have a massive impact on any company's

5. business operations. The unions have the power to ensure the
rights of employees are respected and implemented. Their role
is pivotal in any employee's career and labor rights.
Looking at Alphabet’s traditional base for pay, for sure, it can
be consistent and seem fair, but its results can be unexpected
and unpredictable, depending on the growth and development of
the company. This traditional system can also incur costs that
are higher than intended.
Alphabet has used a variety of compensation base for pay
models that may now seem obsolete but may still be used in
other firms. These included: Implementation of practice-
effective pay, merit-based pay, paying for the job, and paying
the person. A traditional system such as merit-pay from
Alphabet resulted in a lack of a link between work performance
and general compensation.
Some of the models, such as the practice-effective model has
provided more positive results compared to the other traditional
systems that were implemented by Alphabet Inc. The company
used this system because it proved to be relatively active before
the main structure was implemented. First of all, the bonus
payments are variable, which depends on the employee’s unique
performance combined with the base salary of the employee.
Through this system, increasing operating costs are cut since
they can be controlled. Moreover, unity is built as rewards are
appropriately managed. This also gives motivation to employees
to embrace innovation and, most importantly, learn to self-
manage themselves breaking down associated bureaucracy says
Rotan, (1993).
The system also breaks hierarchy within Alphabet Inc.
Teamwork is an integral part of the system bringing everyone
together through intergroup collaboration. A lot can be achieved
when a couple of minds are put together to solve a problem or
development of a product or service.
Lastly, its adaptability to effective change is efficient and
practical at the same time. Focus can be maintained whenever a
change occurs, and solutions provided obtained faster no matter

6. what comes in the way.
Alphabet Inc. put up a couple of processes that needed to be
followed for efficient implementation of the practice-effective
pay. These include:
· Job analysis assessments for the determination of abilities,
knowledge, and skills for productive performance in a job
position.
· Development of descriptions for the jobs
· Base salary establishment for all employees, which will be
determined by the market’s information form analysis.
· Identification of critical aspects of the practice-effectiveness
system. These can come from research on profitability and
client satisfaction.
· Measurement and evaluation of the practice’s positive impact
in all identification areas.
· Development of formulas for determination of distribution
bonuses based on the positive impact obtained
Everything has an advantage, no matter how good it seems. The
practice-effective model used by Alphabet had its issue despite
being the best traditional system implemented at that time.
Exponents of the practice-effective traditional system have
shown that getting a clear connection between the model and
performance pay seems impossible. The issue may not have a
significant impact on smaller practices but can be seen in high-
performance exercises.
Conclusion
Whichever compensation system is chosen, all have their
advantages and disadvantages. Choosing the right one for a
company determines a lot of variables present in the operations
of the company. A proper job analysis ought to be done to avoid
additional costs and losses in resources in the future. The
systems should ultimately be based on practices. The use of
different compensation systems may be ideal, depending on the
employee positions and compatibility. All in all, it should align
with the overall core values of the company.
References

7. Michaud, J., & Montana. (1982). Employee compensation.
Helena, Mont.: Personnel and Labor Relations Study
Commission.
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Rotan, B. L., & United States. (1993). Cooperative employee
compensation.
Levine, L., & Library of Congress. (1998). Employee
compensation: A fact sheet. Washington, D.C.: Congressional
Research Service, Library of Congress.
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