Google employees dissatisfied with the abolition of welfare making

Provide generous employee benefits has been a Western companies to attract talents join, and to win "best corporate employers" reputation of the measure, but with the decline in the global economy, abolition of the welfare of the staff as many companies had to pursue the strategy, This also paid a heavy price

Inadvertently made a decision, but changed the industry on Google the past a good impression.

Earlier this summer, Google change the day-care policies, a substantial increase day-care costs, it is this change, employees have expressed dissatisfaction. Wharton professors and welfare experts believe that Google in fact it is not very suddenly. Abolition of any form of additional benefits can be felt by the staff live up to, or even retaliation for the company Heart of Italy. But in the current economic decline under the influence, more enterprises will reduce staff additional benefits.

It is understood that Google's infant day-care costs from the original 1,425 U.S. dollars per month rose to 2,500 U.S. dollars, child day-care costs each year from 33,000 U.S. dollars rose to 57,000 U.S. dollars. The original 700 people who need to queue for admission to two years, after prices dropped by this figure, more than half. Google has this prestigious companies in the media, are now "New York Times" called "Benshoubenjiao" to reform the company.

Wharton professors and welfare experts believe that people change for Google's day-care policy fierce response reflects the abolition of the welfare of the staff of the difficulty. Wharton management professor Nanxi Luo Si Bade said, "Once you to the welfare of the staff, then it seems to be taken on the violation of the signed between you and the staff of the psychological contract."

Additional benefits include employees of the company Paiche traditional, private aircraft, all kinds of sufficient retirement benefits, and some very personalized welfare, for example, private coach, laundry services and Pets allowed to work, and so on. In Google, the first child born of parents in the coming weeks could be 500 U.S. dollars to buy take-away food.

It is understood that the U.S. Securities and Exchange Commission in 2006 as binding too generous employee benefits, introduced a strict information disclosure regulations, leading enterprises to gradually shrink the welfare of the staff.

Do not move my welfare

At present poor economic situation, could trigger a new round of "reducing benefits" trend. Wharton management professor Peter Kapulie said: "The board of directors opposed to this practice, because they believe that cuts in benefits undermine the company's image, but now the question is this approach to recruitment and retention of qualified personnel is of great significance. If the economic situation Relaxation, for the huge wave of welfare will make a comeback in 2001 when the economy improves we have seen this situation. "

Cappelli think some of the cost is not high, not even the cost of welfare, for example, allows employees to wear casual clothes to work, provided free coffee and dining discounts, likely to improve staff morale and increase productivity of little use, but they also Not consume profits. Enterprises in the reduction or abolition of welfare must be very careful. "No matter what you want to cancel, you are required to staff explaining the cancellation of the reasons. If this is the reason why external factors, the staff will be more understanding. In order to enhance stock and cuts in benefits are usually unable to get everyone's understanding."

Wharton management professor Selassie Erbasaide agreed that. He said: "I do not propose to abolish the company, but if the company, there are compelling reasons, the management must not forget that the abolition of the welfare of the staff employees will feel unfair." Because they generally believe that even then they are also the welfare of small owned by the .

Abolition of welfare is most likely to direct the staff angered one of the means, are angry employees will lose the impetus to work hard, and even acts of revenge. Can be a psychological form of retaliation, such as reduction of the work of the enthusiasm, but also from acts shown, for example, as previous work seriously. "If management does choose to cancel benefits, they must be very, very clearly explained to staff the necessity to do so, and to allow staff to find a fair way to explain."

Before additional benefits granted to senior management of the general staff. But Luosibade that good profits when the companies will also benefit the welfare of the lower-level employees. Google part of the problem lies in the fact that the former day-care services is that many employees can enjoy, or at least for many of the staff, and now the staff that day-care prices increased, reducing can enjoy the benefits of this number.

It is understood that Google is the first three and a half years ago through a company contract offer day-care services. A year later, the company also opened a day-care institutions, this institution more than the first high-end, from its own Google operating. Google was aware of their employees each year for each child day-care subsidies to 37,000 U.S. dollars, while other large companies in Silicon Valley an average of 12,000 U.S. dollars subsidies. But it does not have to gradually reduce the cost of the staff so that more children can Nursery, but choose to close the first relatively inexpensive day-care center, the second expansion wantonly expensive day-care institutions, resulting in significantly higher prices. Luosibade said, "It is hard to say that they are deliberately low-level employees to the door and I think they would like to emphasize quality, staff hope to provide a higher level of service, but prices rose only."

Enhance productivity

Harvard Business School business administration professor Julie Wolf that not all benefits will need a lot of costs, these benefits can be achieved motivate staff and improve staff productivity purposes. 2006, when Julie is Wharton professor and the others had a "welfare is simply to meet management's demand for luxury»

"This paper on the 1986-1999 period more than 300 listed companies conducted a survey study found that many welfare is aimed at improving management performance and the company's performance. Wolf said, "We found that although people in the eyes of management personnel to meet the demand for luxury, but our conclusion shows that although in some extreme cases to the management of welfare is indeed excessive luxury, but there is evidence that the company provide benefits The aim is to improve their productivity. "

Executives pay benefits consulting firm Towers Perrin's analysis showed that Fortune 500 companies revealed that 11% of their shareholders in 2007 in the power of attorney signed by the welfare cuts, the reduction is the largest car companies, followed by the club membership, Financial planning services, insurance benefits and security measures.

U.S. Securities and Exchange Commission's new regulations require businesses to disclose the total value of more than 10,000 U.S. dollars of additional allowances and personal welfare. More than 25,000 U.S. dollars (or more than the disclosure of the total value of 10 per cent) of the additional allowance must specify the amount of form of footnotes. In addition, the SFC also made it clear the temporary allowance or the definition of personal welfare, or confer any direct or indirect personal welfare, even with business-related expenses also belong to this area.

Towers Perrin benefits consulting division executives pay-La Tuode pointed out that most companies have "cancel" unnecessary additional allowances. Sometimes companies need to report individual executives as a welfare payment of additional allowances, but the staff allowance is not required or hope. For example, some companies in foreign countries held regular board of directors, executives asked the spouses, also attended to help the auspices of a number of social activities. If their spouses on the plane to go to this part of the cost of travel by plane to be disclosed. She said, "Many spouses do not think this is a holiday abroad. Frankly speaking, many of the SFC called 'additional allowance' welfare, in fact, the people receiving welfare benefits do not think it is welfare, they would say, 'Thank you , I do not want to '. "

Another common example is the company's executives for the protection of personal safety, can also say that the protection of the business of the company security, installed in their home of the high cost of the security system. Todd said that "the security system cost money, but these executives think, 'Thank you, I prefer to cash.'" On the other hand, a reasonable additional allowance is "value for money." She had seen some executives refused to cash benefits, want the company Paiju, although the value of the company Paiche much less than the cash benefits, the reasons for him just because he or additional benefits and the emotional ties between.

Todd pointed out that requiring additional benefits of personalized voice growing strongly, because team executives are increasingly diversified. "In the past the executive team are all-white males, they like the same things.. Now some executives of the children were young, compared to the club membership, they are more like companies to provide day-care services." Ruth Bader, staff and companies often develop their "individuality welfare plan", that is, from the staff they need the additional benefits. She said, "These plans are usually not foreign propaganda, because you will then feel that the contrast between their own welfare than others." Whether to employees or companies, such personalized than the welfare plan "to provide exactly the same as everyone The welfare "is much more attractive.

In the workplace to create family-like atmosphere to attract staff and an important means to increase productivity. Although the recent media on Google's negative report, but Google did launch a lot of work aimed at reassuring the staff of the welfare measures, such as the installation of wireless Internet access on the bus ports, so employees can continue to work on board and another 24 - Hour coffee shop, overtime for staff services. Silicon Valley's high-tech companies in the provision of welfare has been the forefront of innovation, because of the intense competition in Silicon Valley, between the staff and two-way flow of very frequent.

Cancel or not cancel »

Perkspot.com Chicago is a management plan for employees in the company, its CEO Cris Hill pointed out that some of the additional benefits introduced by the staff is their own choice to accept or give up. Mobile phone companies, local restaurants, flowers and gift companies and other enterprises hope to offer discounts to enterprises, and enterprises such concessions then transferred to their employees, this can achieve a win-win situation. Of the enterprises, do not spend any cost can provide benefits to employees, vendors, they can take this attract new customers.

"Now voluntary welfare of the enterprise more and more. With medical insurance, and other traditional welfare of the rising costs, companies are looking for some employees do not have to spend money but won the favor of welfare." Gelakesi Joseph said, "In fact, the company high Of the willing to pay for retirement benefits. "Gelakesi is the University of Chicago accounting professor, in 2005 he was the Standard & Poor's 500 companies, CEO of a survey and found that they reduce the wages of 48 cents per can for an increase 1 U.S. dollars of retirement benefits. In addition, he also found that the control of the board of directors and executives weaker compared to the influence of the board of directors of the executives to pay more to reduce retirement benefits for less. "We should consider the extent to which the employee is willing to pay for benefits. In the absence of tax benefits, employees may prefer to pay up rather than welfare, may be less willing to take one dollar of benefits to reduce the wage one dollar."

Luosibade also mentioned that enterprises do not want to cancel another reason for the additional benefits that they want to be rated as the best employers. "Not to provide additional benefits the company is not in the best list of employers." However, she also held that "welfare is not the only company of weapons. 'Google has been elected for two consecutive years," Fortune "magazine has named the' best employer" .

Cappelli that, while the abolition of additional benefits to bear the risks, but some managers want companies to do so. He said the majority of additional benefits by the companies are high-level unified decision, but the first-line managers need for the welfare of supervision. "Frontline staff managers usually like to conduct more direct control, they do not like this high-level decision unified management and the welfare of the way." Flexible working hours as an example to, in fact, directly on the welfare of first-line management is in charge, if the majority of Employees want to on Monday morning and Friday afternoon to enjoy flexible working hours, they must think of ways to maintain the operation of the company. "Compared to executives, those in charge of the task even more formidable, and they think that the economic downturn, the staff did not resign when the need to provide these additional benefits.