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Unformatted text preview: proﬁtability over the past three years, and we used those data to group the companies into performance quartiles, adjusting for industryspeciﬁc revenue and margin diﬀerences.
From that analysis, we compared the ranking of HR capabilities of high- and low-performing companies in each
industry. One topic in particular stands out: improving performance management and rewards was ranked the secondhighest capability by high-performing companies, but
only ninth by low performers. Excellent ﬁnancial performance clearly correlates with a focus on employee performance and rewards. Three other capabilities—measuring workforce performance, enhancing employee engagement,
and transforming HR into a strategic partner—also ranked
higher among high performers than among low performers, but to a lesser extent.
In terms of perceived HR performance, respondents
who were asked which company has the best HR practices overwhelmingly chose Google, followed by
Procter & Gamble and Microso . (See the sidebar “HR
for ‘Googlers’: How a Giant Company Aims to Remain Intimate.”) HR for “Googlers”
How a Giant Company Aims to Remain Intimate
Google has an impressive track record and an enviable
reputation for people management. It routinely ranks ﬁrst
or near the top in “best places to work” reports. What ingredients account for Google’s success as an employer—
beyond, of course, its ﬁnancial and market success?
Google’s value proposition as an employer combines a laser focus on innovation and smart business practices with
a small-company feel that includes direct access to top
management. For instance, no one hesitates to pose questions directly to the founders at the weekly all-hands
The HR management system plays a critical role in keeping this value proposition well tuned and relevant for each
successive generation of employees by embedding
Google’s mission into daily work life. As Laszlo Bock, vice
president of people operations at Google, said in an interview with BCG: “If you talk to anybody at Google and ask
them what the mission is, they’ll say, ‘To organize the
world’s information and make it universally accessible
and useful.’ It’s rare to ﬁnd a place where everyone knows
the mission—and then actually believes it.” Google’s beneﬁts and compensation packages, renowned
for their largess, have a threefold purpose, Bock pointed
out. First, to create a community—hence the microkitchens sprinkled around the oﬃces, where people can interact informally. Second, to drive innovation: the more people interact, the higher the likelihood of creating
serendipitous sparks of innovation. And third, to promote
eﬃciency: on-site oil changes and dry-cleaning services
help hard-working employees save time in their personal
To keep a pulse on how “Googlers” are feeling, which informs talent-management and development programs,
HR undertakes a variety of analyses, Bock said. The company monitors...
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- Fall '13