Tag Archives: hiring

Pay and Perks: Google Versus Health Care

A Comparison of Compensation Packages

According to Cable News Network’s (2012a, 2012b) annual Fortune Magazine 100 Best Companies to Work For, Google sets the standard for employer-provided compensation and fringe benefits. This paper will discuss, compare, and contrast the differences between some of the more interesting and innovative employee benefits offered by Fortune Magazine’s best company to work for, Google, and Southern Ohio Medical Center, Fortune Magazine’s leading health care organization, according to the same list.

The Importance of Investing in the Employee

Fallon and McConnell (2007) clearly demonstrate that employers must be current and competitive with respect to compensation in order to attract and maintain a competent and able workforce. The need for each level of competency and ability differs from employer to employer, and even between industries, which provides employers the flexibility to match compensation levels with the level of talent required. Employers merely requiring entry-level, unskilled talent will more than likely provide less total compensation than those employers who wish to be cutting-edge and innovative, requiring a pool of innovating and proven leaders in their field.

Employees who are more comfortable and accepted in the workplace tend to be more productive, especially when assured that outside influences, such as illnesses, childcare issues, and, according to Google’s Executive Chairman, laundry, are mitigated (Fallon & McConnell, 2007; Google, n.d. a). Employees, however, have different needs, and employers need to stay mindful as these needs change by offering a comprehensive array of flexible benefits at a cost conducive to use (Fallon & McConnell, 2007). Many organizations fail to consider this and end up wasting valuable resources on less than attractive benefits.

Google

Google, a relatively young company that was incorporated in 1998, has pushed the boundaries of technology, but the company has always maintained the philosophy of focusing on a single thing and doing it well (Google, n.d. b, n.d. c). Striving for technological excellence, to Google, means striving to attract the most innovative workforce (Google, n.d. a). To this end, Google offers a compensation package that no other can rival.

According to their website, Google (n.d. a) provides a host of benefits, including the typical health, dental, and vision insurance plans, sick days, vacation days, and a very attractive commitment towards each employees retirement, but they also offer atypical fringe benefits, such as gift matching employee donations, adoption assistance, financial planning, and an on-site physician, among others. Free gourmet meals and snacks as well as on-site oil change and car wash services, bike repair, fitness classes, gym, massage therapy, hair stylist, and dry cleaning top off the total compensation package offered to Google employees.

It is no wonder that Google heads the list of best employers, but how can a typical health care organization stack up against the world’s leading search engine provider (Cable News Network, 2012a, 2012b)?

Southern Ohio Medical Center

Southern Ohio Medical Center (2010a) is a 222-bed hospital located in Portsmouth, Ohio, and employs 2,200 people in addition to 140 physicians and specialists. Southern Ohio Medical Center is a more typical example of a large employer, and it might even be unfair to compare and contrast benefit packages with such an atypical company as Google, but I will do so, anyway.

According to Fortune Magazine (Cable New Network, 2012c), Southern Ohio Medical Center has cultivated a culture of teamwork and compassion that permeate the ranks, and this intangible characteristic helps to make this hospital one of the leading employers in the country.

Working for Southern Ohio Medical Center entitles employees to a comprehensive array of benefits. Though not as comprehensive as Google, Southern Ohio Medical Center employees to enjoy the typical health, dental, and vision insurance plans, sick days, vacation days, and an attractive retirement plan (Southern Ohio Medical Center, 2010b). Southern Ohio Medical Center (2010b) also offers atypical fringe benefits, such as sick child care, pet health insurance, a wellness program, and a number of discount programs for employees to enjoy.

According to Fortune Magazine (Cable News Network, 2012c), Southern Ohio Medical Center enjoys excellent growth with controlled turnover. The compensation package offered to this hospital’s employees reflects the simply stated cardinal value of the hospital: “We honor the dignity and worth of each person” (Southern Ohio Medical Center, 2010a, para. 7). It would seem that this could be the reason that Southern Ohio Medical Center maintains the #36 spot on Fortune Magazine’s (Cable News Network, 2012a) list of best employers of 2012.

Discussion

As stated above, it is almost unfair to compare and contrast these two very different organizations; however, both organizations seem to share some core values that promote the integrity and innovation within their cultures necessary to succeed in their vision. This is emphatically apparent as both organizations hold respectable rankings as Fortune Magazine’s (Cable News Network, 2012a) best employers.

As a prospective employee, I certainly realize the importance of most of the benefits offered by both organizations, especially health and retirement programs, and the atypical fringe benefits offered by both seem to convey a sense of investment in the employee, which helps to shape each organization’s culture. By investing in each employee and cultivating the organizational culture, the financial implication, it would seem, would benefit the organization as a whole, allowing for positive growth and innovation, especially within a health care organization.

This paper should clearly demonstrate the sometimes not-so-obvious link between an organization’s value statement, the actual values of the organization, the leverage of these values on the employee, and the result towards achieving the organization’s goals. Compensation packages appear to have direct correlation between organizational values and the organizational value placed on the individual employee. As such, human resource managers, when preparing or analyzing compensation packages, should first look to the organization’s value statement to guide and inspire them to continue to promote the value of the employee.

References

Cable News Network. (2012a, February 6). 100 best companies to work for. Fortune Magazine. Retrieved from http://money.cnn.com/magazines/fortune/best-companies/2012/

Cable News Network. (2012b, February 6). Google – best companies to work for 2012. Fortune Magazine. Retrieved from http://money.cnn.com/magazines/ fortune/best-companies/2012/snapshots/36.html

Cable News Network. (2012c, February 6). Southern Ohio Medical Center – best companies to work for 2012. Fortune Magazine. Retrieved from http://money.cnn.com/magazines/ fortune/best-companies/2012/snapshots/36.html

Fallon, L. F. & McConnell, C. R. (2007). Human resource management in health care: principles and practice. Sudbury, MA: Jones & Bartlett.

Google. (n.d. a). Benefits. Retrieved from http://www.google.com/jobs/lifeatgoogle/benefits/

Google. (n.d. b). Google history. Retrieved from http://www.google.com/about/company/ history.html

Google (n.d. c). Our philosophy. Retrieved from http://www.google.com/about/company/ tenthings.html

Southern Ohio Medical Center. (2010a). About SOMC. Retrieved from http://www.somc.org/ about/

Southern Ohio Medical Center. (2010b). Employee benefits. Retrieved from http://www.somc.org/jobs/benefits/

Hiring by Organizational Fit

The Prevailing Organizational Culture

Recruiting new employees involves being mindful to the predominant organizational culture and how the applicant will relate and interact with the current employees (Cable & Judge, 1997; Fallon & McConnell, 2007). For instance, in a highly team-structured, or cooperative, environment, a highly competitive applicant may find difficulty in overall acceptance by the team, and both the applicant’s job performance and that of the team may suffer (Chatman, 1989). However, when the organizational values match that of the applicant’s, then a prediction can be made that job satisfaction and organizational commitment will be higher (Cable & Judge, 1997; Tsai, Chi, & Huang, 2011; Vandenberghe, 1999).

This paper will discuss organizational culture and the benefits and drawbacks of recruiting processes focused on maintaining or altering the status quo.

Recruiting Organizational Culture

The term organizational culture has been used since the early 1980’s to capture the perceptions, values, behavioral norms, and expectations inherent in an organization (Vandenberghe, 1999). This culture could be a result of certain pressure from the leadership or a natural environmental attainment; however, hiring practices certainly have an impact on the organizational culture by adding the influences of new personalities into the culture (Cable & Judge, 1997; Chatman, 1989; Tsai, Chi, & Huang, 2011; Vandenberghe, 1999). Recruiters and managers, by hiring based on organizational fit, are able to exert influence over the direction of the organizational culture as well as help to limit turnover and attrition (Cable & Judge, 1997; Chatman, 1989; Christensen & Wright, 2011; Tsai, Chi, & Huang, 2011; Vandenberghe, 1999).

One problem surrounding the use of organizational fit is the propensity of applicants to utilize influence tactics to alter the perceptions of the interviewer (Higgins & Judge, 2004). As Fallon and McConnell (2007) discuss, an inexperienced interviewer could be overly influenced by an applicant. “No one has yet devised a reliable way to separate the applicants who simply talk a good job from those who will later do a good job” (Fallon & McConnell, 2007, p. 179). A very charismatic applicant might benefit over a more qualified applicant.

The benefits, however, of considering organizational fit and value congruency between applicants and the organization are best appreciated after job fit, or the consideration of qualifications and experience, is determined. In a hiring process where applicant qualifications and experiences have already been vetted and references already checked, organizational fit can be used to further the success of both the organization and the applicant (Christensen & Wright, 2011; Tsai, Chi, & Huang, 2011).

Another benefit considering organizational fit is public service motivation. Christensen and Wright (2011) explore the relationship between applicants who have strong motivations towards public service and organizations, whether public or private, that share that motivation. Christensen and Wright show a result of increased job satisfaction when public service motivations are congruent between applicant and organization; however, this link appears fairly weak when compared to financial incentives.

Relying on Résumés and Portfolios

While most assessments of organizational fit are made in the interview environment, résumé contents offer useful information. Although Higgins and Judge (2004) regarded self-promotion tactics (résumés and portfolios) as “weak and nonsignificant” (p. 630), ergo, less powerful than personal influence tactics, Tsai, Chi, and Huang (2011) later show that specific pertinent résumé content improved perceptions of employability: “to select applicants with suitable attributes, recruiters would refer to specific résumé content as the basis for making inferences about applicants’ values or personality” (p. 236). Work experience and extracurricular activities, according to Tsai, Chi, and Huang, provide the most insight into an applicant’s values and personality, which would influence organizational fit.

One drawback to relying on a document, such as a résumé or a portfolio, to provide insight into an applicant’s values or personality is that often these documents are prepared by a third party whose personality and values might influence the choice of content, thereby influencing the reader.

Legal and Regulatory Implications

Fallon and McConnell (2007) readily discuss the legal requirements and implications of the hiring process and making judgments of the applicant that are not directly related to the job; however, if intangible traits can be related to improved job performance, it is recommended to probe for these after ensuring adequate qualification and experience. In order to show that these intangible traits (e.g. innovation, team orientation, stability, attention to detail) are relevant, the job description could be altered in effect to demonstrate this and limit legal implications of a subjective hiring process. Certain prohibitions will still stand, such as disability, race, color, creed, religion, et al.

Discussion

By understanding the culture of their organization, managers and recruiters can, to a degree, help to shift the cultural paradigm by choosing applicants who share similar values and beliefs that would be believed to enhance the culture of the organization. Although each job requires an applicant with the requisite knowledge, skills, and abilities to perform the job, certain intangibles, including congruence with the prevailing organizational culture, will help to ensure a healthy and lasting employment relationship.

References

Cable, D. M. & Judge, T. A. (1997). Interviewers’ perceptions of person – Organization fit and organizational selection decisions. Journal of Applied Psychology, 82(4), 546-561. doi:10.1037/0021-9010.82.4.546

Chatman, J. A. (1989). Improving interactional organizational research: a model of person-organization fit. Academy of Management Review, 14(3), 333-349. doi:10.5465/AMR.1989.4279063

Christensen, R. K. & Wright, B. E. (2011). The effects of public service motivation on job choice decisions: Exploring the contributions of person-organization fit and person-job fit. Applied Psychology: An International Review, 60(2), 231–254. doi:10.1111/j.1464-0597.2010.00434.x

Fallon, L. F. & McConnell, C. R. (2007). Human resource management in health care: principles and practice. Sudbury, MA: Jones & Bartlett.

Higgins, C. A. & Judge, T. A. (2004). The effect of applicant influence tactics on recruiter perceptions of fit and hiring recommendations: a field study. Journal of Applied Psychology, 89(4), 622-632. doi:10.1037/0021-9010.89.4.622

Tsai, W., Chi, N., & Huang, T. (2011). The effects of applicant résumé contents on recruiters’ hiring recommendations: The mediating roles of recruiter fit perceptions. Applied Psychology: An International Review, 60(2), 231–254. doi:10.1111/j.1464-0597.2010.00434.x

Vandenberghe, C. (1999). Organizational culture, person-culture fit, and turnover: a replication in the health care industry. Journal of Organizational Behavior, 20(2), 175-184. doi:10.1002/(SICI)1099-1379(199903)20:2<175::AID-JOB882>3.0.CO;2-E

The Hiring Process & Social Media

Social media has blossomed in the past few years beyond what many could have imagined. Today, it seems that many people engage others on the internet and social media without regard to their own personal privacy. Additionally, according to Jones and Behling (2010), privacy settings within social media applications tend to be complex, which inhibits their effective use by privacy-minded users. The result is an open and rich source of personal data, the problem of which is context.

I view social media as personal advertising where, unless specifically stated in the terms of service, the information posted by others is considered to have entered the public domain; others may view social media in the light of property rights where, although many people might not lock their front door, the invitation to invade the space is not assumed (Rosen, 2009). Regardless of personal views, information seekers need to be mindful of three things: 1) the terms of service for using the application resources, 2) the privacy policy in effect for using the application resources, and 3) the context of entries and the audience each entry is meant to reach (Jones & Behling, 2010; Rosen, 2009). Considering that the personal data made available on social media applications is not typical of allowable employment interview scenarios, employers need to be mindful that searching out this information may lead to unethical and illegal hiring practices (Fallon & McConnell, 2007; Jones & Behling, 2010; Rosen, 2009). Still, employers use social media to further vet applicants (Jones & Behling, 2010). Another consideration along similar lines is the use of generic web-based searches that could uncover similar information (Rosen, 2009).

In the case study provided by Coutu (2007), Virginia performed an internet search on Mimi and know suffers the problem that one cannot unknow knowledge. Additionally, Virginia know feels ethically compelled to share this information with Fred, the CEO. While this information would not be pertinent in the hiring process of a line employee, staff employees require more scrutiny, especially those that are being vetted for significant leadership positions. Rosen (2009) states, “employers do have broader discretion if such behavior would damage a company, hurt business interests, or be inconsistent with business needs” (para. 15). With this in mind, I tend to consider the paradigm of privacy practices when confronted with public officials and celebrities. A public head of a company or division might not have the same expectations of privacy afforded to a typical job applicant, but this would be a question for lawyers, as Mimi alludes to in the case study.

Basing the decision to investigate Mimi via Google on the general welfare of the organization, I would recommend allowing Mimi to defend her position in order to minimize bias and assumption. Two questions could be asked of Mimi that may allow her to mitigate concerns stemming from the search: 1) Regardless of any past pretenses, do you feel that you can represent this company appropriately if faced with issues regarding international politics? 2) Do you have any concerns about operating effectively within a political environment, such as China? Asking these questions, however, assume that the legal ramifications have been assessed and that they have been deemed appropriate for these particular circumstances. Ultimately, however, the decision lies with Fred to formulate a team that he feels can further the goals of the organization. He may consider the search results inconsequential and hire Mimi regardless of these findings, which would also be appropriate.

References

Coutu, D. (2007). We Googled you. Harvard Business Review, 85(6), 37-41.

Fallon, L. F. & McConnell, C. R. (2007). Human resource management in health care: principles and practice. Sudbury, MA: Jones & Bartlett.

Jones, C. & Behling, S. (2010). Uncharted waters: Using social networks in hiring decisions. Issues in Information Systems, 11(1), 589-595.

Rosen, L. (2009, September 15). Caution! – Using search engines, MySpace or Facebook for hiring decisions may be hazardous to your business. Retrieved from http://www.esrcheck.com/articles/Caution-Using-Search-Engines-MySpace-or-Facebook-for-Hiring-Decisions-May-Be-Hazardous-to-Your-Business.php

Human Resource Management, Part 2

“Didn’t Cut It? Hire Another”

Human resource management (HRM), especially when considering employment contracts, is heavily reliant on the understanding of the laws and regulations governing the jurisdiction of practice, whether these laws and regulations are local, state, or federally mandated. Fallon and McConnell (2007) demonstrate that “many laws and other legal requirements exert considerable influence on the employment process …. [and,] managers must [also] be aware of many aspects and nuances of HR law….” (p. 127). Kathy Gray’s difficulty, as described in the Fallon and McConnell chapter seven case study, arises from a culture within the organization that does not appear to respect the utility of HRM as both necessary and effective for the business. In the scenario, Kathy Gray is tasked with hiring a clerk for an open position; however, as soon as she makes her determination of the candidates, Sam Weston undermines the authority bestowed upon her and hires the lesser qualified of the two applicants. This would be difficult for anyone in a similar situation.

There are a number of problems that could stem from this scenario. First, by hiring the less qualified candidate, the business will utilize resources in training the chosen candidate only to seek out a replacement before recouping the expenses related to hiring and training the individual. O’Brien (2010) describes “the process of recruiting, selecting, hiring, and retaining employees [to be] difficult and costly” (p. 113). It would seem obvious that the chosen candidate should be the most qualified to save both cost and effort. Second, by Sam Weston undermining Kathy Gray’s authority, he has made her less effective as a leader. Kathy Gray was hired as a business manager and must earn the respect of those within the organization that she leads. By undermining her hiring authority, Sam Weston creates the perception that she is not prepared in her role as a manager. Fallon and McConnell (2007) posit that Sam Weston should have merely prepared himself to be a resource for Kathy Gray had she met difficulty in carrying out her newfound responsibilities. I have to agree as this would have allowed Kathy Gray to develop confidence in her new role, and a clear message would be sent throughout the organization regarding Kathy Gray’s authority in matters pertaining to her office. Although Sam Weston did choose an inept candidate, I do not see any reason why Kathy Gray cannot terminate the employment of her subordinate herself, as is the organizational norm. That being stated, there are better methods of dealing with employment matters than ad hoc hiring and firing of personnel by managers (Fallon & McConnell, 2007; O’Brien, 2010).

Fallon and McConnell (2007) and O’Brien (2010) both agree that HRM is a systematic approach to employment matters with ethical and legal considerations and implications. Meadows Nursing Home, the organization discussed in Fallon and McConnell’s case study, would do well to employ a human resources specialist (if not a human resources department) to handle the vetting of applicants, from within the organization as well as without. By developing a working partnership with the human resource team, managers can be assured that chosen applicants have met the minimum requirements for job performance, that job descriptions are accurate and detailed, and that, in the event an employee must be separated from employment, it will be handled in a professional, legal, and proper manner.

Finally, consideration should always be given to applicants within the organization before looking outward to fill vacancies. Employing from within demonstrates to the current staff a culture and willingness to cultivate talent and allow professional growth as a reward for loyalty. Also, current staff are already familiar with the business processes that an outsider may find atypical, and this would lead to short assimilation time; however, the organization runs the risk of “organizational in-breeding” if not enough outside influence is achieved (Eisenberg & Wells, 2000). With this in mind, promotions from within should be the norm unless considering vacant management positions, which should be advertised both within and outside of the organization in order to ensure competition among the candidates.

References

Eisenberg, T. & Wells, M. T. (2000). Inbreeding in law school hiring: Assessing the performance of faculty hired from within. Journal of Legal Studies, 29(S1), 369-388. doi:10.1086/468077

Fallon, L. F. & McConnell, C. R. (2007). Department managers and the recruiting process. In Human resource management in health care: principles and practice (pp. 125-145). Sudbury, MA: Jones and Bartlett.

O’Brien, J. A. (2010). Recruit and hire the best fit for your practice. The Journal of Medical Practice Management, 26(2), 113–118.

Human Resource Management

Mrs. Jackson’s Dilemma

In the dilemma of Mrs. Clara Jackson, as presented by Fallon and McConnell (2007), the emergence of health care professions created a vacuum of administrative roles that, until this time, were haphazardly fulfilled by senior clinical staff. Mrs. Jackson, professionally torn between clinical and adminstrative roles, understood that one would suffer for the attention spent on the other. As this realization set in, Mrs. Jackson allowed non-clinical supervisors to hire employees; however, this tended to decentralize the function of personnel management. This ad hoc methodology would eventually prove detrimental as regulations and legal requirements become standard. Mrs. Jackson could enlist an assistant to help with these administartive roles, but an unprepared assistant would prove as detrimental as the decentralized process previously discussed.

Caldwell, Troung, Linh, and Tuan (2011) show that “reframing an organization’s internal environment [by implementing strategic human resource functions] results in significantly higher organizational outcomes and financial performance that is superior to what firms can attain by implementing individual human resource program elements piecemeal” (p. 172); therefore, reorganizing and restructuring the processes used to handle these administrative personnel issues would benefit the hospital better than the ad hoc use of senior clinical personnel, such as Mrs. Jackson (Fallon & McConnell, 2007), especially with workforce legislation circa 1930 (e.g. workmen’s compensation, Social Security, collective bargaining).

These issues, requiring a sense of increasing specialization and knowledge, helped to form the field of human resource management (HRM) as we understand it today. HRM strives to use a form of “ethical stewardship[,] … a philosophy of leadership and governance that optimizes long-term wealth creation and that honors duties owed to all stakeholders” (Caldwell, Troung, Linh, & Tuan, 2011, 178), to “help their organizations add value to the lives of individuals and organizations” (Caldwell, Troung, Linh, & Tuan, 2011, p. 177). This philosophy helps to gain “commitment from employees which is the key to long-term wealth creation” (Caldwell, Troung, Linh, & Tuan, 2011, 178). Using this philosophy of ethical stewardship, HRM managers would have enlisted the help of Mrs. Jackson to formulate a list of requisite knowledge, skills, and abilities (KSAs) needed to perform each clinical job and hire nurses based on these, while meeting the requirements of employment law and regulation, so as to free Mrs. Jackson to perform her senior clinical role unimpeded.

References

Caldwell, C., Truong, D. X., Linh, P. T., & Tuan, A. (2011). Strategic human resource management as ethical stewardship. Journal of Business Ethics, 98(1), 171–182. doi:10.1007/s10551-010-0541-y

Fallon, L. F. & McConnell, C. R. (2007). Human resource management in health care: principles and practice. Sudbury, MA: Jones and Bartlett.