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At Google, the Proof Is in the People
The Optimas Awards General Excellence winner is a rarity: a profitable Internet business. The young founders' people practices are aimed at attracting and keeping an unbeatable team.
By Todd Raphael
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General
Excellence
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nly five years ago, Larry Page
and Sergey Brin were college buddies at
Stanford, graduate student computer geeks who started an Internet business not
far from campus in a friend’s house in Menlo Park. The garage served as
executive headquarters. Benefits included free use of a washer and dryer, a
shower, and a refrigerator. The young entrepreneurs plugged in a toaster oven,
installed a cache of candy and snacks, and set about orchestrating a business
triumph.
Today they are masters of cyberspace. Their brainchild, Google, has morphed
into a vast and powerful multimillion- dollar Internet search engine with three
billion Web addresses. The young businessmen, now 29 and 30, respectively, have
become rich, sought-after celebrities who appear on prime-time news programs,
maintain high academic credentials, and participate in power events such as the
World Economic Forum held earlier this year in Switzerland. Page, the son of a
Michigan State University computer science professor, last year was named a "Young Innovator Who Will Create the Future" by MIT’s Technology Review magazine.
Their Menlo Park friend and former landlady, Susan Wojcicki, is now director
of product management and a major player in charge of managing relationships
with companies such as Yahoo that use Google’s search mechanism. The mother of
two small children, she enjoys Google’s many excellent employee benefits,
including three months of maternity leave paid at 75 percent of salary and two
weeks of paid paternity leave. During the first week after the babies were born,
free meals were delivered to her home. Larry and Sergey--as employees call
them--replicated the culture of the company’s informal infancy, figuring that
the better they handled workforce management, the better the business would be.
There’s still an employee washer and dryer, and a shower. Candy and snacks
continue to be staples.
Google is now headquartered in more corporate-looking digs in
neighboring Mountain View, in the hub of Silicon Valley. But Page and Brin, a
native of Moscow, have retained their garage office values. The results are
mind-boggling. In 2001, Google had about 200 employees. Last year, it added 500.
As many as 20 contractors are required just to review the 1,000 résumés that
arrive daily. The company may double in size this year, again.
To make the operation work, Page and Brin are directly involved in human
resources issues. Every Wednesday afternoon, for example, the duo meets with
human resources director Stacy Sullivan and other executives to talk about
recruiting concerns, and address questions such as: Are candidates having to go
through too many interviews? Is the process taking too long for the candidate?
The founders also come up with recruiting ideas--some off-the-wall. At a
recent meeting, for example, Brin suggested skipping candidate interviews
entirely and trying to hire people solely on the basis of their résumés. (The
idea is still under consideration.) Throughout the week, hiring managers look
for "fit," a process that has resulted in a 95 percent acceptance rate and
about 4 percent turnover.
At Google, formality and convention aren’t the corporate values. When a job
applicant shows up for an interview, he could, for example, elect to sit in a
chair or perhaps sink into a beanbag. The latter is what a Google kind of person
would do. The company wants people who are flexible enough to adjust to big
changes on the job. When a hiring manager listens to a candidate, she’s trying
to see if the person is thinking more about the team or more about himself.
Google wants employees who can play ideas off others. Sullivan and her 10-person
human resources team keep in touch with more than 300 professors nationwide,
making sure Google knows who their best students are.
"Larry and Sergey are sometimes more interested in the people here than the product."
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What’s fascinating about Google’s intense focus on workforce management
is not that Page and Brin have bought into the idea that happy, high-performing
employees will result in a good product. They have sold this idea; it is their
passion. One employee says, off the record, "Larry and Sergey are sometimes more interested in the people here than the product." Last summer, when the
company was looking for a receptionist, Brin interviewed finalists himself.
Page, Brin, and Sullivan have made it their business to find out what employees
at other companies don’t like about their benefits. Then, they don’t offer
those things.
At Google, 401(k) and health benefits begin as soon as an employee reports
for work. New hires begin with three weeks’vacation during the first year.
There are no sick days at Google; when you’re sick, you simply stay home. Two
days a week, a physician is available on site. The pièce de résistance is
this: Breakfast, lunch, and dinner are free.
After seeing a recent 60 Minutes TV segment on benefits-rich SAS Institute,
Page and Brin went to Sullivan’s team and said, "We’ve got to add benefits." They’d like an expanded medical facility on site, as well as a
day-care center, a preschool, and social workers.
It’s about creativity
It’s not just the free tortellini in the cafeteria that causes top Ph.D.
candidates to leave school and work for Google. Page and Brin want top
performers to come to Google because making sense out of billions of Web
addresses is compelling and challenging.
Lucas Pereira, a software engineer, was four and a half years into a Stanford
Ph.D. program in computer graphics when he went to work at Google in 2000. He
put his studies on hold--probably forever. "In school you put a lot of work into getting the footnotes right, and how many people really, truly care?" he
asks. "Here you launch a site feature and there are 50 news articles about it the next day." Pereira says that the people at the company are much like
graduate students, which in fact they are. Dozens of Stanford alumni work at
Google.
Every Friday afternoon, the founders gather all employees into an open area
for a TGIF meeting. Brin and Page talk about new product launches, advertising
victories, and scuttlebutt about competitors. Schmidt and the company’s senior
management also share financial data. Google’s sales, which include text-based
ads at the top of search-results pages, brought the company to profitability in
2001. Hoover’s estimates that Google did about $100 million in sales in 2002.
Google now has locations in France, Germany, Holland, Australia, Italy, and
Japan. The founders are trying to duplicate as much of the company’s unique
culture and benefits as possible as the company expands in size and geography.
Wojcicki says that Google’s cultural trademarks are illustrations of its
values. That’s why it provides 30 different kinds of cereal in the office and
everchanging cubicle configurations. "It’s about creativity, enabling people to be creative about their jobs," she says. "It’s not a culture about standardization."
Workforce, March 2003, pp. 50-51 -- Subscribe Now!
Todd Raphael is online editor for Workforce Management. E-mail raphaelt@workforce.com to comment.
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