Article: The Happiness Machine

Some great nuggets of insight in this piece about Google's POPS team (POPS stands as a shortcut for People Operations).

On the optimal number of interviews for prospective hires:

After crunching the data, Carlisle found that the optimal interview rate—the number of interviews after which the candidate’s average score would converge on his final score—was four. “After four interviews,” Carlisle says, “you get diminishing returns.” Presented with this data, Google’s army of engineers was convinced. Interview times shrunk, and Google’s hiring sped up.

On the bonus vs raise debate:

The group ran a “conjoint survey” in which it asked employees to choose the best among many competing pay options. For instance, would you rather have $1,000 more in salary or $2,000 as a bonus?

“What we found was that they valued base pay above all,” Setty says. “When we offered a bonus of X, they valued that at what it costs us. But if you give someone a dollar in base pay, they value it at more than a dollar because of the long-term certainty.”

Google has taken a scientific approach to employee happiness. It's worth it.