Using a foreign based outsourcing firm, Google falls short of promise to hire 1,000 Michigan based employees

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Back in 2006, at the beginning of Michigan unemployment crisis, Search engine giant Google Inc. received a $38.25 million dollar tax credit from Michigan Economic Development Corp.’s Michigan Economic Growth Authority (MEGA) board, with the promise of hiring 1,0000 employees at its’ sales headquarters in Ann Arbor, Michigan.


Since this point its’ estimated at best, Google has hired 250 employees directly. 


On September 13th, a Ann Arbor.com report has disclosed that Google for sometime has been outsourcing jobs at the companies Ann Arbor sales location headquarters, to a Bermuda-based operation named GenPact.


The report notes GenPact contractors are working side-by-side with Google corporate employees, conducting sales related functions for the AdWords side of their business portfolio. 


January 2011, in response to loud voices among local and state based Michigan critics about how many employees Google hired since 2006, versus large tax break received; the company announced it would accelerate hiring at its Michigan offices and planned to hire 6,000 workers during the year. 


Up to that point Michigan based job seekers, who applied with Google, reported going though months of interviews, then receiving a reply from company recruiters that the job isfrozenor the applicant never hears anything else, at all.

“Google has interviewed you me many times over and does the same thing every time”, a job seeker from Detroit, Michigan stated on the Indeed.com forums. “They tell me that I have all the skills they need, have me go through multiple phone interviews, and then never call me back. I do not take calls from them anymore.”

Google made no mention that some of the newly hired employees would be outsourced hires made by a foreign based firm; starting at lower wages than agreed upon within the MEGA Tax Credit package. 


This isn’t the first time that Google has used contractors, instead of hiring employees to work in Michigan for the corporation.


Reach Out Job Search News from January 26th report on Google’s promise to hire 6,000 employees, job seeker K. Watkins of Southeastern Michigan worked as book scanner for 90 days, though a outsourcing company on behalf of Google in 2009.

“One of the biggest inside jokes in the area is running into someone that actually works for Google”, Watkins stated. “I mean, really works for Google. They rarely if ever hire the temps that do the book scanning and its’ close to impossible to get into the company permanently.

A recently removed employment posting by GenPact, cited in the report, desired a “Customer Support Specialist” to conduct sales for a leading internet search provider in Ann Arbor, Michigan, on a full time basis with wages starting between $12-$12.50 per hour.


At the hourly rate, a GenPact worker would receive up to $500 a week, or $26,000 a year. Google’s MEGA tax credit was based on an average salary of $913 a week, or $47,476 a year. Subcontracted employees being paid $500 a week wouldn’t apply to meet Google’s criteria to qualify for MEGA tax relief, according to the state based organization policies.


A GenPact spokeswoman declined to address the news resource questions or confirm the relationship with Google.

“Unfortunately GenPact cannot reference any of our clients,” GenPact spokeswoman Barbara Tate said to Ann Arbor.com.

Additionally, a spokesperson from Google declined to confirm any relationship with the foreign based company, GenPact. Still the spokesperson did acknowledge that Google sometimes uses contractors.

“Google (company-wide) has both full-time employees and dozens of contractors providing phone support to our advertisers,” the spokesman said.

“Hiring contract employees is standard practice for Google across the country and in Michigan, where some of them are based. We work with a wide range of vendors of all sorts and as a matter of business, we do not comment on those relationships,” they noted.

Companies, such as Google, have no legal obligation according to state tax laws, to follow the promises they made when they received MEGA tax credits. 


Under Gov. Rick Snyder (R), the MEGA Tax Credit program was eliminated to provide $1.5 billion dollars worth of tax cuts to large C & S based corporations, similar to Google, who now aren’t require to disclose if their “employees” are Michigan or foreign based citizens.

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