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Geico
Geico Employees Insurance Company has been in existence since in 1936 and was founded

by Leo and Lillian Goodwin. Geico was established to provide auto insurance for governmental

employees in the entire United States. Geico was based on the idea the governmental employees

were safer and more financially dependable then the general public. With this way of thinking

Geico was able to cut out the middle man and saving the company money. Therefore, they were

able to pass these savings onto the customers, employees, and advertising.

Geico total rewards program aligns with the basic total rewards program that is

Compensation, Benefits, work-life, Performance & Recognition, and Development & Career

Opportunities. This set up was designed and implemented to mirror how the government was

operating. The way Geico was structure it developed and promoted internally. They used this

technique at Geico to develop well knowledgeable employees as well as maintain a low

employee turnover ratio. Theses principles help develop the company that people see today.

There are several advantages to using a total rewards approach to compensating the

workforce. The top five are described in the text (pp. 15-17). The following paragraphs discuss

the facets of the Geico total rewards program that align with these advantages:

Advantages to a Total Rewards Approach

The first facet when reviewing Geico’s compensation scale and comparing it to its

competitiors. Geico salaries are competitive to its completion like State Farm and All State. For

the most part Geico salaries exceed the industry. When reviewing the salaries that were posted

by position it compensated all positions well from entry level customer services representative

all the way up to their senior executives. Geico pays their employees based off of their skill level...

1. Determine which facets of the Geico total rewards program align with the five


References: Corby, S., White, G., & Stanworth, C. (2005). No news is good news? Evaluating new pay systems Gerhart, B., & Rynes, S.L. (2003). Compensation: Theory, Evidence, and Strategic Implications. Lawler, E.E. III, Mohrman, S.A., Benson, G. (2006). Organizing for High Performance: Employee Involvement, TQM, Reengineering, and Knowledge Management in the Murray, B., & Gerhart, B. (1998). An Empirical Analysis of a Skill-Based Pay Program and Plant Performance Outcomes “Total Rewards Program,” Retrieved on July 19, 2012 from http://careers.geico.com/working_ At_geico/total_rewards_program. Worldatwork, (2007). The WorldatWork Handbook of Compensation, Benefits, & Total Rewards
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