Determine which facets of the GEICO total rewards program align with the five (5) top advantages of a total rewards program outlined in Chapter 2 of the textbook and discuss your reasoning.
After reviewing GEICO’s website the first facet that stood out to me was the fact with the economic problems in the US was they had not had a decline in their workforce, which shows this is a company that values its employees. GEICO’s total rewards program is based on a compensation and competitiveness and it relates to other companies that are in the same market, like All State and State Farm. GEICO pays its employees based off their experience and skill level. Every position from entry level to executive was compensated well, because of the value they place on their employees and competitor’s pay rate.
Work-life is the second facet of the total rewards program. This part of the total rewards program are made up of practices, programs, policies and a philosophy that supports efforts to help them accomplish success at work and home, which is important to those that have families (WorldatWork, 2007). GEICO supports its employees by being prepared to support their employees when they are not able to work. With employees knowing that GEICO is prepared for the absence of employees this shows the focus that GEICO has on the work –life balance of its employees.
Acknowledgement, recognition and giving attention to employees because of the work, actions, behavior or effort is the Performance and Recognition (WorldatWork, 2007). Performance and Recognition is the third facet of the total rewards program. GEICO keeps its moral in the work place up by rewarding or recognizing its employees for doing a great job. When GEICO gives its employees recognitions or awards they are open for everyone to see because they are place on the company’s website.
The fourth facet of the total rewards program for GEICO is benefits, which helps maintain quality of life for their employees. According to WorldatWork, (2007), Benefits are platforms used by employers to offset the cash compensation that employees receive. Health insurance, savings plans, retirement and wage protection are benefits that provide security for employees and families. Health and dental, vision, short and long term disability and gym memberships are the benefits that GEICO provides to its employees after their first pay period.
The fifth facet of the total rewards program is career opportunities and development. Career Opportunities are plans and chances for employees to advance inside of an organization. When an organization supports an employee’s movement internally there is normally a plan in place to develop them so they can give their greatest value to a company (WorldatWork, 2007). Development is learning that is made to improve the employee’s skills and competencies. The development makes the employees able to perform better than before and gives them the opportunity at advancement. Education and the need for development are very valued at GEICO. Employees and family members of GEICO are able to be reimbursed up to $5,200 dollars a year for tuition, books, and fees. GEICO also has a university that employees attend for training and updates in their field (GEICO Careers, 2012).
Create a strategy for ensuring that the GEICO plan addresses all of the advantages.
In order for GEICO to set up a strategy the company has to know what the end goal is and focus on it. In order for that to be done the company has to know what skills are needed and place trained and experienced employees in the right position to add value and help create a smooth working environment. GEICO should also find out what motivates the employees they bring onboard to get the most out of them.
Risk and reward management is another part of strategy that has to be used to balance the rewards. Those in positions of authority have to know the importance of skills and the cost...