Case Study: GEICO
GEICO was founded in 1936 in San Antonio, Texas by Leo and Lillian Goodwin. “In the mid-1930s, at the height of the Great Depression, there weren't many people with the foresight and courage to start up a new company. Yet the husband and wife team were up to the challenge” (GEICO, 2011). The company was established to provide auto insurance for governmental employees in the United States. GEICO was based on the idea governmental employees were safer and more financially dependable than the general public. Under this approach, GEICO was able to cut the middle man, save the company money, and pass savings onto its customers, and employees. Though GEICO no longer limits its customer base to government employees, they continue to operate under the same basic theory with regards to taking care of its employees. This paper will examine GEICO total rewards program. 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 “Total rewards is a relatively new term coined by members of the human resources professional community and adopted by human resources associations, such as the Society for Human Resources Management and WorldatWork,” (Chron.com, 2012). GEICO’s total rewards program aligns with the standard total rewards program, which include Compensation, Benefits, Work-Life, Performance & Recognition, and Development & Career Opportunities. GEICO designed their rewards program to reflect the Federal Government’s program. The facets of their rewards program which align with the advantages of the total rewards program include Time off and Leave, Education and Development, Amenities and Perks, Family and Life, and Finance and retirement. Let us take a closer look.
The one-size-fits-all approach to total rewards was divisive and is essentially gone from today’s business environment. As the importance of flexibility has become more understood, more companies are allowing employees to determine when they work, where they work, and how they work. The facet of GEICO’s total rewards program which aligns with this advantage is their Time off and Leave program since the company realizes that much of life for its associates happens outside their office walls. There are holidays, family events, appointments and emergencies. As a result, GEICO offers a variety of leave programs so that associates can maintain a healthy work/life balance. This approach gives associates the ability to integrate their lifestyle and their work. Improved Recruitment and Retention
“Today’s workers are looking beyond the big picture in deciding where they want to work. Work and personal life should be seen as complementary priorities, not competing ones,” (WorldatWork, 2007). When a company helps its employees effectively run both their personal and work lives, the employees feel a stronger commitment to the organization. GEICO’s Family and Life program aligns with this advantage since they offer benefits such as Dependent Care FSA, which allows associates to set aside pre-tax money each year to pay for eligible dependent day care expenses. They offer Adoption Assistance, where GEICO provides up to $5,000 in assistance per adoption. Then there is the Long-term Care Insurance Plan, which allows associates to pay the same premium indefinitely once they enroll. Lastly, the Associate Assistance Program offers associates up to three phone and/or in-person counseling sessions at no cost. GEICO’s Amenities and Perks program also aligns with this advantage since they offer special benefits, discounts, and services such as fitness facilities, exercise classes, onsite cafeterias, commuter discounts, and training and educational classes through GEICO University. These amenities save their associates time and money, and help them enjoy a better quality of life, while improving recruitment and retention...