Total Rewards
Assignment 1
Geico Total Rewards Program Case Study
Advantages to a Total Rewards Approach 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: The first facet is “Health and Well-Being”. Geico offers a variety of medical plans to their employees such as PPO’s, HMO’s, dental, and vision. Geico offers three free sessions from their employee assistance program and basic long-term disability insurance which is paid for after three years of employment. Premium long-term disability insurance is available at an additional cost. Many Geico facilities offer on-site fitness centers, athletic programs, and local gym membership discounts. This facet is aligned with increased flexibility advantage of a total rewards approach. The second facet is “Education and Training” which is aligned with the “Improved Recruitment and Retention” total rewards approach. The dynamic of this approach focuses on organizations obtaining and retaining employees by implementing a total rewards strategy that would address these issues. Geico’s “Education and Training” total reward facade offers paid training in sales, customer service, claims, and auto damage. Employees participate in Geico’s Insurance Studies Program Sales to prep for state licensing and underwriting exams. Geico offers tuition reimbursement for full-time employees towards their undergraduate education. Geico University promotes continuous growth and development for their employees by offering e-learning and instructor led courses in various subjects. Geico’s internal job board and promote from within corporate culture increases the value of the “Education and Training” facet. The third facet is “Finance and Retirement” which is aligned with the “Reduced Labor Costs/Cost of Turnover” total
Geico Total Rewards Program Case Study
Advantages to a Total Rewards Approach 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: The first facet is “Health and Well-Being”. Geico offers a variety of medical plans to their employees such as PPO’s, HMO’s, dental, and vision. Geico offers three free sessions from their employee assistance program and basic long-term disability insurance which is paid for after three years of employment. Premium long-term disability insurance is available at an additional cost. Many Geico facilities offer on-site fitness centers, athletic programs, and local gym membership discounts. This facet is aligned with increased flexibility advantage of a total rewards approach. The second facet is “Education and Training” which is aligned with the “Improved Recruitment and Retention” total rewards approach. The dynamic of this approach focuses on organizations obtaining and retaining employees by implementing a total rewards strategy that would address these issues. Geico’s “Education and Training” total reward facade offers paid training in sales, customer service, claims, and auto damage. Employees participate in Geico’s Insurance Studies Program Sales to prep for state licensing and underwriting exams. Geico offers tuition reimbursement for full-time employees towards their undergraduate education. Geico University promotes continuous growth and development for their employees by offering e-learning and instructor led courses in various subjects. Geico’s internal job board and promote from within corporate culture increases the value of the “Education and Training” facet. The third facet is “Finance and Retirement” which is aligned with the “Reduced Labor Costs/Cost of Turnover” total
References: Kaplan, S. L. (2007). Business Strategy, People Strategy and Total Rewards. Benefits & Compensation Digest, 44(9), 1-19. Phoenix, T. (2006). Rewards Transformation: Understanding the Internal Total Rewards Marketplace. Benefits & Compensation Digest, 43(9), 1-14. Sammer, J. (2007). Tell Them About It. HR Magazine, 52(11), 73-76. Thurston, L. D. (2006). Focus on total employee rewards and effective communications key to corporate success. Caribbean Business, 34(50), 31. Wilkinson, A. (2007). Defining a Now Era of Benefits. Employee Benefits, 3-4. WorldatWork. (2007). The WorldatWork handbook of compensation, benefits, & total rewards. Hoboken, NJ: John Wiley & Sons.