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 of it and place employees in the right position. In most cases the more you pay the better output comes from employees. In order for performance to be managed correctly, the staff has to be well trained in their fields. This helps identify those that need training, different ways to improve production, and provide the organization with a way gauge the pay rates for their skill set. If these two strategies are followed this would save GEICO money, create a smooth working environment, and provide employees that are not the most skilled with something to strive for.
Evaluate the effectiveness of the communication of GEICO’s total rewards program based upon the Website’s descriptions of the benefits. Recommend two (2) areas for improvement.
One of the two changes that I would make at GEICO is in the rewards program. When looking online in their press release section most of the recognition goes to those in management. I have not held a position in the civilian world, but being in the military I do know that enlisted personnel are the ones that make things go and I am pretty sure that is how things work in the civilian sector too. In the civilian sector I see corporate like the officers of the military and those that’s not in corporate like the enlisted. Instead of just focusing on recognizing those in management GEICO should ensure that show recognition to those that do the dirty work and make things go.
The second change that I would make in GEICO’s total rewards program is in benefits. I have chosen this benefit because of health care and the cost of it. I would base the health care packages on cost and the needs of the employees. I would find out what benefits mean the most to employees and give the employees choices of benefits that work for them. I would do this as a trail to see if it worked and to see if it saved both the employee and the company in the long run.
Assuming employees are unhappy with the current plan, offer two (2) improvements or changes to GEICO’s total rewards program.
The first change that I would make to help improve the total rewards program is to try and save employees as much as possible. I would tackle this benefit because the cost of health care is forever on the rise and if done it would be one way to increase the quality of life of my employees. I figure If I can increase the quality of life of my employee this will also increase their satisfaction with the company and in turn increase they will be more committed to the company and be more productive. I would also see if employees would like to work 32 hours a week instead of 40 and keep full benefits to offset health care cost.
The next change that I would recommend is the ability to work from home. I have chosen this improvement because of the price of gas and its ability to create a better work life balance. I think this would be a great program because it will cut the cost for employees and it will also give them to better opportunities to attend to personal things. I am currently in a position where I am able to work from home and I love it because I currently live 20 miles away from my work place and with rising gas prices I am able to cut back on cost. This recommendation also comes from me because it works well when my daughter comes into town for the holidays, spring break, and summer vacation.
Even though organizations have rewards programs in place and want to meet every employee’s needs, I think that it something that is almost impossible because everyone doesn’t have the same need. However, I think that an organization can make up for rewards programs just by showing employees that you are working for them just as they are working for you. In most cases I think it’s not always about money but by just showing employees that you recognize the work that they are doing.