Geico: Total Rewards Program
Total Rewards- HRM533
Dr. David Fountaine
April 26, 2014
This paper will look at the Geico total rewards program to see which parts align with the top five advantages of the total rewards program outlined in the text, The WorldatWork handbook of compensation, benefits and total rewards. A strategy will then be created to ensure that the Geico plan addresses all of the advantages. Looking at the effectiveness of Geico’s communication of their total rewards program, we will make two recommendations for improvement. Finally, we will assume that the Geico employees are unhappy with the current plan, and will offer two changes to ...view middle of the document...
By offering these paid leaves they are allowing employee’s flexibility with their schedule, which in turn will keep the employee happy.
Recruitment and retention are a large issue that companies are facing; they are having a hard time finding top performers, skilled IT workers, and workers for entry level positions. It is important for a company to find quality, skilled workers who will stick with them for the long haul; which means on the companies end they must provide a competitive total rewards program that supports a work-life balance for the employee. Geico provides a competitive total rewards program through their health benefits which are offered for the family, an associate assistance program, long term disability and physical fitness assistance. They also offer education and training to help further educate their employees, which they can be reimbursed for and also receive additional bonuses upon completion. Employees can invest in the 401k program and also purchase stock options. Finally, the employees are given paid time off, along with the company supporting their work-life balance. Through all of these areas Geico is able to recruit quality candidates and retain them.
Reduced labor costs/cost of turnover; this is often times invisible and far from cheap for organizations (WorldatWork, 2007). Geico is able to reduce their labor costs and cost of turnover by offering a competitive total rewards program to their employees. They offer health benefits, paid time off, education reimbursement, education and training programs, 401k options, work-life balance; with all of these features available to employees it helps Geico to retain their employees which in turn helps to keep their turnover cost down. Employers can no longer afford to simply view their employees as interchangeable parts, if people can find an environment that’s more in sync with their needs, then they will stay put as they feel their needs are being met (WorldatWork, 2007). Having heightened visibility in a tight labor market is important to an employer, because they see what employee’s value and mix that with matching rewards so they can reallocate their investment dollars to match what employees see as important. Geico does this by understanding that employees value their families, so they offer FSA’s, adoption assistance, long-term care plans, and associate assistance programs.
The challenge is to develop and implement a flexible program that capitalizes on this diverse workforce. Valuing each employee means understanding that everyone does not want to work the same way or be rewarded the same way (WorldatWork, 2007). This is why enhanced profitability is an important part of the total rewards plan. Geico offers training and development for employees to help further their career path, which in turn offers the opportunity for them to make more money as they grow within the company. They also offer a vast health benefits package and retirement...