Total Reward Framework - Assignment Example

Case Study: GEICO- Total Rewards Approach

For better service delivery to its target clients, GEICO (Government Employees Insurance Company) has five programs that stand out and effectively cater for the well-being of their employees. The programs such as AAP (Associate assistance program), health and wellbeing which provides for an individual’s health’s and medical services (GEICO, n.d). Subsequently, GEICO has a financial and retirement plan for its employees. This package assists the employees to plan ahead adequately when approaching their retirement age. GEICO does this by offering its employees investment opportunities that include the traditional and Roth 401K plans, accident insurance, profit-sharing plan life insurance and the matching gifts program. In its service, GEICO also offers Time Off and Leave program which includes paid vacations and trips, sick days among other benefits. Family and life program are also a part of their total reward program which is offered in accordance to FSA. From the Time off and Leave program GEICO acknowledges that there is a need to award its employees some time off which will help them relax and also enhance their work-life experience (WorldatWork, 2007).  

Advantages of a Total Rewards Approach

Through their total reward program, GEICO can offer an improved package and retain its workers as highlighted in Chapter 2 of the textbook. They offer benefits that help secure the future of their employees. It can, therefore, be noted that the organization takes into consideration the wellbeing of its employee and thus the reason for offering a comprehensive package. GEICO supports the life of its workers by providing incentives as a key feature of the total rewards program; these are programs employed by employers to complement the compensations awarded to the employees. As stated by Rudy (2007), the savings, income protection and the finance and retirement programs give security the employees and their families.

Another benefit associated with GEICO is the scale at which it compensates its staff as compared to its peers. The company offers a completive pay package that attracts qualified workers who perceive to have a secure future if they work for GEICO. For a company to offer total rewards, it means that it has adequate measures put in place to cushion its employees from the constant changes in economic conditions. GEICO caters for their employee’s compensation with regards to their experience and qualification. The package not only caters for the employees but also assists in the management of the company’s budget.

Total reward framework is also meant to bolster the career development and opportunities for the workers. As it is the goal of every company, profit maximization is a top priority, but there is also need to take the welfare of the environment (staff, community) into consideration. In order to maintain career development, the corporation deploys their employees to departments which they are comfortable with as well as able to handle effectively the roles assigned to the position so as to achieve their full potential (Ruddy, 2007). GEICO are acknowledging the significance of career development and places more emphasis on education and training for the employees to be equipped with new advanced and efficient methods of operation. GEICO intends to keep its promise by producing the best service alongside it experienced staff. The company offers training courses that help polish and equip the employees while at the same time improving its service delivery.

As a feature of the total reward program, companies need to cater for the work life of its employees. There should be programs and policies put in place that will support the company’s workforce in accomplishing their goals and that of the enterprise. This feature is also essential to employees who have families and responsibilities to cater for and also for those intending to bring up a family. In accordance with their total reward policy, GEICO grants time off and leaves to any employee that needs some time off whether, be it for academic reason, health concerns or personal reason. This assures the employee that they have the support of the company in a time of need.

Additionally, companies need to acknowledge and recognize the performance of its employees. According to Rudy (2007), performance can be used as a measure of success by the company and can also determine the progress of the corporation and what needs to be done. Employees feel enlightened when their input into the company does not go unnoticed hence motivating them to put more effort in their work. It is in the culture of GEICO to honor and appraise its employees on a job is well done stirring their confidence. These praises can be placed on the company’s website so that it can be viewed by interested parties and also acts as a challenge which encourages a healthy competition within the organization.

Total Rewards Strategy

To address these advantages, GEICO will need a well-planned strategy which will also need to focus on the company’s overall objectives. The corporation can commence with the harmonization of the employees and their skill for them to align with the organizational goals. Silzer and Dowell (2010), point out that it is important for the employees to be incorporated in decision-making since they are the ones who will drive the company to profitability hence the need for providing them with a comfortable and enjoyable working environment. Contented employees create conducive working conditions and tend to be loyal to the organization as compared to those whose needs are not met. It is important for the management to monitor the performance of the employees since they would not want the total reward program to be compromised and it is also essential that the services provided match the awarded compensation. Good work should always be appreciated since additional incentives motivate the performance of a worker.

GEICO also needs to take into considerations the demographics of its workforce for they can have a significant effect on the type of total reward offered. Older workforce differs from a younger workforce in terms of needs such as education, parenting among others. Similarly, gender has a significant impact on the total reward of the company. Workforce comprising of female workers as the majority will focus more on flexibility related policies as compared to the labor force dominated by male. It is impossible for an organization to have a single type of workforce due to diversification. These packages need to be a mixture of relational and transactional reward hence the need for GEICO to adjust their total reward program so that it can cater to the needs of each generation.

Relational rewards are concerned with the emotional relationship existing between the worker and the company whereas transactional rewards deal with monetary issues (Kaplan, 2007). In most cases, the relation rewards capitalize on an individual’s commitment to the company but at the same time reduces on their retention. As argued by Kaplan (2007), it can be challenging to distinguish between the benefits and compensation program offered by the different program since their packages are almost alike. However, an organization can differentiate itself from its rivals by tailoring their total rewards to meet the needs of the employees thus attracting more qualified personnel while at the same time increasing their retention rates. GEICO can use this to their advantage and enhance their visibility in the labor market.

The Communication Plan

By evaluating GEICO’s total reward basing on the information provided on their website, it is a good program for its workers. The packages appear to be balanced and addressing the various needs of the employees. However, GEICO can improve on the following recommendations: the company should improve the visibility of its total reward program. For instance, adding an online tool on their website that can say that will make it easy for the employees and potential candidates view the offered packages under their total reward program. Taking an example of the family and life model; employees will better appreciate the offers in this model and properly get informed on what is required.

The second modification needed is the regular update of their total reward plans. It is important for any company to update its total rewards plans regularly and make it available to the employees at all times for easy access when needed (Sammer, 2007). With there being constant changes in the industrial sector and the labor market such as advancement in technology with the development of new tools and equipment, GEICO will need to train its personnel and hence the need to continually revise its education and training model to meet the needs of the market.

Total Rewards Improvements

Hypothetically, most employees nowadays are contended with benefit packages offered by their companies. It can be assumed that those working in GEICO are not happy either. With the changes experienced, particularly in human resource management from the conventional method to outsourcing practices makes it a challenge for the offered services to keep at par with the transitional speed. GEICO needs to improve on their total rewards plan. The first improvement is to acquaint themselves with their employees and get to know the kind of products they want. The company can keep tabs on its employees and monitor their behavior so to determine the most preferred products.

The organization also needs to foster communication between the employees and the management team. The management needs to listen to e concerns raised by the employees in regards to the total rewards program rather than the assumption that what satisfies one satisfies all. GEICO management can use this platform to solicit the opinion of the workers on the packages and on what to add or deduct from the models.

All in all, the total reward policies implemented should ensure that the benefits frameworks offered meets goals of the organization and that the operating procedure used for total repayment complements the organizational culture. It should also complement and motivate every employee into putting their best effort when handling corporate assigned tasks.