GEICO Total Reward Program

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Zberan69

Business Finance

Description

Go to the Geico Website to read the “Total Rewards Program” at http://careers.geico.com/working_at_geico/total_rewards_program.



Write a five to seven (5-7) page paper in which you:

  1. 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.
  2. Create a strategy for ensuring that the Geico plan addresses all of the advantages.
  3. 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.
  4. Assuming employees are unhappy with the current plan, offer two (2) improvements or changes to Geico’s total rewards program.
  5. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:
  • Define total rewards and describe the advantages of a total rewards approach.
  • Analyze an organization’s strategy, workforce, operating environment, and key stakeholders to identify critical factors in designing a total rewards strategy.
  • Evaluate the elements of a total rewards communication program.
  • Use technology and information resources to research issues in total rewards.
  • Write clearly and concisely about total rewards using proper writing mechanics.

Unformatted Attachment Preview

THE TOP FIVE ADVANTAGES OF A TOTAL REWARDS APPROACH 1. Increased Flexibility With the one-size-fits-all approach essentially gone, the twenty-first century may well become the “rewards your way” era. Just as companies create niche products and services to cater to small consumer segments (micromarketing), employers need to start creating different blends of rewards packages for different workforce segments. This is particularly true in a global labor market where workforce diversity is the rule, not the exception, and when specific skills are in short supply. A total rewards approach—which combines transactional and relational awards—offers tremendous flexibility because it allows awards to be mixed and remixed to meet the different emotional and motivational needs of employees. Indeed, flexibility is a two-way street. Both employers and employees want more of it. 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. Total rewards recognizes that employees want, and in many instances demand, the ability to integrate their lifestyle and their work. 2. Improved Recruitment and Retention Organizations are facing key shortages of best-in-class workers (top performers), Information Technology (IT) workers with hot skills, and workers for entry-level, unskilled jobs. The classic initial solution to a recruitment and retention dilemma is to throw money at the problem. But because this solution is so overused, it does not offer a competitive advantage. Furthermore, it immediately raises costs. A total rewards strategy is critical to addressing the issues created by recruitment and retention. It can help create a work experience that meets the needs of employees and encourages them to contribute extra effort—developing a deal that addresses a broad range of issues and spending rewards dollars where they will be most effective in addressing workers’ shifting values. Indeed, 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. When a company helps its employees effectively run both their personal and work lives, the employees feel a stronger commitment to the organization. In addition, numerous studies show that employees look at the total rewards package when deciding whether to join or stay with an organization. An actual summary statement can be prepared for potential employees, enabling them to see the whole value of being employed by a company. As such, as highly desirable job candidates explore their options with various companies, companies with total rewards have a competitive advantage because they are able to show the “total value” of their employment packages. 3. Reduced Labor Costs/Cost of Turnover The cost of turnover—often the driver of recruitment and retention—is sometimes invisible. In reality, it’s far from cheap. Estimates of the total cost of losing a single position to turnover range from 30 percent of the yearly salary of the position for hourly employees (Cornell University) to 150 percent, as estimated by the Saratoga Institute, and independently by Hewitt Associates (Lermusiaux 2003). In addition, the cost of turnover includes indirect costs such as losses from customers and sales, as well as decreased efficiencies as productive employees leave and the remaining workers are distracted. 4. Heightened Visibility in a Tight Labor Market Talent shortages have become a chronic condition of business life, and experts agree that the tight labor market is going to get tighter. As a result, employers can no longer afford to simply view their employees as interchangeable parts. Organizations quickly are realizing that every employee matters even more when there are not enough employees to fill the available jobs. In addition, demographic shifts (e.g., the increasing number of women in the workforce) coupled with new economic forces (e.g., global competition) have changed the employment landscape, creating an unprecedented need for committed employees at a time when loyalty is low. If people can find an environment that’s more in sync with their needs, they will make changes for that. Likewise, they will stay put when they feel their needs are being met. By gaining a clear understanding of what employees value, and mixing and matching rewards within a comprehensive framework, companies can reallocate their investment dollars to match what employees say they value most, and can communicate the total package versus a patchwork of individual components. 5. Enhanced Profitability Aside from the high costs of technology, HR professionals also are saddled with escalating benefits costs and changes in health care coverage and medical protocols. Employees want a “new deal” at the same time that companies—struggling to deliver their financial targets—are readily cutting programs to trim costs. How to balance these two realities? Change the mix. A big misconception about total rewards packages is that they are more expensive. That’s because a number of companies equate the notion of rewards with “more”—more pay, more benefits, and more combinations of rewards. What companies need to realize is that by remixing their rewards in a more costeffective way, they can strengthen their programs and improve employees’ perception of value without necessarily increasing their overall investment. It’s largely a matter of real-locating dollars rather than finding more dollars. Indeed, as companies discover the power of targeted reallocation of rewards and begin promoting the total value of their programs, they are abandoning the practice of setting pay, benefits, and other budgets in isolation, without reference to broad strategic and cost objectives. As they begin understanding their true aggregate costs— often for the first time—they are in a position to measure the extent to which their expenditures are in line with, over, or under competitive practice. And they can then measure whether they’re getting a reasonable return on their overall investment. In addition, today’s workforce includes several distinct generations, each with a different perspective of the employer-employee relationship. Most employee research indicates that younger employees place a far higher priority on work environment and learning and development than on the traditional rewards components. In contrast, older workers put more emphasis on pay and benefits. All employees are concerned with health care, wealth accumulation, career development, and time off. It simply is no longer possible to create a set of rewards that is universally appealing to all employees or to address a series of complex business issues through a single set of solutions. The challenge is to develop and implement a flexible program that capitalizes on this diverse workforce. Valuing each employee includes understanding that everyone does not want to work the same way or be rewarded the same way. To achieve excellence, employers need a portfolio of total rewards plans. Running head: [SHORTENED TITLE UP TO 50 CHARACTERS] [Title Here, up to 12 Words, on One to Two Lines] [Author Name(s), First M. Last, Omit Titles and Degrees] [Institutional Affiliation(s)] Author Note [Include any grant/funding information and a complete correspondence address.] 1 [SHORTENED TITLE UP TO 50 CHARACTERS] Abstract [The abstract should be one paragraph of between 150 and 250 words. It is not indented. Section titles, such as the word Abstract above, are not considered headings so they don’t use bold heading format. Instead, use the Section Title style. This style automatically starts your section on a new page, so you don’t have to add page breaks. Note that all of the styles for this template are available on the Home tab of the ribbon, in the Styles gallery.] Keywords: [Click here to add keywords.] 2 [SHORTENED TITLE UP TO 50 CHARACTERS] 3 [Title Here, up to 12 Words, on One to Two Lines] [The body of your paper uses a half-inch first line indent and is double-spaced. APA style provides for up to five heading levels, shown in the paragraphs that follow. Note that the word Introduction should not be used as an initial heading, as it’s assumed that your paper begins with an introduction.] [Heading 1] [The first two heading levels get their own paragraph, as shown here. Headings 3, 4, and 5 are run-in headings used at the beginning of the paragraph.] [Heading 2]1 [To add a table of contents (TOC), apply the appropriate heading style to just the heading text at the start of a paragraph and it will show up in your TOC. To do this, select the text for your heading. Then, on the Home tab, in the Styles gallery, click the style you need.] [Heading 3]. [Include a period at the end of a run-in heading. Note that you can include consecutive paragraphs with their own headings, where appropriate.] [Heading 4]. [When using headings, don’t skip levels. If you need a heading 3, 4, or 5 with no text following it before the next heading, just add a period at the end of the heading and then start a new paragraph for the subheading and its text.] (Last Name, Year) [Heading 5]. [Like all sections of your paper, references start on their own page. The references page that follows is created using the Citations & Bibliography feature, available on the References tab. This feature includes a style option that formats your references for APA 6th Edition. You [SHORTENED TITLE UP TO 50 CHARACTERS] can also use this feature to add in-text citations that are linked to your source, such as those shown at the end of this paragraph and the preceding paragraph. To customize a citation, rightclick it and then click Edit Citation.] (Last Name, Year) 4 [SHORTENED TITLE UP TO 50 CHARACTERS] References Last Name, F. M. (Year). Article Title. Journal Title, Pages From - To. Last Name, F. M. (Year). Book Title. 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Explanation & Answer

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Running Head: GEICO TOTAL REWARD PROGRAM

GEICO Total Reward Program
Name
Instructor
Institutional Affiliation
Date

1

GEICO TOTAL REWARD PROGRAM

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GEICO offers a very comprehensive total reward program that focuses on all aspects of
employee work and life. The foundation of the company’s total reward program is based on the
elements that improve the employee work and comfort. It is essential to understand that a total
reward program should center most on enhancing employee wellbeing. In this regard, the welfare
of employees should be integrated with the development of an organizational total reward
program. GEICO total reward program, in essence, reflects on the aspect of employee health and
wellbeing, education and training, finance and retirement, work-life balance and time off leave
(Steinhoff & Palmatier, 2016). These are the most critical aspects of the job that increases
employee jobs satisfaction since they focus on the employee as a whole. A total reward program
thus must be comprehensive enough to offer high employee level of flexibility in the
organization at the same time ensuring the employee is satisfied with the job. The result of job
satisfaction brought about by the organizational total reward program is employee productivity
and the overall corporate success.
The top five advantages of a total reward program are that the total reward program
should increase employee level of flexibility, improve employee recruitment and retention,
reduce labor costs, heighten visibility in a tight labor market, and enhance profitability. GEICO
total reward program aligns with these advantages since of the programs key attributes focuses
on achieving these goals. Some of the GEICO total reward program that centers on the above
advantages includes the following:
Health and well-being package
Employee health and well-being total reward package for GEICO offers a variety of
benefits to the company employees. The program integrates aspects such as medical insurance an

GEICO TOTAL REWARD PROGRAM

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aspect which is highly regarded by employees. Medical insurance assures employees of a healthy
life while working for the company. This, in turn, motivates the employees to become more
engaged to the company and work towards the realization of the overall objectives of the
company (Gross & Friedman, 2004). This package aligns to the five advantages since it enhances
employee loyalty thus reducing employee turnover rates. It also provides a high level of
flexibility of the employees thus lowers employee turnover rates and improves employee
recruitment and retention.
Education and training package
Employee education and training are ways of enhancing employee knowledge and skills
that are aimed at improving employee productivity. This package aligns to the top five
advantages of a total reward program in the sense that it heightens the visibility of employees in
tight labor markets as employees can showcase their skills through training which makes them
relevant to the job market. Education and training package allows employees to become more
flexible in their job roles and enhances their level of job satisfaction which reduces employee
turnover and improves employee recruitment and retention in the bottom line (Gross &
Friedman, 2004).
Time off and leave package
Time off and leave package is one of the essential components of a total reward program
in the sense that it facilitates the work-life balance of employee. Work-life balance is a critical
aspect of job productivity since employees can maintain a high level of job satisfaction when
they are allowed time to rest time for vacation. This program typically aligns with the top five
advantages of a total reward program since it enhances employee job flexibility and enhances the

GEICO TOTAL REWARD PROGRAM

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overall organizational profitability as employees who are allowed time for leave are more
productive and are more engaged to the company. It also reduces the employee turnover costs as
employees are less likely to leave the organization whenever they are treated well and are
allowed time to rest as a result of a flexible job schedule.
Finance and Retirement Package
A total reward program should center on the future employees after retirement.
Retirement package offers employees a peaceful mind a...


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