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Geico Case Study
Facets of the Geico total rewards program align with the five (5) top advantages of total rewards
GEICO is the largest automobile insurance corporation operating in over fifty American states. As a government owned insurance firm, it is registered on the New York Stock Exchange. It operates in numerous areas of the automobile business operations. The company is managed by a semi-private firm, Berkshire Hathaway, which manages the activities of the numerous subsidiary companies.
The management has designed new strategies and policies. It also ensures the implementation in order to compete against competitors and to maintain its market share. The organization's prime objective was to maintain its reward system as employee performance is directly linked to appraisal they get from the organization. After a thorough review of GEICO's website, the first facet, which stood out was that with the economic issues in the United States, the company never had a decline in its workforce (WorldatWork, 2007). This demonstrates that this is an organization, which values its employees. Its total rewards program is founded on a competitiveness and compensation. It relates to other firms in the same industry such as State Firm and All State. GEICO pays its workers based on their skill and experience level. All positions from entry to executive levels are well compensated. This is due to the value they put on their workers and competitor's pay rates (Panitz, 2009).
The second facet of the total rewards program is work life. This element of the total rewards program is composed of programs, practices, philosophy, and policies that support efforts to help achieve success at home and work, which is fundamental to those that have families. The company supports its workers by being ready to support them when they are not able to work. With the workers being aware that GEICO is ready for the absence of workers, it shows the focus that the company has on the work (Panitz, 2009).
Recognition and Performance relate to the acknowledgment, giving attention and acknowledging employees because of the actions, work, effort, and behavior. This is the third facet of the total rewards program. GEICO ensures high moral in the workplace by recognizing or rewarding its workers for doing a great job. When it gives its workers awards and recognition, it ensures openness for the workers to see as they are placed on the company's website. The fourth facet of GEICO's total rewards program relates to benefits and amenities. This helps in maintaining the quality of life for workers (Gross & Friedman, 2004). Through merit-based promotions, competitive salaries and company profit sharing awards, GEICO's employees can build wealth, which will help them secure a promising financial future. Drawing from GEICO's total rewards program, it has four types of benefits including legal facilities, retirement, health and welfare, as well as time not worked.
The fifth and final facet is time and leave facilities. It incorporates various categories including financial support, culture change initiative, and community involvement and caring for dependence (Koppes, 2008). This is aligned with reduced costs of turnover and labor costs. It is more about how employees spend their time working and relaxing. GEICO recognizes that its employees are its fuel for its growth. Through providing time and leave facilities, GEICO shows that it values its employees and the talent they bring to the organization (Panitz, 2009). All these are directed at supporting the employees' work life effectiveness.
Advantages of total reward program and GEICO reward program
Companies develop reward system program because they seek to offer special benefits to workers that have assumed a key role in the growth of the companies. After the continuous devotion and focus, employees accept to be appraised and recognized by the head of the company. From top to the bottom layer, a company's workforce accepts to increase in the pay scale, growth, flexible work schedule, respect and great working environment (WorldatWork, 2007). An effective total reward program gives five major advantages to GEICO's employees. They include an improving retention program, an increase in flexibility of work, a reduction in labor costs, enhanced profitability, and labor visibility. Therefore, GEICO has created its total rewards program based on prime reward principles and ensures that each of its reward categories provides five major advantages to the workers. After a close analysis of the company's reward structure, its well being and health category of reward is consistent with the five basic advantages of the total reward system.
A strategy for ensuring that the Geico plan addresses all of the advantages
The first plan for the strategy will be to consolidate a team from various departments of GEICO to generate ideas from workers, which will interest them. The group representatives will have a meeting with the members of the company after collecting the ideas. They will analyze the ideas that can be implemented within the organization without generating a high financial strain (Gross & Friedman, 2004).
The second step of the plan will be to collect information from other firms to evaluate the factors that enhanced their programs. This will be accompanied by a comparison of those ideas with the ideas, which members of the group have already been implemented in the workplace.
Finally, it will be appropriate to call a consultant specializing in consolidating the total rewards programs. This expert will assist to put the program together for GEICO and provide new information to the employees (Panitz, 2009).
The effectiveness of the communication of Geico's total rewards program
GEICO has made significant investments in effectively managing its total rewards program. Because it invests significantly in and sees the value of total rewards programs, GEICO has reported successful results due to effective implementation.
Drawing from its website, it uses its total rewards programs to recruit and retains talented employees. It engages and motivates these employees, which yields the highest levels of performance. GEICO has properly designed, delivered, and aligned its rewards program (Koppes, 2008). This has triggered a positive impact on organizational performance and individual engagement. In addition, the company has embraced the necessary steps to achieve these desired outcomes. An analysis of GEICO's website reveals that the company continues to report high levels of employee engagement, innovation, and revenue due to its total reward systems. The differentiation factor between GEICO's high performance and its competitors' is not about the rewards programs they concentrate. It relates to the implementation of the programs.
The two areas of improvement are outlined below;
Aligning customer value and employee propositions. Arranging the CVP and EVP will enable the workers to grasp their role clearly. This eventually ensures that the services and products are differentiated and delivered to the customer's premise. GEICO should take the core of its CVP and develop a differentiated EVP, which attracts and retains employees with hot skills in the fiercely competitive market. The company may sponsor a company survey to evaluate how desirable and familiar its brand is among corporate users (Hiles, 2009). This will uncover robust insights about end users' opinions on GEICO's CVP attributes. GEICO will be easily recognizable across the industry as an employer due to its stimulating and challenging work atmosphere. The company has abundant opportunities for employee development. This tie will be consistent with GEICO's brand image in the market.
Integrate a differentiate EVP into the communication of Geico's total rewards program. The management should effectively position its EVP with a propelling message around its total rewards programs. This will help attract and retain the best talent while differentiating the company from its competitors. The company will be successful at appreciating the full value of its total rewards program due to its adequate branding and differentiation of its total rewards program in the market place (Ellig, 2007).
GEICO must enhance the effectiveness of its total rewards message to workers by communicating…[continue]
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