For Dr. Larry Byrd
November 2, 2014
Geico Case Study
Advantages to a Total Rewards Approach There are several advantages to using a total rewards approach to compensating the workforce. The top five are described in the text. The following paragraphs discuss the facets of the Geico total rewards program that align with these advantages: The first facet is the health and well-being. This facet aligns with the advantage of increased flexibility. Gieco demonstrates this by offering numerous options to their employees such as different medical, dental, and vision plans. Employees can choose an HMO plan as well as a PPO plan. Their dental plan gives them to flexibility to pick any dentist across the country. Their vision plan allows them to receive eye exams and a pair of glasses, or contacts. Geico offers a variety of options for their employees to stay physically fit. Many of their offices have an onsite gym for their employees or a weight loss program. If they do not have a gym, discounts on memberships are offered. The company sponsor athletic events for their employees to participate in such as volleyball, basketball, softball leagues and golf tournaments (Geico, 2014). The second facet is education and training. This facet aligns with the advantage retention and recruitment. Geico offers their employees a number of options to grow and advance. The company supply paid training for in sales, customer service, claims and auto damage. They provide tuition reimbursement for full time associates. Geico has what they call Geico University. Geico University offers online and instructor lead courses. Their classes are in subjects such as business and management courses, Six Sigma training, diversity and ethics, Microsoft Office, project management, presentation skills, business writing, statistics, etc. Geico supports promote from within. They post jobs that associates can apply for if they wish. The company offers scholarships to the children of their associates (Geico, 2014).
The third facet is time off and leave. This facet aligns with the advantage of Reduced Labor Costs/Cost of Turnover. Geico acknowledges that their employees have a life aside from their job. The company offers their employees ten days of paid vacation per year for the first five years of service, 15 days after five years, and 20 days after 15 years. In addition to the paid holidays, associates receive six paid holidays and four floating holidays each year. The company follows a similar plan for sick leave. Full-time associates accrue ten sick days per year for the first five years of service and 15 sick days per year after five years. Other leave that Geico supports are military leave. They will pay associates who are active in the military while they are on leave as their policy will allow (Geico, 2014).
The fourth facet is family life/work life balance. This facet aligns with advantage of Heightened Visibility in a Tight Labor Market. Geico tries to promote a supportive work environment. The company incorporates programs that offer adoption assistance, dependent care FSA, Long term care insurance. Geico has what they called Associate Assistance Program (AAP). This program allows associates three phone or in-person counseling sessions at no cost to the employee. These benefits include Work-life balance programs, "Baby Welcome" program, Day care and elder care referrals, Counseling for stress, anxiety and depression, financial counseling, aid during crisis situations and legal consultation. Geico upholds a business casual environment and allows casual dress days. They offer discounts on travel, computers, flowers, cell phones and other products through partnerships with other businesses (Geico, 2014).
The fifth facet is Finance & Retirement. This facet aligns with the advantage enhanced profitability. Geico offers a variety of ways that associates can earn a…