Aflac Strengths And Weaknesses

In offering supplemental health and life insurance for U.S. and Japanese markets, the insurance firm American Family Life Assurance Company (AFLAC) seeks to stay competitive in finding, retaining, and delivering quality service to 4,500 employees, and cost containment is a major concern in a competitive environment. To help control employee costs, AFLAC used monetary and nonmonetary rewards as direct and indirect compensation to balance benefits and costs. As such, AFLAC’s total compensation plan consisted of base compensation, pay incentives, and indirect benefits (Gomez-Mejia, Balkin, & Cardy, 2016). With attention to distinct individual reward preferences, AFLAC offered portable and stable competitive salaries to meet the needs of a
Accordingly, the training and career development initiative is an internal strength and external weakness. As an internal strength, AFLAC values corporate knowledge and takes an active role to cultivate internal promotions. On the same notion, a large degree of internal promotions can be an external weakness as it limits outside experience, which can diminish innovation and narrow perspective (Gomez-Mejia et al.,
By incorporating the voice of the employee, AFLAC found, established, and implemented benefits to satisfy employee needs and used these specific benefits to drive employee job satisfaction, performance, and retention. Moreover, in soliciting the employee perspective, AFLAC ascertained what benefits employees found important, and can adjust where necessary to accommodate for future changes in preferences. Additionally, integrating employee perspectives helped contain costs by avoiding wasting limited resources. It is evident that using satisfaction surveys and focus groups to drive the employee needs assessment is a major factor in AFLAC’s corporate values and benefits strategy. The cumulative effect from the strategy produced high job satisfaction and employee retention. With the approach to align the benefits strategy with strategic values, AFLAC attracted and retained the best employees in a competitive