Geico
Geico Employees Insurance Company has been in existence since in 1936 and was founded
by Leo and Lillian Goodwin. Geico was established to provide auto insurance for governmental
employees in the entire United States. Geico was based on the idea the governmental employees
were safer and more financially dependable then the general public. With this way of thinking
Geico was able to cut out the middle man and saving the company money. Therefore, they were
able to pass these savings onto the customers, employees, and advertising.
Geico total rewards program aligns with the basic total rewards program that is
Compensation, Benefits, work-life, Performance & Recognition, and Development & Career
Opportunities. This set up was designed and implemented to mirror how the government was
operating. The way Geico was structure it developed and promoted internally. They used this
technique at Geico to develop well knowledgeable employees as well as maintain a low
employee turnover ratio. Theses principles help develop the company that people see today.
There are several advantages to using a total rewards approach to compensating the
workforce. The top five are described in the text (pp. 15-17). The following paragraphs discuss
the facets of the Geico total rewards program that align with these advantages:
Advantages to a Total Rewards Approach
The first facet when reviewing Geico’s compensation scale and comparing it to its
competitiors. Geico salaries are competitive to its completion like State Farm and All State. For
the most part Geico salaries exceed the industry. When reviewing the salaries that were posted
by position it compensated all positions well from entry level customer services representative
all the way up to their senior executives. Geico pays their employees based off of their skill level...
1. Determine which facets of the Geico total rewards program align with the five
by Leo and Lillian Goodwin. Geico was established to provide auto insurance for governmental
employees in the entire United States. Geico was based on the idea the governmental employees
were safer and more financially dependable then the general public. With this way of thinking
Geico was able to cut out the middle man and saving the company money. Therefore, they were
able to pass these savings onto the customers, employees, and advertising.
Geico total rewards program aligns with the basic total rewards program that is
Compensation, Benefits, work-life, Performance & Recognition, and Development & Career
Opportunities. This set up was designed and implemented to mirror how the government was
operating. The way Geico was structure it developed and promoted internally. They used this
technique at Geico to develop well knowledgeable employees as well as maintain a low
employee turnover ratio. Theses principles help develop the company that people see today.
There are several advantages to using a total rewards approach to compensating the
workforce. The top five are described in the text (pp. 15-17). The following paragraphs discuss
the facets of the Geico total rewards program that align with these advantages:
Advantages to a Total Rewards Approach
The first facet when reviewing Geico’s compensation scale and comparing it to its
competitiors. Geico salaries are competitive to its completion like State Farm and All State. For
the most part Geico salaries exceed the industry. When reviewing the salaries that were posted
by position it compensated all positions well from entry level customer services representative
all the way up to their senior executives. Geico pays their employees based off of their skill level...
1. Determine which facets of the Geico total rewards program align with the five
References: Corby, S., White, G., & Stanworth, C. (2005). No news is good news? Evaluating new pay systems Gerhart, B., & Rynes, S.L. (2003). Compensation: Theory, Evidence, and Strategic Implications. Lawler, E.E. III, Mohrman, S.A., Benson, G. (2006). Organizing for High Performance: Employee Involvement, TQM, Reengineering, and Knowledge Management in the Murray, B., & Gerhart, B. (1998). An Empirical Analysis of a Skill-Based Pay Program and Plant Performance Outcomes “Total Rewards Program,” Retrieved on July 19, 2012 from http://careers.geico.com/working_ At_geico/total_rewards_program. Worldatwork, (2007). The WorldatWork Handbook of Compensation, Benefits, & Total Rewards