What Is Geico's Total Rewards Program
Assignment 1
CJ
HRM 533
Date: April 22, 2012
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 …show more content…
& 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
and experience. Geico takes the time to place a monetary value on the work that n an employee
provides for their company. These salaries are based on not only competitor’s salaries but also on
the overall cooperate budget of the agency. Throughout the past few years with the economic
decline Geico was one of the few employers able to sustain the decline without having to cut
their work force.
Benefits are the second facet of the total rewards structure that Geico pays close attention to
maintain their employee’s quality of life. Benefits are programs an employer uses to supplement
the cash compensation that employees receive. These health, income protection, savings, and
retirement programs provide security for employees and their families (Ruddy, 2007) Geico
provides health, dental, and vision coverage.
These benefits are available to employees directly
after the first pay roll. Employees also have available to them short term, and long term disability
coverage as well physical fitness gym memberships and a discount to promote wellness.
The third facet of the total rewards program is Work-life, a specific setoff organizational
practices, policies, and programs plus a philosophy that actively supports efforts to help
employees achieve success at both work and home (Ruddy, 2007) important to any employee
especially to the ones that have families and are planning to have families. At Geico they prepare
for any leave that an employee will need. Anything from the need to take a vacation to the days
you’re just under the weather. Also they prepare for the dreaded jury duty to the emotional
challenges from a death of a family member or the new edition of a family member. But through
it all Geico is ready for those changes an employee can rest a assure that they have the support of
their company.
The fourth facet of the total reward framework is the Development and Career …show more content…
Opportunities.
Development is a set of learning experiences designed to enhance employees’ applied skills and
competencies; development engages employees to perform better and leaders to advance their
organizations’ people strategies. On the other hand, Career opportunities are a plan for
employees to advance their own career goals and may include advancement into a more
responsible position in an organization. The organization supports Career opportunities internally
so that talented employees are deployed in positions that enable them to deliver their greatest
value to their organization (Rudy, 2007).
At Geico they see the importance of a valued education
as well as the constant need to develop and learn new ways to effectively do their job. So that’s
why Geico offers up to $5,200 dollars a year reimbursements to employees as well as for the
dependents for education. This $5,200 dollars will cover tuition, application fees, books and
other educational devices (N.A., 2012). Also Geico offers to its employees Geico University.
This is a training program that Geico set up to keep all the employees trained and ready for all
the changes in the industry while helping these employees grow personally.
The five facet of the total rewards program is Performance and Recognition. Performance a
component of organizational success, performance is assessed in order to understand what was
accomplished, and how it was accomplished. Recognition Acknowledges or gives special
attention to employees actions, efforts, behavior, or performance (Ruddy, 2007) Geico awards
their employees for a job well done keeping the moral up within the company. These awards
are
posted on their web site under press releases for the whole company and world to see. These
awards that are given to the employees give the other employees something to strive for helping
promote a healthy competition within the company.
Total Reward Strategy
Geico needs a strategy that addresses all of these advantages. It is recommended that the
company set up a strategy that will help Geico’s total rewards programs to match the world at
work strategies with have to start with focusing on the companies over all goals. That starts with
matching employees and the skills to the company’s goals and strategies. Once employees are
identified then ask the employees what would make their experience at the company more
suitable and pleasurable. In my experience a comfortable employees balance the 5 keys to a
complete total rewards programs. As the decision maker at your company it’s important that the
cost of the skill you hire matches the output of those employees. Typically the higher the costs
you pay the more production you get form your staff. Strengthening performance management
systems starts with a solid and well trained supervisory staff. Your management staff has to be
well trained in their area of expertise. This will help them identify staffs potential to make a
department more productive. This will in turn helping management identify their top performers
from everyone else. This will help an agency develop a compensation scale that will make them
a competitor among their competitors.
The Communication Plan
In examining the effectiveness of the communication of Geico’s total rewards program based
upon the Websites’s descriptions of the benefits, the following changes for improvement are
recommended: The first change that can use improvement is in their Performance and
Recognition. By looking into their total rewards package I don’t see much in this area. After
reviewing their press release it looks like they only recognize management. In my experience
The line staff is what makes a company run. It’s those individuals doing the daily input that help
makes these companies run the way they do. The second change that will help increase an
employee quality of life would be offsetting their health benefits cost. This can be done by
offering an employee to trade in one hour of their leave time per pay to offset the cost of health
benefits cost. This can be done by offering an employee to trade in one hour of their leave time
per pay to offset the cost of health benefits. Like most employees we carry enough leave time
where 1 hour a pay won’t hurt us and to see that amount go back into our salaries will be a
morale booster. This will also help an employee feel better about their company because they
will feel like their listening to their problems. The third change I think the employees are
unhappy about is the Performance and Recognition that they are receiving for a job well done. I
believe if you start recognizing the employees at the lower levels you will see increased
productivity. The best way to does this award the outstanding employees by division instead of
companywide. This way you’re able to capture the little departments that usually get over
looked. So these individuals can feel like they’re a part of the bigger picture of the company.
CJ
HRM 533
Date: April 22, 2012
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 …show more content…
& 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
and experience. Geico takes the time to place a monetary value on the work that n an employee
provides for their company. These salaries are based on not only competitor’s salaries but also on
the overall cooperate budget of the agency. Throughout the past few years with the economic
decline Geico was one of the few employers able to sustain the decline without having to cut
their work force.
Benefits are the second facet of the total rewards structure that Geico pays close attention to
maintain their employee’s quality of life. Benefits are programs an employer uses to supplement
the cash compensation that employees receive. These health, income protection, savings, and
retirement programs provide security for employees and their families (Ruddy, 2007) Geico
provides health, dental, and vision coverage.
These benefits are available to employees directly
after the first pay roll. Employees also have available to them short term, and long term disability
coverage as well physical fitness gym memberships and a discount to promote wellness.
The third facet of the total rewards program is Work-life, a specific setoff organizational
practices, policies, and programs plus a philosophy that actively supports efforts to help
employees achieve success at both work and home (Ruddy, 2007) important to any employee
especially to the ones that have families and are planning to have families. At Geico they prepare
for any leave that an employee will need. Anything from the need to take a vacation to the days
you’re just under the weather. Also they prepare for the dreaded jury duty to the emotional
challenges from a death of a family member or the new edition of a family member. But through
it all Geico is ready for those changes an employee can rest a assure that they have the support of
their company.
The fourth facet of the total reward framework is the Development and Career …show more content…
Opportunities.
Development is a set of learning experiences designed to enhance employees’ applied skills and
competencies; development engages employees to perform better and leaders to advance their
organizations’ people strategies. On the other hand, Career opportunities are a plan for
employees to advance their own career goals and may include advancement into a more
responsible position in an organization. The organization supports Career opportunities internally
so that talented employees are deployed in positions that enable them to deliver their greatest
value to their organization (Rudy, 2007).
At Geico they see the importance of a valued education
as well as the constant need to develop and learn new ways to effectively do their job. So that’s
why Geico offers up to $5,200 dollars a year reimbursements to employees as well as for the
dependents for education. This $5,200 dollars will cover tuition, application fees, books and
other educational devices (N.A., 2012). Also Geico offers to its employees Geico University.
This is a training program that Geico set up to keep all the employees trained and ready for all
the changes in the industry while helping these employees grow personally.
The five facet of the total rewards program is Performance and Recognition. Performance a
component of organizational success, performance is assessed in order to understand what was
accomplished, and how it was accomplished. Recognition Acknowledges or gives special
attention to employees actions, efforts, behavior, or performance (Ruddy, 2007) Geico awards
their employees for a job well done keeping the moral up within the company. These awards
are
posted on their web site under press releases for the whole company and world to see. These
awards that are given to the employees give the other employees something to strive for helping
promote a healthy competition within the company.
Total Reward Strategy
Geico needs a strategy that addresses all of these advantages. It is recommended that the
company set up a strategy that will help Geico’s total rewards programs to match the world at
work strategies with have to start with focusing on the companies over all goals. That starts with
matching employees and the skills to the company’s goals and strategies. Once employees are
identified then ask the employees what would make their experience at the company more
suitable and pleasurable. In my experience a comfortable employees balance the 5 keys to a
complete total rewards programs. As the decision maker at your company it’s important that the
cost of the skill you hire matches the output of those employees. Typically the higher the costs
you pay the more production you get form your staff. Strengthening performance management
systems starts with a solid and well trained supervisory staff. Your management staff has to be
well trained in their area of expertise. This will help them identify staffs potential to make a
department more productive. This will in turn helping management identify their top performers
from everyone else. This will help an agency develop a compensation scale that will make them
a competitor among their competitors.
The Communication Plan
In examining the effectiveness of the communication of Geico’s total rewards program based
upon the Websites’s descriptions of the benefits, the following changes for improvement are
recommended: The first change that can use improvement is in their Performance and
Recognition. By looking into their total rewards package I don’t see much in this area. After
reviewing their press release it looks like they only recognize management. In my experience
The line staff is what makes a company run. It’s those individuals doing the daily input that help
makes these companies run the way they do. The second change that will help increase an
employee quality of life would be offsetting their health benefits cost. This can be done by
offering an employee to trade in one hour of their leave time per pay to offset the cost of health
benefits cost. This can be done by offering an employee to trade in one hour of their leave time
per pay to offset the cost of health benefits. Like most employees we carry enough leave time
where 1 hour a pay won’t hurt us and to see that amount go back into our salaries will be a
morale booster. This will also help an employee feel better about their company because they
will feel like their listening to their problems. The third change I think the employees are
unhappy about is the Performance and Recognition that they are receiving for a job well done. I
believe if you start recognizing the employees at the lower levels you will see increased
productivity. The best way to does this award the outstanding employees by division instead of
companywide. This way you’re able to capture the little departments that usually get over
looked. So these individuals can feel like they’re a part of the bigger picture of the company.