Introduction
In the wake of struggles by firms because of employee attrition and an increase in the levels of competition for limited human resources, it has become critical for organizations to figure out novel approaches to competitive advantage. Smart managers have now realigned their human resource strategies using the concepts of total compensation. The concept of total compensation has Biblical foundations in James 5:4 in which Paul directs employers to be socially responsible for the welfare of their workers. This essay presents a case study of Aflac Corporation and the manner in which its management has adopted the total compensation approach to create competitive advantage. The essay also recommends one strategy that would improve the benefits of the current plan.
How the Company Uses Its Own Products or Services to Enhance the Total Compensation for Its Employees
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Rewarding workers is now a critical factor for most firms that would like to remain competitive, sustainable, and profitable. Aflac is one of the companies that comprehend the usefulness of the concepts of totals rewards, as a balance between the corporate’s vision and the need for the organization to care for its employees. Specifically, Aflac’s total rewards integration is indicated in the move by the organization to offer the services that it provides for sale to the market to its employees. Being an insurance company, Aflac resolved to provide a one hundred percent cancer insurance to each employee at the firm (Aflac, 2018). This strategy mirrors the organization’s commitment to the care of the community in which it operates. The firm is also devoted to improving the social wellbeing of its employees, which is why it constructed one of the biggest on-site facilities of childcare in the US (Aflac, 2018). The move resonated with the community for the fact that it showed the commitment of the organization to both its workers and to their families.
The Internal and External Strengths and Weaknesses and How the Company Responded To These Factors from A Total Rewards Perspective
The internal strength of the company was the fact that it had one of the most experienced pools of employees in the insurance industry. However, the changing industrial dynamics and the effects of the labor market meant that some of the workers would leave for better opportunities in other companies. The issue of employee morale required to be addressed significantly because of its contribution to their job satisfaction and commitment to stay in the organization (Evans, 2017). From an external perspective, the organization’s strength was the fact that it has a large pool of talented staff who are useful in attracting more clients to the organization. However, the company was vulnerable to competition for human resources since some other firms in the industry had adopted aggressive recruitment strategies that focused on employee welfare. The fact that human decisions are affected mostly by a consideration for the rewards and punishments of each choice, it would have been difficult for the management of Aflac to hold onto its most experienced human resources if they wanted to explore better opportunities. For this reason, the organization’s focus on total reward would mean it would be possible for the management to increase the staff motivation to continue working at the institution. Consequently, the total reward approach enabled the company to retain its top talent as well as to attract fresh employees who were seeking better opportunities.
Examples of Traditional and Non-Traditional Rewards and How They Are Used To Meet Organizational Objectives
The organization provides both non-traditional and traditional total rewards that have varying outcomes on the firm’s objectives. For instance, at Aflac, the traditional total rewards include bonuses for focused employees. This strategy has resulted in increased levels of management focus, employee job satisfaction, bottom-line profitability, and brand identity. On the other hand, the non-traditional rewards of the corporation entailed tying client satisfaction and loyalty with the wellbeing and motivation of the workers as esteem human resources of the organization. The outcomes are predicted by the requirement of the organization’s human resources department to assess the total reward outcomes of the organization. The organization was able to attain the identified outcomes for the fact that it engaged in focused employee hiring, training, and retention procedures as well as ensuring the existence of a diverse workplace. This reason explains why the insurance industry had one of the lowest rates of unemployment in the world with only approximately 3% unemployment (Reed, 2016).
How the Company Aligns Its Benefits with Its Corporate Values
The insurance industry is quite competitive, which explains why the total reward strategy has been useful to the organization concerning elevating its competitive advantage. The objective of the organization has been to be the best in its industry, which is why dealing with competition is a significant step for the nature of its business. Therefore, the improvements in the levels of employee job satisfaction have enabled Aflac to create a strong competitive advantage, which has enabled it to be one of the best firms in the US insurance industry.
Recommendations
While the organization has achieved significantly concerning its total reward approach, there is room for improvement. For example, management at the corporation might want to adopt other reward systems that include fringe benefits to the employees. One such approach would be to improve the allowances for workers, including travelling and house benefits. These two benefits have been reported in literature to be among the most significant factors that influence the decisions of employees to migrate from one locality to the next in search for employment opportunities whose net returns are higher than their current jobs (Tremblay, Sire, & Balkin, 2010). Therefore, it is likely that the organization will have more satisfied workers if it addresses the issues of their travelling and housing allowances.
References
Aflac (2018). Aflac Supplemental Insurance . Retrieved 29 March 2018, from https://www.aflac.com/about-aflac/corporate-citizenship/default.aspx
Evans, L. (2017). Understanding teacher morale and job satisfaction. Teaching and Teacher Education , 13 (8), 831-845.
Reed, S. (2016). Benefits and Business at Aflac and L.L. Bean . Society for Human Resource Management (SHRM) - Total Rewards Student Handbook . Springer, New York: NY
Tremblay, M., Sire, B., & Balkin, D. B. (2010). The role of organizational justice in pay and employee benefit satisfaction, and its effects on work attitudes. Group & Organization Management , 25 (3), 269-290.
