Studies have shown that, to retain, attract, and motivate employees, a total reward program should be developed by a company concerning the needs and wants of its workforce. It has been evident that recognition, leadership, and career opportunities are the main factors that help in employee retention and engagement. It is cost-ineffective to have a limited reward program since a company tends to respond to each case with cash. A total reward program focuses on reducing costs by focusing on programs that propel a business forward. The workforce has diversified over the years and hence change in expectations. Therefore, a total reward system should be developed in a manner that emphasizes job enrichment and has a flexible work schedule.
The Government Employees Insurance Company (GEICO) is an institution that offers a comprehensive total rewards program. The company provides benefits that include a wide range of options to preserve the employee’s well-being and health and also provide a financial future for the workers (Ruddy, 2007). The benefits of a total rewards program are, increased flexibility, higher retention and recruitment, reduced costs of turnover or labor costs, improved visibility in a tight labor market, and increased profitability.
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GEICO’s total rewards program enables a company to have improved recruitment and retention by creating a work experience that meets the needs of the workers. The reward program offered by GEICO has fundamental facets that match the textbook such as the recognition of the families of the workers. It is involved in helping families by including them in the health coverage of the employee. It also has retirement coverage and other compensation packages that make it possible for the company to motivate and retain employees. It has also time-offs and leaves which are then coupled with compensation packages making it a lucrative program for the employees. The company has sick leaves and paid vacations each having 10 days annually for associates who have not worked for a company for more than five years. For management, the paid leaves and time vary based on the level of associates. It also has other lucrative rewards such as floating holidays and six additional paid holidays. The rewards help a company retain a motivated workforce and also have an easy time recruiting new highly qualified employees.
Another advantage of the GEICO total reward program is that it reduces labor costs/ cost of turnover by providing training and education fund for the employees. The company awards workers on their areas of specialization by helping the employees advance their skills and knowledge. The activities would be catered for by the company but since the cost is catered for by GEICO, the organization does not incur the cost directly.
The program by GEICO increases flexibility by creating different rewards that cater to diverse workforce segments. In the global market, workforce diversity is a mandatory requirement, and therefore a total reward program that is flexible is effective and convenient for an organization (Scott., et al, 2010). GEICO provides a flexible program by having different rewards for different categories of employees. The 10 weeks paid leave for parents helps in recruiting more women and also retain them in the workforce.
Another facet that the company provides with its total reward program is career opportunities and development. The opportunities are chances and programs offered to workers so that they can advance within an organization. The employees in turn provide their greatest value to the company. The program also helps an organization advance and also become relevant in an ever-changing market (Beck-Krala, 2020). The development and improvement of competence and skills of the employees by GEICO helps in increasing the performance of workers and offers them an opportunity to advance. The development helps in increasing the productivity of a company which helps in maximizing the profits of an organization.
GEICO's total rewards program helps the company in heightening its visibility in a tight labor market by helping adapt to an ever-changing market. In recent years, there has been a demographic shift, that is, increased women employees in the workforce, which has been mandatory and it ensures that a company has a good picture from its consumers (Sahakiants., et al, 2018). GEICO has helped companies adjust and take care of the needs of women by providing 10 weeks of paid parental leave to women so that they can recover from the process of giving birth. The period also allows the mothers to bond with their newborns. For parents who adopt children, the program rewards the parents with the same period for them to born with their newly-adopted children. The program helps in not only retention of employees but also creating a workforce that is gender compliance which is a critical aspect that consumers consider.
During the creation of a strategy that would ensure the program by GEICO addresses all the advantages, it is important to establish the goals and mission of a company. Before developing a strategy, it is important to carry out an inventory t know what is already existing and identify the gaps. It is also important to assess the cost of the existing programs. It is therefore important to identify the skills needed and engage experienced and skilled workers in their respective positions so that there is value for resources used and develop a smooth working environment (Gross & Friedman, 2004). An audit of the programs should be carried out to determine whether they fully motivate the employees and adjust them accordingly so that they can bring on board all the workers.
During the development of a strategy, there should also be a reward and risk management program to balance the rewards of the employees. The human resource department should do a study and identify the skills of the employees and thereafter place them in their right positions (Gross & Friedman, 2004). They should also calculate the cost of the changes. The process will reduce the cost of operation associated with rewarding workers. It will also help in clarifying the rewards every employee receives so that there is no confusion and make the employees feel contented.
The changes that I would make to the GEICO total reward program is to edit the rewards since they are more focused on management. This is because management is more recognized in the programs but the enlisted employees are the ones who are most involved in achieving the goals and objectives of an organization. GEICO should focus more on the personnel in the lower ranks so that they can be more motivated in attaining the aspirations of a company. Secondly, I would change the benefits offered by GEICO total rewards program. The reason for the change is that health care is a vital element of human beings and especially workers. Health care is expensive and therefore I would categorize health care packages on the costs and needs of the workers. I would carry out a study that would help in finding out the benefits that the employees would prefer and thereafter allow them to choose from a list of health-care benefits. GEICO should enhance their training by increasing seminars, workshops, and organizing more meetings.
Effective communication of the total rewards program is critical in ensuring that the employees and prospective recruits get the necessary information about the rewards. Proper communication is vital to its success (Ruddy, 2007). The communication done by GEICO on their website is too little which is a major problem since the employees may not understand them easily and how the incentives will affect them. From the website, the information offered is little that it is difficult for an employee to perceive it to be of value to him. Therefore, GEICO needs to add some information that will make the programs to be more understood by the employees.
In conclusion, a total rewards program is a tool used by employers to retain, motivate, and help them attract new employees with the best skills, education, values, and experience. Employees have become a strategic resource that is limited and hence there is high competition for them. Therefore, a company has to offer them better opportunities through total rewards programs. The advantage of a good total rewards program is that it reduces the cost of production and increases productivity through motivation and hence increasing profits. GEICO is a representation of TRP which is flexible, has improved recruitment and retention, reduces labor costs or cost of turnover, heightens visibility in a tight labor market, and enhances profitability. However, the program focuses on management and therefore there is a need to change the focus so that the employees in the lower ranks may feel appreciated. GEICO’s website has little information on its programs which may make the employees perceive as not addressing their needs. When creating a total rewards strategy, it is crucial to know what the employees need through interviews so that they own the program. An assessment should be done shortly after implementation to determine its effectiveness. An inventory should then be done after some time to know what is there and what is missing and the appropriate changes should be done to meet the needs of the employees.
References
Beck-Krala, E. (2020). Total Rewards. Encyclopedia of Sustainable Management , 1-9.
Gross, S. E., & Friedman, H. M. (2004). Creating an effective total reward strategy: Holistic approach better supports business success. Benefits Quarterly , 20 (3), 7.
Ruddy, A. C. (2007). The world at work handbook of compensation, benefits & total rewards: A comprehensive guide for HR professionals. New Jersey: Jhon Willey & sons Inc .
Sahakiants, I., Festing, M., Engle, A. D., & Dowling, P. J. (2018). Comparative total rewards Policies and practices. In Handbook of research on comparative human resource management . Edward Elgar Publishing.
Scott, D., McMullen, T., Royal, M., & Stark, M. (2010). The impact of rewards programs on employee engagement. Retrieved March 18 , 2014.
