Hrm 533 – Total Rewards Program
“Total Rewards Program”
Desiree-Ann P. Bodden
Professor: Dr. D. Garrett
Morrow Campus
HRM 533
April 22, 2012
Strayer University
Geico Insurance Company Employees 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 wide-ranging public. With this way of thinking Geico was able to cut out the middle man “agents” and smaller companies saving the company money. So now that they have grown they are now able to pass these saving onto the customers none government workers, 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 maintaining a low employee turnover ratio. These principles help develop the company that people see today.
Advantages to a Total Rewards Approach
The first facet when reviewing Geicos compensation scale and comparing it to its competitors. Geico salaries are competitive to its competition like State Farm and All State. For the most part Geico salaries exceed the industry. When reviewing the salaries that was posted by position it compensated all positions well from entry level customer services representatives 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 an employee provides for their company. Earnings are based on not only competitors salaries but also on the overall cooperate funds of the agency.
Determine which facets of the Geico total rewards program align with the (5) top advantages of total rewards program.
First advantage of the total rewards approach is increased flexibility. Dealing with increased flexibility which combines transactional and relational awards to be mixed and remixed to meet the different emotional and motivational needs of employees (WorldatWork@ 2007, pp.15). Dealing with a global economy there is no set time for business, so there shouldnt be a set of standards on how a productive employee receives