Aflac Insurance

 

A competitive compensation strategy should ensure that an organization is able to retains its best employees and motivate the employees so that they can maintain a high performance. The structuring if the payment strategy should not only focus on the job since an emphasis on the job can result in an attitude that parts of the activities are not part of the description (Noe, Hollenbeck, Gerhrt & Wright, 2018). Aflac’s compensation goes beyond payment on the basis of described job’s performance so as to improve job satisfaction and support the initiatives of the organization. On this basis, Aflac uses its products as way of improving compensation by offering them to employees at little to almost no cost. For instance, the firm offers a life insurance cover that is paid by employer, cancer policy that is paid by the company and an accident protection cover that is subsidized for the employees. This means that the compensation plan for the firm goes beyond a competitive salary to include other non- monetary benefits that includes the insurance products to employees at zero or subsidized costs. The use of products to enhance compensation is effective since following the existing payment structures based on the job when new skills are required may lead to the rewarding of the wrong behavior.

  The internal strengths of firm include the high quality communication process which enables a thorough review of employment benefits and compensation in terms of its true value. This enabled the firm to carry out survey on employee needs and satisfy them through offering rewards. The firm was able to provide for the needs of the employees through benefits at the same time balancing the involved cost. The ability to control cost while addressing the needs of the employees formed a good basis for structuring the rewarding system. The external strengths stems from the company’s public image which it enhances through philanthropic activities aimed at supporting the education, health, arts and youth of the community. The firm recognizes the employees efforts through the “Volunteer of the Month” which is awarded to an employee for the time they spend in volunteering activities if their choice. The firm also creates a favorable working environment that aligns with the needs of the entire generational workforce which improves productivity. The major weakness in the firm is the large costs that come with employee rewards but the firm is able to overcome this through a motivated workforce which improves productivity. Rewarding employee in an effective manner helps an organization to remain competitive and while improving its sustainability into the future (Davis, 2013). A firm should understand the need for being committed to employees and hence, drive the success of the company.

 

The traditional rewards offered by Aflac Insurance are insurance products including life insurance cover that is paid by employer, cancer policy that is paid by the company and an accident protection cover that is subsidized for the employees while non-traditional rewards includes the various incentives that the firm provides to the employees such as “Volunteer of the Month” awarded to employees.  The integration of the rewards proofs the commitment of the firm to meets the needs of the employees. This leads to more retention of its workforces as seen in the 90 percent of employees wanting to remain , 81 percent sees the Aflac as better than competitors while 89 percent perceive the reward statement as a communication tool that is effective. The firm is able to achieve high productivity and product quality which improves it competitive advantage.  A satisfied employee will be motivate to increase his or her input in production and this will translate into high quality products and improved customer services (Agyeman & Ponniah, 2014). The firm has managed to establish a curve in the industry informed by better products than competitors.

 

When rewards and benefits programs are aligned with objectives of a firm, employees are aware of what is expected and work towards achieving the mission (CITP & Ballaro, 2014). The benefits of the firm are based on employees needs for better pay, growth and development.  The corporate training of employees helps the employee to improve their skills and then be promoted through various ranks. The improve skills acquired by the firm enabled it to remain true to the values, in terms rewarding and enriching employees. The philanthropic gestures mean that the firm is focused on community welfare.  Hence it upholds it principles including building better shareholder value and high quality services.  By paying attention to the needs of employees and satisfying them through better benefits and rewards , the company is able to  gain from the improved service delivery while observing the laid down principles.

 

Recommendation

 For the firm to fully gain competitive advantage, it should reinforce the values in all the communication so that employees can identify with them. Recognition and rewarding value centered behaviors can help a firm to improve employee motivation and hence, increase productivity (Malik, Butt & Choi, 2015). Aflac Insurance should reward the employees’ efforts to integrate values in their work.

 

References

 

Noe, R.A., Hollenbeck, J.R., Gerhrt, B., & Wright, P.M. (2018). Human resource management: Gaining a competitive advantage .10 Ed. New York, NY: McGraw-Hill

 

Davis, T. L. (2013). A Qualitative Study of the Effects of Employee Retention on the Organization. Insights to a Changing World Journal, 2013(2).

 

CITP, C., & Ballaro, J. M. (2014). Developing an organization by predicting employee retention by matching corporate culture with employee's values: A correlation study. Organization Development Journal, 32(1), 55.

 

 

Agyeman, C. M., & Ponniah, V. M. (2014). Employee demographic characteristics and their effects on turnover and retention in MSMEs. International Journal of Recent Advances in Organizational Behaviour and Decision Sciences (IJRAOB), 1(1), 12-29.

 

Malik, M. A. R., Butt, A. N., & Choi, J. N. (2015). Rewards and employee creative performance: Moderating effects of creative self‐efficacy, reward importance, and locus of control. Journal of Organizational Behavior, 36(1), 59-74.