Package remuneratio
While Geico has an effective total package remuneration system, its effective operation requires a robust strategy to align the departments and objectives to the vision statement. The most effective strategy requires effective communication with the employees to ensure every person understands the elements addressed. It is essential to integrate benefits in company strategies, specifically human capital, to link the people-business side (Jiang et al. 2019). Another element to consider in the strategy is teamwork. Teamwork will help the firm address employees’ objectives and needs. Increased number of offs and leaves for employees to address their personal issues, means that there is a gap in the HR system at one point in time; thus, the need to outsource or hire few employees as a partial replacement to oversee the abandoned work. This ensures that no is work left behind to affect company productivity and the employees’ needs are also addressed.
According to Chen and Hsieh (2016), appropriate communication of the benefits associated with the company’s total reward system is continuous, hence the need for maximum attention. The affected HR department, therefore, must involve employees to establish their needs and views regarding the packages and if the system is still attractive. It is essential to tailor a reward system to the company’s objectives and long-term strategic plans to avoid making losses because of high pays with no rewards. While offering the benefits, therefore, it is essential to communicate with employees to understand that the purpose of making them comfortable is to ensure they perform their roles better. The objective is to empower employees to serve better, become more creative, think critically, and steer the company to great heights by ensuring it gains a competitive advantage over the competitors.
According to Chen and Hsieh (2016), a reward program element should be strategically amalgamated, delivered effectively to align results with initial company objectives, missions, and vision. When developing its total reward system, Geico must consider amalgamating strategically by examining its HR strategy, starting from employee recruitment, selection, training, placement, motivation, and top leadership to achieve the ideal business strategy. The most important include evaluating and managing costs of the reward package to design packages that are affordable, defendable to shareholders, and above all, manageable. This requires effective management for the company to make the best choices, unique investment opportunities. Jiang et al. (2019) assert that the strategy must not mix the reward strategies, thus the need to deliberate the rewards in relation to those they want to reward.
It is important to note that the business environment changes, thus adjusting business strategies to align at all times. For instance, companies may face challenges caused by factors beyond their means, such as pandemics, global recession, and other related acts beyond their control. The results include the HR department saddled with the escalating benefit costs. Other changes include federal and state adjustments associated with healthcare and medical cover protocols. In such cases, it may be necessary to offer workers’ new deals to continue delivering on other financial obligations. The strategy must address this by balancing the realities, hence the flexibility to change the mix. Remixing the rewards is cost-effective, and this is done by strengthening the programs, but at the same time, ensure employees are involved to avoid resistance.
By starting to understand real aggregate costs, Geico can measure the level upon which their expenditures align with their competitive practice. Therefore, they can measure if they are having a reasonable return on overall investment. Accordingly, it is essential to note that today’s workforce encompasses numerous generations. Each has a different perspective on a significant reward program and what entails employee-employer relationship (Jiang et al. 2019). To benefit from the total reward system, Geico must develop different reward packages that blend into the different workforce segments. Since Geico targets a global market, employee diversity is essential, with both employees and employers embracing flexibility. The strategy must recognize what the employees want and demand and integrate them into their lifestyles and work.
The Effectiveness of Geico’s Total reward program and Areas of Improvement
The website analyses the benefit of the company’s total reward package, helping employees understand what the programs entail. For instance, Area Learning Centre has helped companies’ access services that focus on the essentials that include legal and engineering needs. More so, ALC has handled worker-performance issues, personal grievances, and safety at the workplace. Geico has used this information to benefit its strategic position in developing effective total rewards programs that address employees’ desires and attract new but qualified employees to their company.
Geico has provided a link to its benefits programs, connecting them to social media and influential blogs with information to help new, current, and potential employees. At the same time, they help the company monitor and control the nature and consistent flow of messages shared on their different sites, allowing alignment of shared information within the overall company’s strategies, objectives, vision, and mission.
Currently, workers look beyond the big picture when deciding where to work. Therefore, on the website, Geico must find a way to complement employees’ work and personal lives to assure employees that they can run their personal and work lives. Chen and Hsieh (2016) assert that employees analyze a total reward system when deciding to leave, join, or stay at a company. Geico could address this by preparing a factual summary statement that addresses potential employees to help them see the whole picture of joining the company. This will allow highly desirable job candidates to explore their options, and this will give Geico the upper hand in landing the best employees because of their’ total value’.
The company must use its website and other social media platforms to show their power of reallocating rewards and promote the total value of reward programs. It is essential to ensure the information in the provided link shows commitment to abandon the norm of setting pays and benefits, alongside other budgets in isolation, without referring to the broader strategic and cost objectives. According to Chen and Hsieh (2016), employee research shows that young employees prioritize a work environment that allows them to learn and grow their careers, in addition to the conventional reward elements. On the other hand, older staff prefer high pay and stability. In contrast, all periods prefer better medical and healthcare; thus, ensuring that the shared link addresses all the attributes required by different employee generations.