Geico Case Study

Week 3: Assignment 1

GEICO Case Study

Sabria Bates

Dr. Larry Byrd

HRM 533

April 29, 2013

Advantages of a Total Rewards Strategy

In today’s workplace many companies feel the best way to attract top performers and retain their talents at an organization is to present prospective employees with a complete total rewards strategy. This approach to total rewards has many advantages and many are seen in the Geico case study. One of the five advantages of a total rewards approach, increased flexibility, is definitely one of the key facets in Geico’s total rewards strategy. This advantage is shown in the fact that the company provides a variety of benefits to all their associates. Full time employees are eligible for the most benefits, having the choice to choose from a variety of medical plans including PPO and HMO.

Part time and interns are eligible for benefits that may vary. By doing this, Geico is showing their flexibility in “creating different blends of reward packages for different workforce segments.” (World at Work, 2007, p.15). All employees no matter if they are full time, part time or intern have the opportunities to take advantages of the casual dress environment, discounts on travel, electronics, flowers, and cell phones. All employees have access to free or low cost parking and discounts on their auto insurance.

The second facet of the five advantages, improved recruitment and retention, is shown in the Geico strategy by the implementation of the website. The website that Geico currently has for its total rewards approach allows potential employees to access its career site and explore career opportunities, browse the company’s compensation and benefits packages, examine career paths and even apply for jobs. This allows Geico to attract and recruit top performers while demonstrating their competitive advantage by showing the “total value” of their total rewards package.

Another facet of the five advantages of a total rewards approach is...