GEICO possesses five different kinds of programs that help their employees well being and they include programs like associate assistance program (AAP), health and well being that includes plans like vision, medical and dental, long term disability (LTD) as well as physical fitness. The ensuing program that GEICO has is the Building Your Financial Future. It aids the employees in planning for their retirement by providing them with alternatives which include accident insurance, Roth 401K plans, customary plans, plan life insurance, profit sharing, flexible spending accounts as well as matching gift program and associate assistance program. GEICO also covers leave programs and Time Off that comprise paid vacations and trips, leave programs and sick days. Life and family programs are also incorporated into their total rewards package and include long term care insurance plan, adoption assistance dependent care, associate assistance program (AAP) and FSA (www.geico.com).
Advantages of Total Rewards Approach
The first feature of total rewards approach that GEICO pays attention to is incentives in order to preserve their employees’ standard of living. Incentives are those programs that an employer uses to complement the cash compensation that the employees receive. These retirement, health, savings and income protection programs offer protection for the employee and their families (Ruddy, 2007). The company offers vision, health and dental coverage. The incentives are immediately accessible to the employee after the first pay check. Employees are can also access both short and long term disability coverage, gym memberships and an allowance to encourage wellness.
The second feature would the competitive nature of
