Geico Total Rewards Program
Francena Hicks
Dr. David Fountaine,SPHR
Talent Management HRM53201016
10/27/13

Introduction
The purpose of this paper is to discuss the Geico employees’ Total Rewards Program and its alignment to the advantages of total rewards programs in general that are noted in the literature. According to the Geico website, there are five benefits to their Total Rewards Program: Health & Well-Being, Education & Training, Finance & Retirement, Time off & Leave, and Family & Life. The first part of this paper will look at these five programs in-depth and explain how Geico intends to benefit its employees. This analysis will include an evaluation of the effectiveness of the communication of Geico’s total rewards program based on the website’s descriptions of the benefits and include two recommendations for improvement to the program and/or its communication practices. By assuming that there are two weaknesses to the current plan, this paper will provide two improvements for these weaknesses to make employees happier. The final half of the paper will match Geico’s program with data from the literature on the effectiveness and benefits of these types of programs and discuss any implications there may be for the Geico program.
Determine which facets of the Geico total rewards program align with the five (5) top advantages of a total rewards program outlined in Chapter 2 of the textbook and discuss your reasoning.
Geico’s total rewards program includes five elements: Health & Well-Being, Education & Training, Finance & Retirement, Time off & Leave, and Family & Life. According to the company website, “Our associates' quality of life — now and in the years to come — is important to us. As a full-time GEICO associate, you'll be offered a comprehensive Total Rewards Program. Benefits include a variety of options to preserve your health and well-being, secure your financial future, and enjoy more out of life!” (Geico, 2013). The following examination of each of these five elements will attempt to match Geico’s aforementioned statement with what actually exists in the elements.

Health & Well-Being
The Health & Well-Being section includes four sub-elements: Medical, Dental & Vision Coverage; Associate Assistance Program; Long-term Disability; and Physical Fitness. Geico argues on this page that these benefits are meant to meet the needs of employees in regards to health and to demonstrate that the company cares about their employee’s needs. Geico’s Medical, Dental & Vision Coverage includes plans only for full-time associates (this paper assumes contractors and part-time associates, if they exist, are ineligible) that include a PPO or HMO health plan of the associate’s choice which include competitively priced co-pays for office visits and prescriptions. This coverage also includes dental benefits and vision benefits . The website also mentions that Geico pays a significant portion of their associates’ medical and dental insurance premiums. The Associate Assistance Program provides mental health counseling sessions at a rate of three free sessions per year. Geico’s Long Term Disability program offers associates a buy-in option, paid for by the company after a three-year period, to cover a portion of the employee’s expenses should they suffer a debilitating injury or condition that prevents them from performing their duties. Finally, physical fitness classes, gymnasiums, and weight-loss programs are available in-office as well as company sponsored fitness and sports events.
Education & Training Geico offers several training programs for its full-time associates including paid training in “sales, customer service, claims and auto damage” and it claims these programs are the best in the insurance industry. Geico also pays for sales and customer service representatives to take state licensing exams as well as the required continuing education to maintain the license. Another program offered is tuition reimbursement. This program is available only to full-time undergraduate degree-seeking students in accredited colleges and universities. The programs reimburses students up to $5,250 per year and covers application fees, tuition, course-related charges and up to 75% of textbook fees (Geico, 2013). Geico University is another Geico-provided campus of studies providing e-learning courses in areas of business and management, Six Sigma training, diversity and ethics, MS Office, project management, presentation skills, business writing, statistics, and others not mentioned. Separate from this program is a program in insurance studies which helps employees “gain an in-depth understanding of our business, many associates participate in our insurance studies program. Offered by The Institutes (AICPCU), courses are 100% reimbursable when the national exam has been satisfactorily completed” (Geico, 2013). Finally, Geico provides online job boards for associates to advance their careers as well as family scholarships to children of associates.
Finance & Retirement Geico offers traditional and Roth 401(k) plans with a 10% company match through their profit sharing program. A health care FSA (flexible spending account) allows employees to contribute pretax dollars to their medical expenses not covered by their insurance plans. Life insurance, credit union access, and legal/financial consultations are also provided.
Time Off & Leave Geico offers paid vacations and sick days for its employees. Paid vacations accrue at a rate of 10 days per year for the first five years, 15 per year after five years, and 20 per year after 15 years. Employees also are provided six paid holidays per year, 10-15 sick days per year, leave for jury duty, and can apply for a Family Medical Leave of Absence (FMLA) in some states for personal or family sickness and pregnancy.

Family & Life
Geico offers assistance to families for dependent care in the form of an FSA, provides up to $5000 for adoption assistance, and provides long-term care insurance plans to help pay for life’s later years. Certain discounts on travel, gym memberships, and other purchases may also be available.
Create a strategy for ensuring that the Geico plan addresses all of the advantages Geico communicates the total rewards program fairly well on its website. Important to point out is the fact that this information is available not only to associates already working for the company but is available to prospective hires directly on the careers website. This is a tool to acquire the best talent by displaying a “window-shopping” sort of environment for prospective employees to best choose where they want to work. This paper argues for two improvements to the website to make it more attractive to both prospective hires and new employees: further define insurance plan benefits to include potential insurance companies; and make the site itself more easily navigable. First, it is important to know which insurance plans are offered through an employer. By simply stating “one is an HMO and one is PPO” the company is not giving enough information to the employee. Which companies offer the insurance? Is dental or vision insurance provided through a different company than the primary insurer? What are the benefits of an HMO versus a PPO? What will my insurance premiums look like through your companies plan? A simple premium calculator would help employees and potential employees check those costs. Second, the website is not easily navigable. It is easy to reach the Total Rewards Program page through horizontal navigation at the top of the website but it is difficult to get back to the previous page once you click on a link. Some ways to test how to better construct the page would be to implement an eye-tracking test to see what elements on the page are of most interest to users. This would ensure the best user experience on the web page.
Evaluate the effectiveness of the communication of Geico’s total rewards program based upon the Website’s descriptions of the benefits. Recommend two (2) areas for improvement. According to Rumpel and Medcof (2006), a total rewards program like Geico’s program is a best fit program because it incorporates rewards for employment aside from salary information. “Total rewards,” say the authors, “takes a holistic approach to rewards, going beyond the strong focus on pay and benefits which has been the hallmark of traditional compensation practice. Total rewards consider all the rewards available in the workplace, including opportunities for learning and development, and quality work environment” (p. 27). It is the belief of this paper that Geico meets the statement above.
Assuming employees are unhappy with the current plan, offer two (2) improvements or changes to Geico’s total rewards program.

Geico provides learning and development opportunities which increase career advancement. An increase in career opportunities could also mean increases in salaries. This means that rather than focus on salary alone, Geico is focusing on ways one might increase their base salary. This means that Geico can get the best employees as well. According to Fischer, Gross and Friedman (2003) in their study of Marriot hotels, a similar total rewards program allowed the company in reduce turnover and increase retention, enhance productivity, and thereby increase return on its investment of several billion dollars toward the program (p. 19-20). Wyatt (2005) argued that “organizations can effectively focus on a shared set of goals and objectives while simultaneously earning attractive returns to shareholders” (p. 23). While a program might be costly for a company like Geico, the literature suggests that it is a worthwhile investment with big returns and one that is likely to attract the best staff and use that staff to increase productivity and profits.

References
Fischer, K., Gross, S. E., & Friedman, H. M. (2003). Marriott makes the business case for an innovative total rewards strategy. Journal of Organizational Excellence, 22(2), 19-24.
Rumpel, S., & Medcof, J. W. (2006). Total rewards: good fit for tech workers. Research-Technology Management, 49(5), 27-35.
White, R. (2005). A strategic approach to building a consistent global rewards program. Compensation & Benefits Review, 37(4), 23-40.