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Aflac Total Compensation Case Study

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Aflac Total Compensation Aflac enhances its employees’ total compensation in a variety of ways. Many employers are missing critical opportunities to maximize employee job satisfaction and other organizational outcomes through their total rewards programs. Aflac has not missed the opportunity to increase employee loyalty and productivity. Aflac has merged its total rewards program with many of its own products and services to enhance the total compensation Aflac’s employees receive. Aflac’s total compensation is a mix of financial and non-financial incentives. A well designed total rewards system is a blend of monetary and non-monetary rewards (Heneman, 2007). Part of Aflac’s total rewards is employee compensation. Total compensation can …show more content…

Non-traditional awards can lead to better performance from certain individuals (French & Emerson, 2015). However, many of Aflac’s non-traditional rewards have a dual purpose and aim to recognize employees for activities they participate in outside of work. Overall, employees desire to feel valued by their peers and employers (Gomez-Mejia et al., 2016). Aflac recognizes a volunteer of the month, an employee who is awarded for time spent volunteering with a charity of their choice. The non-traditional employee of the month award communicates to employees that Aflac values serving local communities. Additionally, Aflac has an organizational goal of taking care of its employees and valuing people. Aflac’s career development program is focused on developing employees for their next career at Aflac. As an example, more than 91% of Aflac’s senior vice presidents and above have been promoted through the ranks (Reed, 2009). Aflac has made retaining talent a high priority and has placed an emphasis on developing employees for Aflac’s future …show more content…

Employees work for wages and employers hire employees in order to make a profit (Hajdin, 2005). Romans 4:4 (ESV) states, “Now to the one who works, his wages are not counted as a gift but as his due.” Aflac is fairly compensating its employees with monetary and non-monetary compensation, but compensation is only a small part of an employee’s overall loyalty to an organization. Aflac’s total rewards program adds additional non-monetary compensation to employees, which help to foster loyalty. In the end, the best action Aflac can take to align its HR with strategic organizational goals is constantly improve existing programs and closely monitor the HR environment for new or more attractive benefit

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