Running head: AFLAC TOTAL REWARD PROGRAM
Aflac Total Reward Program
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AFLAC TOTAL REWARD PROGRAM 2
Aflac Total Reward Program
Introduction
Today, multinational companies have experienced challenges in dealing with a
competitive environment, staff attrition, and financial problems. Notably, companies have relied
on their human resources in addressing challenges associated with the globalized market.
Particularly, Aflac utilizes a total rewards strategy in motivating and satisfying its employees.
The company’s total rewards strategy has elements like products and services, non-traditional
rewards, and traditional rewards. Aflac has relied on its total rewards strategy boosting its
competitiveness in the globalized insurance business.
The Products or Services Aflac Utilizes in Enhancing Employee Total Compensation
The human resource management (HRM) team at Aflac offers employees free insurance
covers, social support, and career development benefits. First, the company offers 100% cancer
insurance cover to its staff as a part of compensation (Hamukwaya & Yazdanifard, 2014). The
strategy allows employees to access cancer insurance products free of charge. Additional Aflac
products that HRM allows workers to access at no cost include accident insurance and life
insurance covers. The company also demonstrated social commitment to its team of employees
by supporting them in achieving work-life balance. Aflac utilizes the social support program to
demonstrate its recognition of employees’ lifestyles significance to its success strategy. For
example, the company developed a large on-site childcare facility for its employees. Currently,
the company’s on-site childcare facility is the biggest in the USA (Reed, 2009). Finally, the
company offers career development opportunity for its employees through training and
engagement. The career development program enables workers to gain knowledge and skills that
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maximize their competitiveness in the job market (Hamukwaya & Yazdanifard, 2014). The
company also promotes its trained employees to senior positions in its workplace.
Responding to Internal and External Strengths and Weaknesses from a Total Rewards
Perspective
Aflac capitalizes on its internal strengths and mitigates its internal weaknesses to boost its
competitiveness in the globalized insurance business. Employee compensation and engagement
occur as a major internal strength for the insurance company (Mabaso & Dlamini, 2017). In this
case, the company relies on its flat organizational structure and open communication in
maximizing employee engagement in decision-making and problem-solving processes. The
company equips its employees and managers with collaboration, innovation, and communication
skills to promote sharing ideas in its workplace. The company also utilized a good compensation
program to attract talented individuals to its workforce (Noe, Hollenbeck, Gerhart & Wright,
2017). However, the company has internal weaknesses like an inefficient work environment,
high-cost structure, and huge debt burdens. The inefficient work environment reduces the
company’s capacity to utilize available resources properly. The debt burden has also exposed the
company to a threat of bankruptcy (Hiebing, Cooper & Wehrenberg, 2012). Moreover, utilizing
a high-cost structure reduces the company’s profit margins. Today, the company has addressed
the internal weaknesses using its team skilled and experienced employees.
The company also focuses on capitalizing on its external strengths and mitigating its
external threats in promoting its success in the globalized insurance business. The company has
external strengths like a widely recognized brand and robust compensation package. The brand
popularity has allowed the company to increase premium rates without losing its loyal clients. A
strong brand image has also allowed the company to attract new clients, thus increasing its
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revenues. The company relies on its strong compensation program promoting employee loyalty.
At this point, lowering employee turnover using strong compensation package increases the
company’s competitiveness in the market. However, the company has experienced
cannibalization problems while tackling competitive pressure from other established companies
and new entrants in the insurance business.
Traditional and Non-traditional Rewards
Aflac utilizes traditional and non-traditional rewards in motivating and satisfying its
employees. The traditional rewards program for Aflac combines both the monetary and
performance improvement benefits (Antoni, Baeten, Perkins, Shaw & Vartiainen, 2017).
Performance improvement benefits the company offers to its clients are career development
(coaching and training) and verbal appreciation. The monetary category of traditional rewards in
the company includes a pension scheme, medical insurance plan, and attractive salary. Non-
traditional rewards available in the company include financial planning services, childcare
assistance, mentoring and coaching, paid meals, fitness center, and counseling services (Rafique,
Qureshi, Pirzada, Badar & Shahzadi 2015). Generally, the rewards programs allow the company
to reduce employee turnover and increase their productivity.
Aligning Compensation with Corporate Values
Aflac relies on its strong compensation program in implementing its corporate values.
Notably, the company’s management observes that treating its employees with dignity, respect,
fairness, and care can increase its chances for success. For instance, offer work-life balance
opportunities to employees demonstrated the company’s ability to honor its dignity and fairness
values (Reed, 2009). Fairness is also demonstrated in the company’s effort to offer employees
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high salaries. Health insurance and life insurance benefits packages indicate that the company
cares for its employees. Furthermore, training, promotion, and engagement occur as a display of
respect to employees. Generally, treating employees well allows the company to attract and
retain talent and accomplish its corporate social responsibility objectives.
Recommendation
Aflac needs to generate innovative strategies for improving its compensation program to
deal with the competitive insurance industry effectively. Aflac should continue treating its
employees as its key asset in its success mission. The company’s management should focus on
creating a strong compensation plan that can support it in accomplishing its goals of profitability
and competitiveness. For example, the company can improve its benefits packages to maximize
employee welfare and gratification. In this regard, the company may consider extending its
insurance coverage to children and spouses of its workers. The company should also design
special rewards for its excellently performing employees.
Conclusion
A strong compensation program has allowed Aflac to utilize its workforce as a tool for
competitiveness. The company utilizes the compensation program to increase the welfare and
satisfaction of its employees. Combining traditional and non-traditional rewards enables the
company to reduce employees’ turnover and increase their productivity.
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References
Antoni, C. H., Baeten, X., Perkins, S. J., Shaw, J. D., & Vartiainen, M. (2017). Linking
Employee Motivation and Organizational Performance. Journal of Personnel
Psychology, 16(2), 57-60. Retrieved from
https://econtent.hogrefe.com/doi/full/10.1027/1866-5888/a000187
Hamukwaya,, S. I., & Yazdanifard, R. (2014). How a Proper Performance Related Reward
System Can Contribute to Work Performance Excellence. Open Journal of Business and
Management, 2, 189-194.
Hiebing, R. G., Cooper, S. W., & Wehrenberg, S. (2012). The successful marketing plan: How to
create dynamic, results-oriented marketing. New York, NY: McGraw-Hill.
Mabaso, C. M., & Dlamini, B. I. (2017). Impact of Compensation and Benefits on Job
Satisfaction. Research Journal of Business Management, 11(2), 80-90. Retrieved from
https://www.researchgate.net/publication/325959515_Impact_of_Compensation_and_Be
nefits_on_Job_Satisfaction
Noe, R. A., Hollenbeck, J. R., Gerhart,, & Wright, P. M. (2017). Human Resource Management:
Gaining a Competitive Advantage (10th ed.). New York, NY: McGraw-Hill.
Rafique, S., Qureshi, M. M., Pirzada, S. S., Badar, M., & Shahzadi, I. (2015). Role of
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Compensation Management in Balancing the Employees Relationship. Journal of
Resources Development and Management, 8, 27-35. Retrieved from
https://www.iiste.org/Journals/index.php/JRDM/article/download/22805/22870
Reed, S. M. (2009). Benefits and business at Aflac and L.L. Bean. Society for Human Resource
Management.
