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Products or Services
Aflac offers its employees with its products at a reduced or no cost in order to
enhance its total compensation. These products may include company subsidized accident
protection insurance, which is an extra layer of protection that provides employees with cash
when they undergo unexpected, qualifying accident to cover any extra out-of-pocket
expenditure related to the injury (Nzyoka & Orwa, 2017). Aflac also has company-paid
cancer policy because it understands that employees can be affected emotionally, physically,
and financially in the event that their income is compromised after being diagnosed with
cancer. Consequently, the company also has employer-paid life insurance because they
understand that financial protection is highly associated with higher productivity. Aflac
provides resources to support its employees in developing their career and leadership skills to
keep up with its strategic growth goals. This, in turn, allows them to move through the ranks
more easily.
Internal Strengths and Weaknesses
Strengths
Aflac has established benefit packages that mirror the needs of a multi-generational
workforce. With this in place, the need for employees in the varying generations is taken care
of, meaning that they will be happy and contented with when working at Aflac. In turn, this
working environment allows room for multiple perspectives, which can be easily shared
within and across teams to bring a wide range of abilities and knowledge to support
innovation (Ahmed & Ahmed, 2019). This aspect also encourages problem-solving abilities
considering that the diverse skills and perspectives drive creative solutions to problems.
Weaknesses
Aflac has numerous weaknesses that put it at a vulnerable position with its
competitors. Even though Aflac Incorporated is a general business holding firm and operates
as a management firm in supervising the operations of its subsidiaries through the provision
of management services and ensuring the availability of capital, it has failed to conduct
financial planning efficiently and properly. This is because the present asset ratio and liquid
asset ratio show that the firm can do financial planning more effectively that the way it is
doing now (Muse & Wadsworth, 2018). Consequently, the firm has not been successful at
incorporating companies with a diverse work culture. These weaknesses thus put it in a
vulnerable situation and, in the process, reduces its competitive advantage. The company has
responded to these factors by providing intensive learning programs that focus on teaching
employees how to conduct financial planning effectively. It also offers total rewards in line
with philosophic goals that aim at dedicating resources to efforts that support the
community's art, health, and education.
External Opportunity and Threats
Opportunity
Aflac has numerous opportunities that it can put in place to enhance its performance
in the future. It can decide to maximize on new customers from the online platform by
understating its clients better and serving their needs using big data analysis (Noe,
Hollenbeck, Gerhart & Wright, 2021). With this in place, it can maximize on offering good
total compensation to its employees.
Threats
Considering that the firm operates in different countries, it is highly exposed to
currency fluctuations, particularly given the volatile political environment in the different
markets worldwide. This, together with the overwhelming rising pay level steered by
movements such as $ 15 per hour, has placed the company in a vulnerable situation. Aflac
understands that cost-containment is important in dealing with employees' benefits, and as
such, its communication to its workers is that the health care cost containment is both an
employer and employee's shared responsibility.
Traditional and Non-Traditional Rewards
Aflac has incorporated both traditional and non-traditional benefits to its employees.
Despite providing incorporating pension contributions, private medical insurance, and life
insurance, it also offers non-traditional benefits (Noe, Hollenbeck, Gerhart & Wright, 2021).
These non-traditional benefits may include outdoor activities, on-site fitness centers, and
discounts, paying 100 percent of its workers premium for its groundbreaking cancer
insurance as per the firm’s philanthropic commitment and equipping them with skills and
knowledge in line with their career and leadership.
Corporate Value
Aflac believes the only way to remain competitive in the insurance business is
through valuing people, including its customers, stakeholders, employees, and other vital
partners. With this in mind, it has established ways of treating its employees with fairness and
dignity. It understands that to remain competitive, it has to design competitive total rewards
that attract and retain a strong and diverse workforce with unique needs and talents.
Therefore, in line with its corporate values, its total reward should focus on employees' peace
of mind, security, and comfort. With this in place the company will adhere to Christian
teaching and values because Leviticus 19:13 says, “Do not defraud or rob your neighbor. Do
not hold back the wages of a hired worker overnight” (Holy Bible: New International
Version, 1984).
Recommendations
For Aflac to align HR with the goals and values, it has to focus on employee well-
being. It should include employee's well-being programs, including gym membership and
healthy meal options, for which money is a saving strategy. Aflac can also focus on offering
more vacation time and more remote work options. Aflac should also develop total rewards
that focus on employee recognition and understand that employee recognition can go beyond
incentive because employee recognition normally includes profound changes in worker's
behavior and the firm.
References
Ahmed, M., & Ahmed, A. B. (2019). The impact of indirect compensation on employee
performance: An overview. Public policy and administration research, 4(6), 27-30.
Fisher, J. G., Maines, L. A., Peffer, S. A., & Sprinkle, G. B. (2020). An experimental
investigation of employer discretion in employee performance evaluation and
compensation. The Accounting Review, 80(2), 563-583.
Holy Bible: New International Version. (1984). International Bible Society
Muse, L. A., & Wadsworth, L. L. (2018). An examination of traditional versus non‐
traditional benefits. Journal of Managerial Psychology.
Noe. R., Hollenbeck. J., Gerhart. B., & Wright. P., (2021) Human Resource Management:
Gaining a Competitive Advantage. New York, NY : McGraw-Hill Education.
Nzyoka, C. M., & Orwa, B. H. (2017). The relationship between Total compensation and
employee performance in the insurance industry, case of Mayfair insurance company
limited. Psychology and Behavioral Sciences, 5(1), 20-36.
