Running head: BUSI 642: CASE STUDY PAPER 1
BUSI 642: Case Study Paper
BUSI 642
Liberty University
BUSI 642: CASE STUDY PAPER 2
BUSI 642: Case Study Paper
How Aflac Uses Its Own Products or Services to Enhance the Total Compensation for Its
Employees
Anand (2017) discussed that with health insurance rising, it is likely that employee
compensation will be affected through lower wages or employees giving towards their health
insurance premiums. While other insurance companies may react to higher health costs in this
way, it does not appear Aflac has any intentions to do so. Aflac uses its own products or services
to enhance the total compensation for its employees through aiming to distribute all of its 4,500
employees with quality service. Aflac is aware of where it stands with consumers, considering it
is ahead of the competition based on the viewpoint of consumer’s. Aflac does not want to stop
there, though. Aflac wants to not only be ahead of the curve from a consumer’s viewpoint but as
well as from an employee’s viewpoint. Aflac strives to do so through the way it treats its
employees. The vice president of human resources, Casey Graves, highlights what motivates
Aflac’s total rewards programs. What motivate Aflac’s total rewards programs are the needs of
its employees. In 2007 Aflac directed employee satisfaction surveys. The results of the surveys
were not consistent, but this inconsistency did not continue throughout Aflac’s response: “to
give employees what they need from a benefits perspective while balancing the cost, all within a
rapid period of growth” (Reed, 2009, p. 3). Aflac wanted to enhance its company’s job
satisfaction, so Aflac created value-added programs:
1. Giving its employees Aflac products at little to no cost
2. Giving its employees total rewards that align with charitable goals
3. Providing its employees with thorough employee training and leadership programs to
give its employees opportunities for their next career level
BUSI 642: CASE STUDY PAPER 3
The Internal and External Strengths and Weaknesses Identified and How Aflac Responded
to These Factors from a Total Rewards Perspective
Every organization has their fair share of strengths and weaknesses; Aflac is no different.
Aflac’s strength is its reputation. The survey results the organization gathers showed that around
90 percent of their employees stay with their job at Aflac because of Aflac’s reputation.
Reputation is a crucial factor for companies, so the fact that Aflac’s reputation is a big part of the
driving force of why its employees stay with their company is exceptional. Aflac does not have
the reputation it has because of luck. Aflac puts much effort into keeping its employees the
priority, which results in a positive and happy workplace. Something found in the case study that
greatly stood out was that Aflac creates a benefits package that mirrors the requirements of a
“multi-generational workforce”. This proves that Aflac is aware that each of its employees has
different needs, so they build a benefits package that applies to the various needs of its
employees. Every employee has his or her own life events. Life events can range from having a
baby, sickness, death in the family, etc. The benefits organizations offer their employees can
greatly influence how an organization’s employees can cope and get through these events
(Purdon, 2018, p. 12). Aflac’s phenomenal benefits gives their organization much value to
employees and is what has made their company reputation stand strong throughout the years.
A weakness Aflac faces is the cost of providing their employees health insurance. The
study highlights the struggle organizations have with cost containment. What it cost to provide
health insurance continues to exceed inflation. Premiums of employer health insurance
amplified by 6.1% in 2007. Noe, Hollenbeck, Gerhart & Wright (2017) states, “Controlling
labor costs is not possible without controlling benefits costs” (p. 536). Aflac responded to this by
displaying their thoughts and opinions through standing by “health care cost containment is an
BUSI 642: CASE STUDY PAPER 4
employer and employee shared responsibility”. Aflac strives to provide its employees with
benefits while remaining cost-conscious. Aflac is aware of the importance of providing great
employee benefits, which is why Aflac has always continued to offer its employees with great
benefits.
Examples of Traditional and Non-traditional Rewards and How They Are Used to Meet
Organizational Objectives
Companies can choose to take part in traditional and non-traditional rewards in order to
reach their organizational objectives. Rewards often act as a driving factor for organizations’
employees to achieve personal and company goals. The rewards companies choose to provide
their employees with can greatly impact the success of an organization (Day, Holladay, Johnson,
& Barron, 2014, p. 76). Above a list of programs Aflac added to their organization was stated, so
below is the same list for easier reference.
1. Giving its employees Aflac products at little to no cost
2. Giving its employees total rewards that align with charitable goals
3. Providing its employees with thorough employee training and leadership programs to
give its employees opportunities for their next career level
Aflac also provides its employees with one of the biggest on-site childcare facilities, on-site
fitness centers, service discounts, and sponsors days of outdoor exploration. When
employees feel valued and appreciated they work harder to achieve the company’s
objectives. Aflac strives to provide its employees with quality service, which is greatly
proven through the lengths the organization is willing to go to provide exceptional rewards
and benefits for its employees.
How Aflac Aligns Its Benefits With Its Corporate Values
BUSI 642: CASE STUDY PAPER 5
Aflac corporate philosophy: “Since its beginning, Aflac has believed that the best way to
succeed in our business is to value people. Treating employees with care, dignity and fairness
are founding principles of Aflac.” Aflac does not make a statement such as this without backing
it up with wonderful employee benefits. Ensuring all employees receive proper benefits is what
has led Aflac to be so successful. Giving its employees health insurance at little to no cost,
providing child care, offering training that will further the employees’ careers, etc. all displays
how firm Aflac stands by valuing people. Organizations do not have success rates or great
reputations through not aligning its benefits with its corporate values. This is proof that Aflac
does exactly that through not only valuing its customers but the people it employees as well.
This same philosophy can apply to Christians across the world. 1 Peter 3:8 (ESV) reads,
“Finally, all of you, have unity of mind, sympathy, brotherly love, a tender heart, and a humble
mind.” If Christians claim to love the Lord but they do not love each other then they are simply
not standing by their values. Many people have hindered the reputation of Christians because
their actions do not align with the values and beliefs taught throughout scripture. If Christians
want to change lives, further the Kingdom of God, and give God all of the glory, then they have
to not only claim to be Christians but act as His Word states to act. Christians should serve
others, love others, and share God’s grace and mercy with others. Matthew 5:16 (ESV) states,
“In the same way, let your light shine before others, so that they may see your good works and
give glory to your Father who is in heaven.”
Recommendations Regarding an Expansion of the Benefits Programs Offered at Aflac that
Would Further Align HR With the Accomplishment of Organizational Goals and Values
BUSI 642: CASE STUDY PAPER 6
A recommendation for Aflac to be able to further align the company with its
organizational goals and values is to create a more in-depth rewards program. An in-depth
rewards program that rewards its employees when meeting organizational goals motivates
employees, which ultimately leads to better production and success. A rewards program that
takes notice when employees are doing more than asked and helping the organization get to
where they strive to be allows employees to feel noticed and appreciated. Cao, Nsakanda &
Diaby (2015) highlights that reward programs are also a great technique for when promotions are
about to take place. Employees are able to turn in their reward points and employers are the able
to compare the productivity amongst their employees (p. 1147). Aflac does a great job offering
its employees with numerous benefits and rewards, but a rewards program such as this would
bring even more success to its organization. Employees could receive rewards when they meet
weekly, monthly or yearly goals, when they go out of their way to assist a coworker, when
customers leave a positive review after doing business with an employee, etc. Receiving rewards
throughout completing daily tasks motivates employees to be their best selves for the
organization, which then also leads organizations such as Aflac to be the best it can be.
BUSI 642: CASE STUDY PAPER 7
References
Anand, P. (2017). Health insurances costs and employee compensation: evidence from the
national compensation survey. Health economics, 26(12), 1601-1616. Retrieved from
https://doi-org.ezproxy.liberty.edu/10.1002/hec.3452
Cao, Y., Nsakanda, A. L., & Diaby, M. (2015). Planning the supply of rewards with cooperative
promotion considerations in coalition loyalty programmes management. The Journal of
the Operational Research Society, 66(7), 1140-1154.
doi:http://dx.doi.org.ezproxy.liberty.edu/10.1057/jors.2014.81
Day, J., Holladay, C., Johnson, S., & Barron, L. (2014). Organizational rewards: considering
employee need in allocation. Personnel review, 43(1), 74-95. Retrieved from
https://search-proquest-com.ezproxy.liberty.edu/docview/1507639830?pq-
origsite=summon&accountid=12085
Noe, R.A., Hollenbeck, J.R., Gerhart, B., & Wright, P.M. (2017) Human resource management:
Gaining a competitive advantage (10th edition) New York, NY: McGraw-Hill.
Purdon, E. (2018). Employee benefits: thinking beyond the paycheck. Journal of financial
service professionals, 72(3), 11-15. Retrieved from http://ezproxy.liberty.edu/login?
url=http://search.ebscohost.com/login.aspx?
direct=true&db=bth&AN=129329403&site=ehost-live&scope=site
Powered by TCPDF (www.tcpdf.org)
