Case Study – AFLAC
Joshua Anderson
February 26, 2023
BUSI642: Contemporary Issues in Human Resource Management
Dr. Tracy Wooten
It is important to realize that, as an employer, employees today are looking for more than just
a paycheck to compensate them for their work. Establishing a competitive Total Rewards
Package is key to recruiting and keeping the best employees. When those employees are satisfied
that they are being fully compensated for their contributions, they will ultimately work harder
and produce better results for the employer. Doing so will make everyone happier and more
profitable in the long run. The way that the HR team at AFLAC has decided to shape a Total
Rewards Package for their employees has shown that senior management cares about their
employees and is willing to go the extra mile to keep the employees engaged and producing their
best work on a daily basis (Reed).
When Paul was writing to the Galatians, he stated that “let us not be weary in well doing: for
in due season we shall reap, if we faint not” (Galatians 6:9, KJV). When thinking of this,
employees should be looking at the Total Rewards Package that they are receiving and knowing
that they are getting what they deserved. When an employee is doing their best, they are going to
get the best that the employer can give. HR and management should also understand that they
need to be doing the best for their employees as well. Often times, employees are working well
beyond their typically expected forty hours each week. It is up to the management team to
recognize that and task the HR team to provide the best package that they can feasibly provide.
Doing so will keep those great employees motivated and working hard, allowing them to reap the
rewards of their efforts.
AFLAC has taken advantage of its position in the market to create a Total Rewards Package
that not many companies can match. Being able to provide different levels of insurance
packages, including paid premiums for life, cancer, and accident policies is not something that
many other companies are willing or able to do (Reed). Because of this, the turnover rate at
AFLAC is much lower than the industry average. With the ever-increasing cost of insurance,
many employees can easily see why maintaining their employment at AFLAC as a priority.
When a great benefit is provided, great work is going to be produced. Additionally, because
AFLAC is consistently promoting from within, it is essential that they provide a quality training
benefit. The level of training and development that AFLAC provides its employees shows that
they care. 91% of its senior level management has been promoted internally, therefore it shows
to employees that are hoping to move up the ranks that AFLAC cares for the development of
their staff. Between the financial benefits that AFLAC provides and the training and
development, an employee that wants to grow and flourish would be wise to stay long-term with
AFLAC.
In the past, employers only worried about employee pay. If a good employee was willing to
move on, they would just be given more money. Today, though, employees are looking for more
and it is up to their employers to realize this. The nonmonetary rewards are what a truly good
employee wants – whether it is additional training, a new title, or even just public recognition – it
is important to reward them with these things (Bradford, 2018). When an employee is just
searching for a bigger paycheck, it should be seen that this employee may just jump from job to
job. Keeping that great employee on the job with intrinsic rewards often shows a better side of
the employee to the employer. It also shows that they are willing to go that extra mile. AFLAC
also realizes this and shows it by recognizing their employees that are stepping up and
volunteering their time and efforts in their philanthropic pursuits.
Creating a balance between the intrinsic rewards, such as recognizing an outstanding
volunteer, and the extrinsic rewards, including a bonus, is an issue that HR is suited to do. There
will always be the employee that is only searching out a bigger paycheck and no psychological
boost is ever going to outweigh a bonus or raise. Even with an employee that thrives on those
intrinsic awards wants to get a little extra in their paycheck. It is important, therefore, to keep up
with the industry-wide trends in order to keep everyone satisfied (Elrayah & Semlali, 2023). In
many industries, it is an extra bonus and maybe a chance to invest in the company that keeps an
employee around. With AFLAC, they do have their extra coverage that they give their
employees. As premiums continue to rise, it can be difficult for AFLAC to provide significant
bonuses or raises while also keeping those insurance plans fully funded for their employees. For
the employees of AFLAC, though, it seems that they continue to be satisfied with the Total
Rewards Package that they have.
Employers are more than understanding of their employee’s desire to fulfill their basic needs
set out by Maslow in his Hierarchy of Needs. Providing the basics allows the employees to meet
a certain level of needs. Today, though, many employees are looking to climb their personal
ladder to satisfy more of their own needs. It is up to employers to realize this. Yes, providing a
larger paycheck does allow for more of these needs to be met, but employees need a motivation
to make the effort to get these rewards (Victor & Hoole, 2021). With AFLAC providing for fully
funded insurance policies, employees have one less thing that they have to worry about and can
focus on different levels of needs to become satisfied.
In the end, for the employer it is about keeping the best employees around and for the
employee, it’s about being truly satisfied. Employers are a resource for a company that allows it
to thrive and grow. If an employer can cultivate that relationship, both they and the employee can
be happy. Developing the job to allow for that growth will keep the employee with the company
for an extended period of time (Noe et al., 2023). It is only when the employee does not feel
valued will they attempt to move on. The HR team and senior level management at AFLAC have
shown that they understand this. They continue to evolve their Total Rewards Package to benefit
their employees. Their employees continue to show their satisfaction by staying with the
company, keeping their turnover rate lower than the industry average. It is the Total Rewards
package that keeps these employees motivated and will continue to do so into the future (Rai et
al., 2019).
Works Cited
Bradford. (2018). How to positively influence the attitudes and behaviors of employees. Human
Resource Management International Digest, 26(5), 11–13. https://doi.org/10.1108/hrmid-
04-2018-0073
Elrayah, M., & Semlali, Y. (2023). Sustainable total reward strategies for talented employees’
sustainable performance, satisfaction, and motivation: Evidence from the educational
sector. Sustainability, 15(2), 1605. https://doi.org/10.3390/su15021605
Noe, R. A., Hollenbeck, J. R., Gerhart, B. A., & Wright, P. M. (2023). Approached to employee
development (13th ed., pp. 400–418). essay, McGraw Hill.
King James Bible. (2017). King James Bible Online. https://www.kingjamesbibleonline.org/
(Original work published 1769).
Rai, A., Ghosh, P., & Dutta, T. (2019). Total rewards to enhance employees’ intention to stay:
Does perception of Justice play any role? Evidence-Based HRM: a Global Forum for
Empirical Scholarship, 7(3), 262–280. https://doi.org/10.1108/ebhrm-07-2018-0045
Reed, S. M. (n.d.). Benefits and Business at Aflac and L.L. Bean. In Total Rewards Student
Handbook. essay, Society of Human Resource Management. Retrieved from
file:///C:/Users/josha/Downloads/_Membership_student-resources_Documents_09-
0235_Benefits_At_AFLAC_and_LLBean_SW_FNL.pdf.
