Running Header: AFLAC CASE STUDY
Case Study: Aflac
Lindsey McKnight
Liberty University
BUSI 642
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AFLAC CASE STUDY
Benefits and compensation are some of the most sought-after traits in an employer.
Benefits and compensation covers a vast area overseen by human resource management.
Benefits and compensation include monetary reward, paid time off, development programs,
insurance, and nontraditional benefits. All professionals involved in the compensation
management agree that a good benefits program helps to create a motivating environment that
will encourage individuals to look for a job in the organization and remain there (Curcija, 2016).
Aflac is a company that recognizes this importance as well. Aflac reports covering over 50
million people in the world and have identified they need to provide the same protection for their
own internal employees.
Aflac’s own mission states “Treating employees with care, dignity and fairness are
founding principles of Aflac” (Benefits and Business at Aflac and L.L. Bean- SHRM Online,
2009). Aflac has taken upon itself to treat and value their employees just as much as they do
their customers. Aflac embodies the theory the better an organization treats its’ employees the
happier employees are and in turn perform well. One way Aflac treats their employees like their
customers is by giving them the same great insurance protection. Aflac offers the same products
and services to their employees at little or no cost within their benefits and compensation
program. Aflac uses its’ benefits and compensation packages as its’ driving force to hire and
retain employees. Not only do they give employees the same products as they their customer’s
but Aflac also invests in employees by developing their careers, thus representing a total rewards
perspective. Studies show that training and development programs is a win-win proposition
(Lorentz, 2015).
Aflac integrated this system from employee feedback. In 2007, they acknowledged an
internal weakness of retention in employees. In an effort to respond to these factors Aflac
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AFLAC CASE STUDY
implemented an improved communication structure to receive employee feedback on total
rewards. Aflac noticed total reward systems in other companies was a major strength in retaining
employees. Since, Aflac has continuously changed and evolved their total rewards by providing
value-added programs derived from the communication with their employees. Aflac has taken
communication and transformed it into a major internal strength. A major external weakness is
the ability to manage cost-effective benefits while maintaining employee service like Aflac has.
With the evolution of Aflac’s benefits came improved traditional and nontraditional
benefits. Traditional benefits provided by employers are health insurance, retirement plans,
profit-sharing, or housing. However, studies show today this may not be enough. Aflac
Happiness Report published 1 out of 5 employees want additional non-health offers, 24% want
flex time, and snacks in the break room or gym reimbursements are becoming more popular to
satisfy employees (Mullins, 2017). Some of the nontraditional benefits Aflac offers to appeal to
employees are onsite gyms and child-care facilities. Other examples of nontraditional benefits
organizations are adapting include but are not limited to: food discounts, college tuition, wellness
stipends, gender confirming surgery, pet benefits, counseling, and new parent programs.
Aflac has aligned its’ benefits with corporate values by protecting and caring for
employees as if they are their own customers. In Aflac’s eyes their employees are just as
important as their customers which is why they have gone to great lengths to revamp their total
rewards system. One recommendation for Aflac is to implement a counseling plan as an outlet
for employee mental health. Problems such as depression and stress adversely affect job
performance and organizational effectiveness with serious consequences like work impairment,
absenteeism, low productivity, accidents and conflicts in the workplace (Rao, Sekhar, & Rao,
2013). Counseling benefits are a nontraditional benefit that has become popular with employers
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AFLAC CASE STUDY
to ensure mental and physical health of their employees. This would support Aflac’s principle to
provide an enriching and rewarding workplace for employees.
In conclusion, Aflac is leading in the total rewards program by offering tradition benefits,
non-traditional benefits, and development programs for employees. Continuous improvement
will only thrust their advantage over other insurance companies and their employee benefits.
This is crucial to retain employees in an industry that turns over easily. Biblical integration is
imperative for keeping ethical practices in business operations. Bible verse 3 John 1:2 pairs
entirely with Aflac’s outlook on a total rewards package. It reads “Beloved, I pray that all may
go well with you and that you may be in good health, as it goes well with your soul”. Aflac has
gone beyond traditional benefits to ensure employee health and happiness. Companies who use
this verse as a guide line will have high employee satisfaction and steeper retention rate.
References
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AFLAC CASE STUDY
Aflac Supplemental Insurance. (2009). Retrieved February 27, 2018, from
https://www.aflac.com/about-aflac/our-company/default.aspx
Benefits and Business at Aflac and L.L. Bean - SHRM Online. (n.d.). Retrieved February 28,
2018, from https://www.bing.com/cr?
IG=21A9AE70A52642FCBF399DD5F7C9811B&CID=219BDB5779906DDA39F9D0F
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nE3__pLxD7IXkN1guvFcSsTSG_Zo_kK9UyA4&v=1&r=https%3a%2f
%2fwww.shrm.org%2facademicinitiatives%2funiversities%2fteachingresources
%2fDocuments%2f09-
0235_Benefits_At_AFLAC_and_LLBean_SW_FNL.pdf&p=DevEx,5066.1
Curcija, S. (2016). IMPORTANCE OF BENEFITS IN ATTRACTING AND RETAINING
EMPLOYEES WITHIN A MILITARY ORGANIZATION. Paper presented at the 65-73.
Retrieved from http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1815362114?accountid=120851
Lorentz, C. (2015, August 7). Meeting the needs of today's workforce: employers benefit from
public-private employee training programs. New Hampshire Business Review, 37(16),
78+. Retrieved from
http://link.galegroup.com.ezproxy.liberty.edu/apps/doc/A427000517/ITOF?
u=vic_liberty&sid=ITOF&xid=a9b679cf
Mccollum, G. (2014). Compensation and Benefits: Positive Trends. Journal of the Academy of
Nutrition and Dietetics, 114(1), 9. doi:10.1016/j.jand.2013.11.004
Mullins, B. (2017, 06). Making employee happiness A priority: Top 4 tips to help raise happiness
levels. Employee Benefits and Wellness Excellence Essentials, Retrieved from
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AFLAC CASE STUDY
http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1952672491?accountid=12085
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management gaining a competitive advantage(10th ed.). New York, NY: McGraw-Hill
Education.
Rao, T. V. A., Sekhar, P. R., & Rao, B. V. (2013). Employee counseling needs: The influence of
personal correlates. Indian Journal of Health and Wellbeing, 4(8), 1529-1532. Retrieved
from http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1611832320?accountid=12085
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