Total Rewards Aflac Case Study

Case Study 3: Total Rewards & Aflac
The total rewards approach challenges the human resources (HR) professional to look at the entirety of the work experience, not just the traditional compensation and benefits packages, when developing strategies to recruit, retain, and motivate employees (Giancola, 2009; Pregnolato, Bussin, & Schlechter, 2017; Stoskopf, 2004). Total rewards approach has five components – base compensation, benefits, performance and recognition (Giancola, 2009; Gomez-Mejia, Balkin, & Cardy, 2016; Pregnolato, et al., 2017; Stoskopf, 2004), work-life balance, and development and career opportunities (Giancola, 2009; Pregnolato, et al., 2017; Stoskopf, 2004). These components, when integrated into a comprehensive total rewards

strategy, have a greater impact on recruitment and retention than any one individual component considered individually (Stoskopf, 2004). The following shows how Aflac strategically uses total compensation to remain a leader in the insurance industry.
Aflac’s Total Rewards Strategy
To enhance the total compensation, Aflac Incorporated, a Fortune 500 insurance company, provides its products to employees at little or no cost (Reed, 2009). For example, Aflac provides their employees with company-paid cancer policies and life insurance, as well as subsidized accident protection insurance (Reed, 2009). Aflac also provides total rewards that are in line with its philanthropic goals (see examples of traditional and non-traditional below). In addition, Aflac provides extensive career development services for its employees.
Aflac understands the commitment to people drives success through the integration of its total rewards program.

Internally, organizational outcomes associated with human resources (HR) are reflected in Aflac’s recruiting, retention, diversity, and training efforts. Externally, Aflac is focused on finding and retaining qualified individuals. Graves, vice president of HR, explains that the needs of Aflac’s employees is the driving factor behind its total reward programs (Reed, 2009). From a benefits perspective, Aflac strives to provide programs that improve job satisfaction, provide opportunities for career development, and support organizational initiatives (Reed, 2009).
In addition to competitive salaries, Aflac uses a combination of traditional and non-traditional rewards to meet the needs of its multi-generational workforce. From providing on-site child care, to fitness centers and discounts on services, Aflac strives to create a positive, productive environment.
The cornerstone of Aflac’s success has been the value it places in people and its commitment to treating its employees with “care, dignity and fairness” (Reed, 2009). For example, is committed to supporting the community and dedicates resources in four areas (education, health, the arts, and youth). One example of a non-traditional reward that aligns with Aflac’s values and mission is the “Volunteer of the Month,” in which one employee is recognized for the time spent in charitable service (Reed, 2009).

Recommendations
Recruitment and retention has been affected by globalization, as organizations are managing more diverse work groups (Pregnolato, et al., 2017). Research shows a relationship between perceived organizational support, total reward components, and demographical variables (Pregnolato, et al., 2017; Smit, Stanz, & Bussin, 2015).
For example, while the thrust of Aflac’s efforts has been in providing benefits, career advancement, and working, for most demographic groups, work-life balance is as important or more important than career advancement (Pregnolato, et al., 2017). Aflec’s HR should note that the ideal total reward approach includes both financial and nonfinancial rewards that are consistent with preferences to age, gender, and race cohorts (Pregnolato, et al., 2017).