Good Example Of Geico Case Study

Published: 2021-06-18 05:48:16
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Category: Health, Life, Communication, Employee

Type of paper: Essay

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Geico has designed several effective strategies in order to satisfy and retain its employees, because the job market is tight and there is a lack of the skilled employees. Such as Geico has introduced reward programs, promoted effective communication, and designed a website so that employees can get the information regarding programs and benefits that the company is offering.

In this paper the association of the total reward program with the Chapter 2 of the textbook, a strategy ensuring the plan of Geico addresses all benefits, the effectiveness of communication that is attached with Geico’s total reward programs, and the improvements that can be made in the reward system if the employees are unhappy are discussed in detail.

1) There are several facets or aspects of the total rewards programs of Geico that are aligned with the total reward program’s benefits described in the Chapter 2 of the textbook. The facets of Geico’s total rewards programs include family and life benefits, time off and leave, health and wellbeing program, and total reward strategy of Geico. Chapter 2 has outlined increased flexibility as an advantage of the total reward program. Geico’s family and life and time off and leave programs are, however, aligned with the benefit of increased flexibility, in a way, that in Geico the employees are given paid holidays, flexible working hours, proper assistance, insurance plan meant for caring and protecting employees for long term basis, and the associate assistance program that give facilitate the employee with in person or phone counseling for three times without any cost. The family and life benefits comprise of programs that ensure maintenance of work-life balance, elder care and the day care referrals, and proper counseling for depression, stress, anxiety. Geico has considered that time off and programs are required in order to promote work-life balance easier for the employee.

Further, Chapter 2 outlines that the benefits package is provided to the employees so that the future of the employees can be ensured. The program of total rewards of Geico is aligned with this benefit in a way that the organization is offering several options in order to preserve the well-being, as well as health of employees. Further, Geico is also offering many options on order to secure the future of employees financially so that they can enjoy a balanced life.

Moreover, Geico’s associate assistance program is aligned with the cost of the turnover rate or the reduced labor cost that is outlined in the Chapter 2. It is aligned in a way that associate assistance program provide adequate support to the employees so that they do not be depressed and stressed out for performing their job, and a work life balance is maintained.

Additionally, heightened visibility in a rigid labor market is also outlined as a biggest advantage. Geico, however, also wants to meet all the need of its employees due to the tight labor market and the shortage of skilled workers. Further, another top advantage that is outlined in Chapter 2 is enhanced profitability, and the programs of Geico such as wealth accumulation, health care, amenities and the perk programs, and education and training programs are aligned with the enhanced profitability. For example, Geico’s education and training program aimed at providing professional and personal growth opportunity to the employees. Further, the amenities and perk program aimed at providing special discounts, services, and benefits to the employees so that their money and time can be saved, and they can enjoy improved standard of living.

2). A strategy that ensures that the plan of Geico addresses all benefits and advantages is to ensure teamwork within the organization. Teamwork paves the way to the effective accomplishment of the work (West, 2012). In this regard, a team can be formed by taking employee from all the departments so that they can give best option for the members of their department, and then these options can be discussed with the rest of the employees in a meeting, and their opinions can be taken. Changes can also be made if the employees are not satisfied. Further, teamwork is required in Geico so that the goals of the company and the needs of employees are fulfilled. In this regard, Geico should train its employees in a way that in the absence of any employee, other employee can perform his duties and related tasks. Additionally, the company should also have employees in order to manage the workload if an employee is absent for emergency or for any personal issue. However, this is also a form of the teamwork as it ensures that all the ends are protected both for the needs of an employer as well as for employees.

Further, proper communication is essential in an organization; the managers should interact with the employees on regular basis so that they become aware of the needs of employees (Boove, Thill, & Chaturvedi, 2009). Additionally, Geico should incorporate the elements of reward program strategically, and ensure their effective delivery for receiving a positive outcome. Geico, however, awards employees that remain loyal by offering them associate assistance program, health and well-being programs, training and education programs, Geico should effectively communicate the benefits attached to these programs to the employees, so that every employee is aware of the rewards they can get on performing their duties effectually and in a responsible manner.

3). The effectiveness of communication that is attached with the total reward programs of Geico based on the descriptions of Website can be analyzed from the fact that they provide information about every program, which gives a basic idea to the employees about which benefits are included in every program. Most of the services of the organizations depend on clear communication when a response is required for litigation regarding the performance of an employee, product use and safety. However, Geico is well aware of competitors, which is its competitive advantage, and it has also designed total reward programs in order to meet the needs of the employees strategically. Adoption of a strategic approach to the communication, however, emphasize on being proactive instead of being reactive or tactical (Cornelissen, 2008). Organizations having strategic plan can respond to the difficult situations in an effective manner, and can explore new opportunities for the business. the communication strategies also help in keeping the stakeholders and employees well intimated that further help in promoting the goodwill. A good and effective communication strategy comprise of the return on investment, improvement in the brand value, efficiency, and reputation.

Geico can ensure improvement in the effective communication of reward system, in a way, that it can provide a link with every benefit program. The link can be further linked to the social media and blogs that help employees to better understand the effectiveness and advantages of every program. These two links serve communication channels and play a significant role in targeting the stakeholders internally as well as externally. However, addressing the use of every channel in a strategic manner is important in order to maintain the consistency of the messages. The communication should be aligned to the objectives of the business and strategies of the organization (Rao, Sivaramakrishna, & Rao, 2008). Any failure in achieving the alignment paves the way to the misunderstanding in the form of poor perception of stakeholder, and loss to the brand value. The employees also want that the information to be available at the fingertips so with the mentioned strategy they become aware of all the benefits, and become capable of of communicating these benefits to the other employees who are not aware, or to those who recently joined the organization.

4). If the employees are unhappy with the current plan then, improvements can be made in the total reward program of Geico. In this case, certain actions should be taken in order address the issues that employees are facing and take effective measure in order to solve these issues. If the employees are not satisfied with the plan then it means that intervention is required and the employees need and the employees need fair and gentle treatment. In this scenario, the employer should motivate and appreciate the employees that they are performing well, and they will be able to get better opportunities and incentives in the future if they continue to provide their useful services to the organization.

The organization should praise the employees and explain they are committed in order to make the things better. Additionally, a second method is to involve a third party in this problem, who considers the opinions from both sides by keeping into consideration the nature of the conflict. The third party gives chance to both the parties (Frey, 2002). It will give chance to the employees so that they can tell their demand, and the party will also give chance to the Geico so that they also describe their viewpoint, and at the end give assistance in order to bridge the conflict and build trust again between the employer and employees. Further, for ensuring improvement Geico can make the commitment that it will change the environment of the organization and make it more friendly and comfortable for all the employees so that they can work effectively and promote innovation in the organization. Moreover, Geico should not consider that termination as a solution to every problem. But, as a matter of fact the answer is in the supervisory activities of every individual that is managing the staff.


In a nutshell, Geico is effectively managing its total reward program, which comprise of the family and life benefits, time off and leave, health and wellbeing program, and total reward strategy. Geico’s family and life and time off and leave programs are, however, aligned with the increased flexibility that is mentioned in Chapter 2 of the book, the associate assistant programs of the company is aligned with the reduced labor cost, and wealth accumulation, health care, amenities and the perk programs, and education and training programs are aligned with the enhanced profitability.

Further, the strategy of the teamwork can help Geico to effectively address the benefits within an organization. Geico should provide a link with each benefit on the website, and further linking this to the blog and social media can provide more information to the employees. Moreover, addressing the issues that the employees are facing, or involving a third party for resolving the dispute can be helpful in making the improvements in the total reward program, and for satisfying dissatisfied employees.


Bovee, C., Thill, John V., & Chaturvedi, M. (2009). Business Communication Today. Dorling Kindersley Private Limited, India
Cornelissen, J. (2008). Corporate Communication: A Guide to Theory and Practice. SAGE Publications Ltd, Singapore
Frey, M. (2002). Alternative Methods of Dispute Resolution. Nelson Education Limited, Canada
Rao, C.A., Sivaramakrishna, K., & Rao, B.P. (2008). Strategic Management and Business Policy, Excel Books, New Delhi
West, Michael A. (2012). Effective Teamwork: Practical Lessons from Organizational Research. John Wiley & Sons, New Jersey

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