Aflac's Three Components Of Compensation
Due to globalization and specialization, talented and desirable employees are a commodity. Companies compete with other companies in the current hiring market using compensation packages to attract these employees. Total compensation (or components thereof) is perhaps one of the leading reasons for a person to choose one company over another. For some, compensation is the sole reason for engaging in employment while others are more interested in the benefits. Gomez-Mejia, Balkin, and Cardy (2016) explain compensation (notably the greatest expenditure for most companies) has three components: the base rate (a fixed amount paid on a regular interval), incentives (performance reward system), and benefits (indirect financial remuneration). Total
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Reed (2009) cited several organizational objectives. Aflac’s philosophy states the founding principles are “treating employees with care, dignity and fairness” (2009, p. 2). The organizational mission is to use innovative marketing to offer a quality product at a competitive price. Aflac’s guiding principles are to competitively offer quality using new technology, increase value for the shareholders, provide agents with quality service, and maintain a developmental and rewarding environment for employees. Aflac’s ideology manifests employee …show more content…
Biddle (2015) declared that while all employees are entitled to benefits, only those meeting or exceeding performance goals receive rewards; rewards can be financial (bonuses, paid time off, stock options, or profit sharing) or non-financial (flexible schedules, feedback, work environment, and development). According to Graves, compensation and benefits vice president of human resources, employee’s needs influence the company’s total rewards programs (Reed, 2009). Aflac has several attractive benefits, but according to Biddle’s explanation of rewards, there are fewer rewards. A traditional reward offered is profit sharing and is an exemplification of the guiding principle to “provide an enriching and rewarding workplace for our employees” (Reed, 2009, p. 3). The non-traditional rewards include promoting from within and volunteer recognition. Promoting from within applies to the philosophy of treating employees with dignity and fairness and the guiding principle of building better value for the stockholders. Rewarding employees for charity work applies to the guiding principle of an enriching and rewarding
Reed (2009) cited several organizational objectives. Aflac’s philosophy states the founding principles are “treating employees with care, dignity and fairness” (2009, p. 2). The organizational mission is to use innovative marketing to offer a quality product at a competitive price. Aflac’s guiding principles are to competitively offer quality using new technology, increase value for the shareholders, provide agents with quality service, and maintain a developmental and rewarding environment for employees. Aflac’s ideology manifests employee …show more content…
Biddle (2015) declared that while all employees are entitled to benefits, only those meeting or exceeding performance goals receive rewards; rewards can be financial (bonuses, paid time off, stock options, or profit sharing) or non-financial (flexible schedules, feedback, work environment, and development). According to Graves, compensation and benefits vice president of human resources, employee’s needs influence the company’s total rewards programs (Reed, 2009). Aflac has several attractive benefits, but according to Biddle’s explanation of rewards, there are fewer rewards. A traditional reward offered is profit sharing and is an exemplification of the guiding principle to “provide an enriching and rewarding workplace for our employees” (Reed, 2009, p. 3). The non-traditional rewards include promoting from within and volunteer recognition. Promoting from within applies to the philosophy of treating employees with dignity and fairness and the guiding principle of building better value for the stockholders. Rewarding employees for charity work applies to the guiding principle of an enriching and rewarding