Total Rewards




Q1.How the company uses its own products or services to enhance thetotal compensation for its employees

Fromthe case study, the two companies use their own products and servicesto enhance total compensation for their employees (Gorman,2006).For instance, Aflac insurance company provides its products at verylittle price or at no cost. For example, it provides its employeeswith an employer-paid life insurance. In addition, the insurancecompany provides its employees with a company-subsidized accidentprotection insurance and company-paid cancer policy. Further, thecompany funds pediatric cancer research. As a result, all Aflacinsurance employees have a cancer insurance cover with the companypaying 100% of the premium.

Further,the company offer families with children with company-sponsoredhealth care. Unfortunately, most young employees prefer to take timeoff rather than the health care insurance. Nevertheless, theorganization benefit varies depending on the demographic composition.The benefits enhance quality of life and their employment status withthe organization.

TheL.L. Bean Company also offers its products as a form of compensation(Gorman,2006).The company has an employee-use room that they use to store outdoorequipment such as hiking gear and kayaks for their employees. Indeed,any employee of the company can store their equipment free of charge.The company also provides a fridge benefit to enhance total qualityof their products. The company also encourages its employees toprovide feedback about company products, and their designated use.

Q2.The internal and external strengths and weaknesses identified and howthe company responded to these factors from a total rewardsperspective

AlthoughAflac insurance company has been struggling with retention, it hasmanaged to respond to it through increased communication. The companywas able to outline the value HR programs, outcome and assessedemployee opinions through comprehensive survey. The Aflac Companyfaced an external threat when it tried to increase the cost ofemployee benefits. It improved communication and clearly outlined thebenefits as a shared responsibility. In addition, the company wasalso able to balance the costs of benefits with its strategicinitiatives (Sandra, 2009).

Onthe other hand, L.L. Bean Company has been struggling withindustrial, landscape, technology, and internet (Sandra, 2009). As aresponse, the company used it strength to uplift its employees byrewarding the most performing employees, enhancing services levelsand increasing opportunities for advancement.

Q3.Examples of traditional and non-traditional rewards and how they areused to meet organizational objectives.

TheAflac insurance company and L.L. Bean Company employ both thetraditional and non-traditional rewards to meet organizationalobjectives in order to increase productivity, retention, diversity,employee job satisfaction, customer service, and other strategicobjectives. Some example of these rewards includes flexible spendingaccounts, cafeteria-style benefits plans, generous retiree benefits,and paid vacations.

Q4.How the company aligns its benefits with its corporate values

Itis the desire for every company to align its benefits to correspondwith its corporate values. Aflac insurance company did so byproviding supervisory development and opportunities for management bycombining external resources and in-house training do mold strongleaders. Additionally, the company used its total reward statement ofemployees as an effective tool of communication (Sandra, 2009). Toimprove, it also worked hard to increase retention because of thequality of benefits and uses cost sharing to offset its raised costof offering benefits.

Correspondingly,the L.L. Bean Company focuses to build a strong customer focus todeliver profitable results to its workers and stakeholders, as wellas maintaining private ownership. The company also responded to thechanging market conditions by continuing its commitment to theenvironment and completing in a global landscape. The company alsoadopted fair labor practices for its workers working outsides UnitedStates, and increased their wages and improved their workingconditions. In addition, the company also provides opportunities forits employees to participate in events that sustain the environment.The company also encouraged its employees to take test of thecompany’s products in the team-building adventures. The traditionalbenefits offered by the company provided an in-house training toimprove employees’ status so that they would respond to thechanging market conditions whereby more than 75% of employeesparticipated in the in-house classes. The company also continued withits traditional phenomena of employing old workers, as well asoffering traditional benefits to its employees even after they retire(Sandra, 2009).

Q5.Recommendations regarding an expansion of the benefits programsoffered at the company that would further align HR with theaccomplishment of organizational goals and values.

Withthe changing workforce and economy, the following are some of therecommendations firstly, a company should focus ontelecommunicating, job sharing, and other alternativeworkarrangements. Secondly, a company should expand its trainingopportunities for skill acquisitions, and especially in outsourcedjobs. Thirdly, a company should focus on financial planning foremployees in order to manage the gap between increasing expenses andtheir earning. Fourthly, companies should introduce programs thatallow their employees to donate their time off and their employee intime crisis. Lastly, companies opt to expand their cafeteria-stylebenefits in order for their employees to spend their benefitsaccording to their needs.


Gorman,L. (2006). L.L. Bean: The making of an American icon.Cambridge, MA: Harvard Business School Press

SandraM. (2009). Benefitsand Business as Aflac and L.L. Bean. Society for Human ResourceManagement.New York: Cengage learning