Internal Strengths and Weaknesses of AFLAC Company

The assignment content is about AFLAC COMPANY and its internal strengths and weaknesses, external opportunities and threats, and the revision of the corporate value reward-benefit program to help accomplish organizational goals and values. The company's biggest strength is its employees, who represent the company in front of clients. Another strength is its recruitment and selection process, which helps reduce overall employment costs. Internal weaknesses include a fear of losing employees due to low unemployment rates and high salaries offered by other companies. External opportunities include cost containment strategies for providing health insurance to employees, while threats include headhunting by competitors for talented employees. The company has launched value-added programs to retain employees and bring new talents.

AFLAC COMPANY
Company overview
The company was founded in 1955 as an insurance company which is now among the
Fortune 500 global companies. John, Paul and Bill Amos are the founders of this
company. As per NYSE data, it has more than 4500 employees and near about 71000
clients stretching from U.S.A. to Japan (Aflac Supplemental Insurance, 2017). The main
business of the company is to provide supplemental health and life insurance. I t has
a wide variety of life and health insurance offers.
Q-1- Internal strength and weaknesses of AFLAC. How did it the firm respond to
these factors from a total reward perspectives?
Internal strengths
 The biggest strength of the company is their employees. Having 4500 employees
for its 71000 clients and earning brand value among customers, these all are
indicating towards one thing i.e. employee dedication and company’s care for
their employees (2017). There is a concept called “Face of Company” and here
it’s their employees who represent company in front of clients.

 Another strength is the recruitment and selection process. They have managed
to keep cost and time with respect to recruitment, selection, retentions, diversity
and training. This is helping them to reduce overall cost of employment for the
company which it can use for benefits of employees who perform well.
 Employees are aware of organizational culture, its mission, vision, ethics etc.
which helps them to deal with clients well.
 Employees are being constantly measured by the top management for not just
the betterment of company but also to make employee better with bonus and
incentives.
 The company has shown care for the employees and bestowed trust on each
employees as well.
Response to strength
The company has taken a value added program for employees to retain more
employees by offering on-site leadership and personality development so that they can
be ready to grab employment opportunity. This you can find in the senior level
management where 91% got promoted through their performance.

Internal weaknesses
There is no direct weakness point for AFLAC Company but a fear of losing employee
was with them for a long period that forced them to make changes in their policies of
employment. They found that due to low unemployment rate, employees seem to move
to other company who offers high salary.
Response to weakness
Identification employees job satisfaction, opportunities for career development and by
taking initiatives from company side like offering policies at low or no cost, Volunteer of
the month, career next program etc.
Q-2- External opportunities and threats of the company and how did it respond
from the total reward perspective.
Opportunity
HR professionals of AFLAC identified that by applying cost containment strategy in
providing health insurance to its employees will be one of the best way to retain
employees and to motivate them for giving efforts towards company. This was actually
meant to outpace inflation.

As in case study it is mentioned that the increase in employer’s insurance premium that
is 6.1% which was double of what inflation rate was going on (Aflac Supplemental
Insurance, 2017).
Response to opportunity
The company communicated that providing health insurance is essential cost but it will
help company to grow as employees will put their best for goal attainment.
The message was constructed in such a way that it will go like they are important to
AFLAC and they are proud of that.
Threat
The biggest threat was head hunting of insurance providers for the talented employees.
This posed a big threat to this company as its employees were exceptionally good at
dealing with client and competitors were aware of that. They could offer high pay to
bring employees to their concern.
Response to threat
The company launched value-added program known as total reward program to retain
employees as well as to bring new talents.

Q-3- Revision in the corporate value reward-benefit program that will help to
accomplish organizational goal and value?
Present state
AFLAC has always valued their employees and clients. Care, fairness, honesty,
integrity, dignity etc. are the pillars of the company to have such a glorious culture for
which today it stands among Fortune-500 (Aflac Supplemental Insurance, 2017). They
have reward system for making employee good to better, better to the best.
The company has understood the concept of multi-generation work force and their
requirement. Facilities like on-site child care and fitness centre can be the example to
define that concept.
Overall its corporate value and benefit to employees program are going in an aliened
manner.
Still it’s not the best, we can bring improvement in the benefit program if these things
can be considered-
 The first and foremost thing the company can do is to do online of its total reward
system. This will help employees to access their performance whenever they

want, they can also know feedback of management constantly over that network.
Management can also suggest improvement over that network.
 Company should set goal with S.M.A.R.T frame work for the employees as per
their role, caliber and experience. This will help them to take roles and
responsibilities clearly and can contribute to success of organization.
 Implement team performance alongside individual performance system so that
the under achiever won’t feel bad about his or her low performance and can earn
some incentives with team effort and next time he or she will try the best to
perform well.
 There is a need of constant monitoring of employees so that it can track whether
employees are performing at par or below par or above target. This will help to
set incentives and reward schemes for employees.
 It need to check on competitors action as well so that before they take
employees of the organization, you come up with some good bonus and
incentives that is as per the budget of company, to keep the key personnel with
you.
 Apply fair compensation management system to improve pay structure.

References
(2017). Retrieved 29 September 2017, from
https://www.shrm.org/academicinitiatives/universities/teachingresources/Documents/09-
0235_Benefits_At_AFLAC_and_LLBean_IM_FNL.pdf
Aflac Supplemental Insurance. (2017). Aflac. Retrieved 29 September 2017, from
https://www.aflac.com/about-aflac/default.aspx