Aflac HR Case Study

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Aflac is an insurance company, one of the largest in the U.S., and it also operates in Japan. The case concerns the U.S. operations.

The company offers 100% coverage on its cancer insurance, and also uses other in-house insurance products as part of the coverage that it offers its employees. It can offer these at cost, which means that these insurance plans will cost less for Aflac to offer than for any company that must buy the plans at market.

Aflac has a strong human resources program -- its benefits are attractive and this reduces turnover. Reduced turnover is important because the unemployment rate is so low in the industry. This reduces the total cost that would otherwise be associated with recruitment and selection in a highly-competitive industry environment.

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Employee satisfaction being high is good for the company as well, if it results in greater productivity. There were no major weaknesses at Aflac, though as with other insurance companies Aflac is having trouble containing the rising costs of health care, despite the strong bargaining power than the insurance industry has with the health care industry.

4. The competitive environment is an external threat both for employees and for customers. A major threat comes with the escalating costs of health care -- suppliers in the health care industry appear to have strong bargaining power over the insurance industry. There is also….....

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