Running head: ORGANIZATIONAL BEST PRACTICE

Organizational Best Practice

Si Gou

Concordia University Wisconsin

ORGANIZATIONAL BEST PRACTICE 2

Introduction

Human resource management plays an essential role in every organization and

corporation. It is defined as designing formal systems in an organization to manage human

talent for accomplishing organizational goals (Mathis, Jackson & Valentine, 2014). Proper and

effective human resource management can increase efficiency and reduce costs. Hollon surveyed

and concluded top ten human resource best practices, and one of the top ten is to develop internal

human resource skills (Hollon, 2011). Cigna Health Insurance Company provides study

opportunities for their employees and promotes their actuaries to pass actuarial science exams in

order to develop and strengthen their internal human resource skills.

Organization Background

Cigna Health Insurance Company is one of the biggest insurance companies in United

States. It is a global health service company, dedicated to helping the people [and to serving]

improve their health, well-being and sense of security (More Than Just An Insurance, n.d.).

Its goal is stated in Cignas official website:

Our integrated plans and services combine with proven health and well-being programs

to help employees stay healthy and on the jobAnd we provide individuals and families

with the coverage and tools they need to improve their health, well-being and sense of

security-and lower their medical costs (More Than Just An Insurance, n.d.).

Therefore, Cigna mainly provides medical insurance, and their target market is anyone in need of

medical insurance.

Cigna also has its own culture. They divide their culture into three parts which are

mission, priorities and promise. They set their priorities as customer centricity, inclusiveness,

collaboration, innovation and integrity, and their promise is that [they] understand [their]
ORGANIZATIONAL BEST PRACTICE 3

customers need and work together to help [customers] achieve healthier, more secure lives

(Cigna Culture, n.d.).

Cigna also supported some charities and made donations. As they indicate on their title

More Than Just An Insurance Company they donated to the Hope School in China following

the earthquake in 2008 (More Than Just An Insurance N.D).

Human Resource Best Practice

Developing internal human resource skills is one of the most remarkable human resource

best practices. It not only develops and strengthens a corporations internal skills, but also

increases employees loyalty and reduces turnover rate.

Frequently corporations are recruiting experienced, highly skilled, or highly educated

people outside of companies. It is common to find a job post requesting a master degree or a

doctorate degree. However, sometimes, employers forget to consider improving their own

employees skills and education. Instead of recruiting highly skilled or educated workers outside,

they can invest money in their own employees education or training. Hollon quoted from Bersin:

High-impact [human resource] organizations must invest the time and money needed to ensure

team members competence grows in such disciplines as change management and relationship

management. Efforts must also focus on developing team members business acumen, industry

knowledge and command of current best practices in all areas of talent management (Hollon

2011). Investing money in education and offering more training are two effective ways to

strengthen internal human resource skills. For instance, some companies might provide their

employees with higher education opportunities by helping them pay EMBA, Executive Master of

Business Administration. Some other companies might invite some specialists or professors at

the top of each field to share and lecture within their companies.
ORGANIZATIONAL BEST PRACTICE 4

Regular employee training is beneficial to companies. Most employers only train their

new employees in the first few weeks. Periodical training can enhance employees skill and

improve productivity. Unlike training, investing in employees education can be much more

expensive and risky. Some employees might take advantages of companies, and quit their job

after their employers paid their tuition. Therefore, Companies should carefully choose who they

are providing their opportunities for, and should make education opportunities competitive, so

that promising and diligent employees will get opportunities first.

Best Practice in Cigna

Cigna Health Insurance Company is currently developing internal human resource skills

by providing study opportunities for their actuaries and promoting their actuaries to study and

pass actuarial science exams.

Cigna offers a program named Actuarial Executive Development Program. This program

does not only help recruit qualified actuaries but also help and develop actuaries who are hired.

Its goal is to attract and retain high-caliber actuarial professionals who will perform financial

and actuarial functions and to professionally develop each member and support them in

pursuing senior level management and leadership roles (Actuarial Executive, n.d.). This

program can effectively attract talented and motivated actuaries outside of companies, and

develop and help actuaries, once they are hired and become employees.

Aside from providing training sessions on how to prepare and pass actuarial science

exams, Cigna also financially supports exam registration fee and textbooks as well as paid study

time (Choosing Cigna AEDP, n.d.). Actuaries are crucial to develop insurance plans and perform

risk management as well as pricing. Ilgaz also said, Investing in a quality professional

development program will help retain the positive, motivated and skilled staff vital to an
ORGANIZATIONAL BEST PRACTICE 5

organizations success (Ilgaz, 2015). Therefore, developing their internal actuarial teams skills

is beneficial for their long term survival by attracting and retaining positive and skilled actuaries.

A Potential Plan

The best practice of developing internal human resource skills can also apply to various

companies and organizations such as financial corporations and hospitals.

To begin, a considerate amount of financial corporations are in need of CFAs, Charted

Financial Analysts. Two possible solutions are available. For short-term relief, they can recruit

CFAs outside of company; however, for their long-term strategy, they will need to encourage and

support their own staff to study and pass CFA exams. Some practical ways to get started can be

providing CFA study sessions for their self-motivated employees and financially support exam

related fees.

Second, hospitals can provide the same kind supports for their exceptional and self-

motivated nurses. Hospital can financially support their nurses to go back to school and to

become nurse practitioners.

Conclusion

The best practice of developing internal human resource skills benefits companies and

organizations in a long run. It not only helps companies attract and retain positive and self-

motivated workers, but also reduce turnover rates and increase their competency. Cigna is

currently practicing this human resource best practice, and they establish Actuarial Executive

Development program to help actuaries prepare and pass actuarial science exams. In addition,

Cigna financially supports their actuaries with any exam related costs. By investing in

developing internal human resource skills, Cigna is building a strong actuarial team which makes

them more competitive in the insurance field. This best practice can also apply to other
ORGANIZATIONAL BEST PRACTICE 6

organizations such as financial corporations and hospitals. Investing in educating and developing

internal skills might seem to be expensive in the beginning, but it is beneficial and will get paid

off in a long run.

References
ORGANIZATIONAL BEST PRACTICE 7

Actuarial Executive Development Program (n.d.). Retrieved February 06, 2017, from

https://www.cigna.com/careers/early-career-hiring/leadership-development/actuarial-e

xecutive/

Choosing Cigna AEDP (n.d.). Retrieved February 07, 2017, from

https://www.cigna.com/careers/early-career-hiring/leadership-development/actuarial-

executive/why-aedp?WT.z_nav=careers%2Fearly-career-hiring%2Fleadership-

development%2Factuarial executive%3BWhy%20Choose%20Cigna%27s%20AEDP

%3BLearn%20more

Cigna Culture. (n.d.). Retrieved February 06, 2017, from https://www.cigna.com/about-

us/corporate-responsibility/culture

Hollon, J. (2015, July 23). New Study: The Top 10 Best Practices of High-Impact HR

Organizations. Retrieved February 06, 2017, from https://www.eremedia.com/tlnt/new-

study-the-top-10-best-practices-of-high-impact-hr-organizations/

Mathis, R. L., Jackson, J. H., & Valentine, S. (2014). Human resource management. Stamford,

CT, USA: Cengage Learning.

MORE THAN JUST AN INSURANCE COMPANY. (n.d.). Retrieved February 06, 2017, from

https://www.cigna.com/careers/about-cigna

Ilgaz, Z. (2015). The Best Employees Stay With Companies That Help Them to Get Better.

Entrepreneur. Retrieved February 06, 2017, from

https://www.entrepreneur.com/article/249490
ORGANIZATIONAL BEST PRACTICE 8
ORGANIZATIONAL BEST PRACTICE 9
ORGANIZATIONAL BEST PRACTICE 10
ORGANIZATIONAL BEST PRACTICE 11