Everyone has a keen awareness about the important role that benefits play in attracting and retaining talent. At the same time, however, some probably underestimate the degree to which an employee benefit plan — if appropriately matched to employee interests — can motivate staff and generate higher performance, which fuels success in growing businesses.
What is "best in class" and, furthermore, how do we know it can produce tangible results? For insight into both questions, let's look at The Principal 10 Best Companies for Employee Financial Security.
Defining "best in class" may surprise you. While it's logical to assume that it consists of a lucrative set of benefits provided by an employer at no cost to the employee, according to The Principal 10 Best, that's not it at all. Ultimately, it means different things to different employer groups. Still, there are some common themes that can be applied to any employer.
- The benefits are tailored to the workforce, meaning that the employer knows what employees value (which may vary from what the owner may value) and ignores the rest.
- There is a notable focus on long-term financial well-being versus short-term stop gap benefits. Additionally, the employer is willing to go to great lengths to encourage participation and help employees understand the options available.
- The program provides a unique blend of benefits that reinforce key elements of the company's culture.
- It includes a strong emphasis on comprehensive health and wellness coverage as a baseline.
- And, last but not least, the program is reevaluated and tailored to meet the changing needs and preferences of employees.
In return, the employer can expect dramatic results compared to their peer companies. The 2013 winners of The Principal 10 Best report a voluntary turnover rate of less than 5 percent, compared to approximately 21 percent for all U.S. companies. Plus, customer retention and other key measures quickly become leading indicators of success.
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The results also showed that these companies don't go it alone. Not only do they seek feedback from their employees, they also rely on financial advisors to design a program that meets specific needs. Here are some tips for you to help your clients become "best in class" without breaking the bank.
- Provide a benchmark to show employers how their insurance benefits stack up against other businesses in the same industry and location. If you don't have access to benchmark data, try The Principal Benefit Design Tool.
- Assist the employer in helping their employees understand their insurance options and, ultimately, participate. Involve social media in the process and consider ideas, such as your own blog, for your clients and their employees. These are great ways to get simple messages out to large masses inexpensively.
- Understand the make-up of your client's employee base and tailor the program to include non-traditional benefits. For example, younger generations — Millennials and Gen Y — place a lot of emphasis on social responsibility. You may want to recommend that the employer offer voluntary time-off and other programs that demonstrate corporate social responsibility.
- Remind employers that little things go a very long way, such as discounts to fitness clubs and screenings or preventive programs for certain health risks.
- Focus on re-enrollment, which is perhaps more important than initial enrollment. When the annual election periods roll around, get actively involved to help employees with options.
- Don't take a one-size fits all approach. The program needs to be tailored to include benefits that everyone can use at different stages of their life.
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