4 reasons why a holistic employee compensation plan with estate planning helps retain top talent

Hiring and retaining the right talent has become more challenging and often leads to countless sleepless nights for senior management. But it is definitely worth the hardship – a top performer in an organization can deliver up to 400% more productivity than an average employee, according to the Harvard Business Review.

A company’s compensation package is an expression of its overall reward philosophy. However, monetary compensation is not the sole factor that influences and retains top talent. The nature of the business, life cycle phase of the organization, average workforce age, and location often dictate the prioritization of compensation plan elements.

Because of COVID-19, the average workforce is demanding more flexibility in remote working arrangements and benefits than ever before. Employees want to know that all aspects of compensation will be covered – not just for the present but for the future. Long-term incentives, such as the security offered by estate planning, let employees know that their employer has their development and compensation covered.

Let’s examine the key reasons why estate planning, in particular, can stop your company from losing top talent.

1. Benefits that last a lifetime

Employees want benefits that will not only support and protect them during their employment but beyond that too, offering total financial security. Estate planning, which is the process of deciding where a person’s assets and responsibilities are assigned after death, accommodates any life-changing circumstances or laws later in life, giving employees an added feeling of security.

Furthermore, in addition to estate planning, employers can consider offering a 401k plan that takes a percentage of each paycheck paid directly into an investment account. The employee gets to choose among several investment options, usually mutual funds, and it is more impactful than a traditional pension fund.

2. Employees want more

Put simply – employees want more than just pay. While a sense of purpose, flexible working arrangements, and recognition are all important factors to employee satisfaction, over half of employees still state that additional bonuses or financial incentives would be sufficient motivators to keep them with their current employer.

Estate planning coaching and legal reviews can keep employees satisfied. Rather than just a basic walkthrough of how the process works at the outset, these services offer far more support so that employees can understand all of the aspects of their plan.

3. The ongoing nature of support

Employers should review their compensation plans regularly. This is not just for estate planning but all other aspects of benefits. For example, with regards to a bonus structure, an employer might say: “Here’s what bonuses you’re entitled to based on performance, and here’s a tool to model out what those options might be worth in five years.” This lets the employee know that the company has their back, helping them maximize their compensation benefits.

Regarding estate planning, laws can change and could impact documents like a power of attorney or a will, and employees need to be notified that their documents need updates or amendments. This is why regular check-ins remind an employee how to maximize the estate planning benefit of their compensation plan.

4. Building in full support to tackle something complicated

Estate planning is typically perceived as being incredibly complicated. Many people think that they will need to spend thousands of dollars to do it, which is a considerable mental barrier. The reality is that estate planning can be very affordable, especially when it’s part of an employee compensation plan.

Employees will therefore be able to steer clear of the bureaucratic nonsense related to traditional estate planning. Furthermore, legal battles can often develop when discussing something like a will, particularly amongst relatives. Such hassles can be damaging at work, making an employee unhappy, leading to unexpected absences, and making them more likely to leave. Estate planning as part of an overall compensation package prevents this from happening.

The fact is that employees are sensitive to the recognition and reward that they receive for their contributions. Their compensation package in comparison with the industry-standard matters to them a lot. This is why it’s essential to have a compensation plan encompassing many facets, especially estate planning.

Renee Fry is the Co-Founder and CEO of Gentreo, an online software provider with a mission to provide affordable, accessible and easy-to-use estate planning tools for everyone. Gentreo makes it simple for families to create, save and share their estate family plan so they can sleep at night. Not just a will, it is true state-specific estate planning that is now affordable and available to all.