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Matching benefits to executive tier more effective in retaining and rewarding "A" players
Industry: Regional architectural firm
Situation Analysis:
Current research shows that the majority of top-tier executives prefer higher retirement benefits over a higher salary. To that end, the client wanted to make sure owners and executives would experience not just financial earnings, but a rich, overall benefits package that matched their needs, both current and future. Consequently, the total benefits platform was analyzed in terms of recruiting, retaining, and rewarding top-tier employees.
Strategy:
Benefit Associates immediately identified a need to increase and restructure the long-term financial protection plans (including disability and long-term care) for maximum coverage and efficacy.
Tactics:
- Because the current disability plan did not have provisions for the group’s retirement plan contributions, Benefit Associates recommended owners purchase retirement security disability insurance.
- A tailored long-term care insurance plan was offered to protect the assets of all owners against the possibly devastating financial consequences of nursing home costs. Approximately 43 percent of American over 65 will be admitted to a nursing home during their lifetimes. Because half of these will deplete all personal savings in the first three months, the customizable plan was offered to all owners and their family members.
- Specialized enrollment and education was provided to existing owners and all future owners with a special long-term care seminar for spouses. When spouses and family members in addition to executives are covered by long-term care programs, retention and productivity increase. Research shows that when a chronically ill individual has coverage, the spouse or caregiver is twice as likely to stay on the job, experiences less stress, and faces fewer work disruptions.
Results:
A quality executive platform was created that protects income, retirement plan contributions, and assets. Seamless implementation and an in-depth educational process helped facilitate acceptance and appreciation of the program and positions the company as a forward-thinking, employee-focused employer.
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The benefit of offering long-term care benefits.
From Financial Services Professional
By Bryan K. Brenner
“Employee benefits is an area of business that should be inherently ethical. Dealing with peoples’ very lives and livelihoods is a tremendous responsibility. Beyond the financial and other pragmatic business reasons for offering long-term care coverage, companies need to provide this option because it is the right thing to do.
“The U.S. Census Bureau expects today’s 65 or older population to double to nearly 70 million in 2030 and the 85-plus population to double to 8.5 million. Increased longevity has its upside, but it’s critical for today’s employees to prepare for the downside– chronic health conditions and the cost of long-term care.
“The concerned and employee-focused company should make it a priority to help people understand and avoid such a potentially devastating financial crisis.” |
