How can unqualified blueprints help retain sequel talent? | EBA

Welcome to Ask an Adviser, EBN’s new weekly column in which benefit brokers and advisers answer (anonymous) questions sent in by our readers. Looking for expert advice? Please submit your questions to [email protected].

This week, we asked Michael Ritz, relationship manager for Lenox Advisors, to comment on the following: How do you leverage unskilled blueprints to attract and retain top talent in the executive suite, especially in this tight job market?

HR departments are caught between two trends: a highly competitive job market and the ever-increasing cost of benefits, exacerbated by the pandemic.

While much of the big resignation has focused on lower-level employees in the service industry, a recent survey suggested that nearly half of vacancies are at the manager and director level. It’s also worth noting that more than 60% of respondents to another recent survey cited the benefits package as a key consideration for job seekers, almost as important as salary (74%).

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So how do companies ensure that their most valuable assets – senior executives – feel rewarded, valued and motivated? By creating a comprehensive benefits program that not only offers strong health benefits, but also meaningful solutions for financial health.

Research suggests employees are less productive when they’re preoccupied with family finances. This may be even more true for senior executives, who are generally not well served by traditional corporate group benefits that are capped at levels far below the needs of C-suite people.

In addition to group term, universal, and whole life plans, supplemental disability insurance, and long-term care insurance, nonqualified plans allow key executives to contribute more to their retirement assets beyond the constraints of 401(k) limits ( k). Examples include deferred compensation, executive bonuses, dollar share plans and group exclusions for which companies can implement various life insurance solutions.

Read more: Ask an Advisor: Why Incorporate Benefits into Workers’ Compensation?

The main advantage of these unqualified plans for executives? The amounts are carried over to retirement when they are likely to be in a lower tax bracket. Advantage for the employer? C-suite retention, especially at a time when organizations need consistent leadership to win the war for talent and grow their business. Overall, well-designed and comprehensive benefits provide executives with security beyond typical health and retirement plans. They can also help differentiate the company and attract stronger candidates.

In the ever-changing business landscape, it’s important to stay on top of trends, especially among competitors in your industry. Such perks won’t necessarily have a big impact on your budget. What’s critical is consulting with an expert who has the resources and connections to design and implement your plan, assist with enrollment, and meet the needs of your senior executives.

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