If you want to attract and keep the most talented employees, having a great company culture is a no-brainer. But what exactly does that look like?
As it turns out, company culture should go beyond the "sexy" perks like catered lunches and spa outings, and include more meaningful benefits. Think wellness programs and competitive health insurance packages.
These may cost you more upfront, but they'll make your employees much happier in the long run. Also, people tend to work harder when they're treated well.
According to the Principal Financial Group, benefit programs are critical to "employee engagement, retention, and productivity - and, ultimately, company performance." When selecting small and mid-sized US companies for its 2014 10 Best program, Principal Financial Group identified common traits that make up a great company culture. Here are five to consider:
1. Help employees save for retirement.
Whether it's through a 401(k) or 403(b) plan (also known as a tax-sheltered annuity plan for public schools and tax-exempt organizations), your company should help employees save for retirement. Several of the 10 Best companies also provided benefit pension plans, employee stock ownership plans (ESOPs), or both.
2. Make it easy for employees to secure their financial future, and give them incentives to do so.
Of the 10 Best companies, 80% automatically enroll eligible new employees in their 401(k) plans, and half of these plans have auto-escalation features. Several do a periodic check of participation to encourage eligible employees who have not enrolled in a 401(k) plan to enroll, giving generous direct contributions or matching contributions.
3. Invest in their financial literacy.
Not only should you give employees financial benefits, but you should also be investing in their overall financial education. Consider offering financial planning resources - group seminars, online tools, educational brochures, a telephone help line, and one-on-one guidance - to empower employees to manage their finances.
4. Offer employees benefits, tools, and resources to help them achieve health wellness.
It's important to show your employees that you value their health and well being. Comprehensive health insurance is standard among the 10 Best companies; they all pay a significant portion of their employees' premiums, and half of them even cover 100% of the cost. Many also offer dental, vision, accident, group life, critical illness, and/or long-term care insurance in addition to perks like paid health club memberships and on-site fitness coaches.
5. Design programs that are accessible and flexible enough to accommodate changing lifestyles and needs.
Your employees' needs may change over time, and your benefit programs should address those changes. In addition to offering health savings account (HSAs) and other flexible spending accounts, some companies offer programs to help employees with major life events, such as buying a home or purchasing a car.
The best way to attract employees - and retain them - is to develop a company culture that helps them achieve their long-term health and financial goals. If you create benefit programs that empower them, they'll be more engaged, productive, and motivated.
Learn more about the 10 Best program and how to participate.
This post is sponsored by the Principal Financial Group.
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