WORKFORCE DEVELOPMENT | RECRUITMENT AND RETENTION
Stay Competitive in a Tight Labor Market
Enhanced retirement benefits enable employers to retain their key executives. Also known as Supplemental Executive Retirement Plans (SERPS), these programs are an effective way for employers to attract and retain the key employees that they need.
SERPs are a powerful employee retention tool. Employers use them to ensure that their most valuable key employees will remain within the organization for a specified period of time.
SERPs are frequently used for jobs that require specialized skills. They are also used in a "tight labor market", where jobs are plentiful, and skilled workers are in short supply. In any case, these enhanced benefit plans make sense when the cost is less expensive than the cost of replacing a particular employee.
SERPs come in different forms, such as company employee stock options, or shares of stock in the company. While these types of benefit offerings are suitable for some, they do have their downside. One downside is that many companies cannot offer stock options or shares of stock to their employees. The downside for the employee is that stock options or shares of the company stock, require the employee to risk that the company will do well in the future.
A popular and far more effective way to fund a SERP is with permanent, cash-value life insurance. This form of SERP is a win/win for both the employer and the employees. Benefits to the employer include significant cost savings with little to no risk. If the employee fails to stay with the organization, the employer can recover the investment from the cash value of the life insurance policy. The benefits to the employee include substantial, lifetime tax-free retirement income that is backed by a financially strong insurance company.
SERPs are a proven solution to retain your key employees for specified periods of time.
Discover how SERPs can be a flexible solution for your organization. You'll learn how to stand out from the competition in a tight labor market.
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