Financial Options for Securing Employee Loyalty
6 May 2019
With the labour market at it’s tightest for many years, talent retention has moved to the top of the agenda for many organisations. One of the biggest challenges for businesses at the moment is the struggle to fill vacancies as the economy approaches full employment. There are a few financial benefits that employers can offer to increase employee loyalty, as well as attract new employees. These include providing a Pension Scheme, Death in Service Benefits and Income Protection Benefits.
Employers are required by law to offer employees access to a Personal Retirement Saving Account (PRSA); however, the employer does not have to contribute. Offering a more comprehensive benefits package where employers also contribute can help attract new employees and grow loyalty with existing employees. A Group Pension Scheme promotes an image of a caring employer which will give any Company an edge over competitors when it comes to recruitment. It shows a level of commitment and indicates that you have a long term view of your employees which, in turn, should promote more loyalty as well as attract new employees.
Death in Service Benefits
By having a Death in Service Scheme in place, a lump sum is paid to the Scheme Trustee on the death of an employee and the Trustee then passes this along to the employee’s Estate. This is a way for an employer to provide financial security to the family of an employee in the event of the employee’s death during service. This provides important peace of mind and can be an incentive when attracting and retaining employees.
Income Protection is designed to provide employees with an income if they are unable to work for a prolonged period of time due to any sickness, illness or injury. Payment begins once a predetermined period, called the "deferred period", has passed after the onset of the condition leading to the claim. The deferred period differs according to the specific terms of each policy and is usually 13 or 26 weeks. The employee will remain on cover from the end of the deferred period until they can return to work or reach their normal retirement age, which is usually 65. Employees will view the Income Protection provided by their employer as a very valuable benefit as they will remain financially secure if unable to work due to any accident, sickness or illness.
The cost of putting these benefits in place for your employees is usually a lot less than expected and I advise you to talk to a Qualified Financial Advisor about the options available.
Marie Carr, QFA RPA is a Qualified Financial Advisor. You can contact her through John F. Loughrey Financial Services by telephone on 074-9124002 or by email on email@example.com