Successful companies' unwavering commitment to their employees' long-term financial well-being leads to a competitive advantage according to new survey from Harvard Business Review Analytic Services sponsored by the
Amid the challenges of a decade that began with 9/11 and closed with the economic recession, companies surveyed maintained or increased their employee benefits. Most of them increased retirement contributions over the previous decade.
These companies' approach to employee financial security is the basis of a new white paper, Commitment to the Future: 10 Years of The Principal 10 Best Companies from Harvard Business Review Analytic Services (http://www.principal.com/10bestresearch). The study sought to uncover what has made the winners of The Principal 10 Best Companies for Employee Financial Security (http://www.principal.com/theprincipal10best/index.htm) stand out among their peers over the tumultuous decade and what can be learned from these companies for the decade ahead.
For the past 10 years, The Principal 10 Best Companies program has honored growing organizations for their commitment to employee financial security. Despite the economic uncertainty, 98 of these 100 companies remain in business today. The companies included publicly owned and privately held organizations, service businesses and manufacturers ranging in size from 15 to nearly 1,000.
"The Principal 10 Best winners continue to set the standard for improving employee financial security; they realize an investment in their employees constitutes an investment in their own future well-being," said
Benefits pay dividends
The majority of companies interviewed say investments in employees save the company money in the long-run. Three-quarters said employee benefits programs had a significant impact on retention and recruitment. Retention translates to lower turnover costs, and 10 Best winners have, on average, voluntary turnover rates less than half of industry averages. But, according to the companies, exemplary benefit programs also lead to stronger employee morale, greater competitive advantage and near spotless safety records.
"As one HR director puts it, you can't have customer satisfaction without employee satisfaction. A good benefits program's connection to employee security, motivation and performance couldn't be more clear," said
Respondents say the biggest issue on the horizon is managing benefits costs coupled with growing concern over health care reform. Harvard Business Review Analytic Services identified several key trends emerging for the future including:
Rising health care costs were noted as a universal concern, but a large majority of companies surveyed have added wellness programs as one way to help control those costs and improve employees' lives.
Financial professionals can be invaluable to help sift through options and identify opportunities to maximize benefit value. A significant majority of the companies provide their employees with one-on-one access to financial professionals.
Virtually all respondents reported placing a great deal of emphasis on communication including the value of benefits with employees. As
Learn more about The Principal 10 Best Companies for Employee Financial Security and see the full report at www.principal.com/10bestresearch. For more news and insights from The Principal, connect with us on Twitter at http://twitter.com/ThePrincipal.
TNS C 71NayakRashmita 120510-MJ88-3869214 StaffFurigay
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|Source:||Targeted News Service|