How to Retain Those Key Employees

Prepared by Financial Finesse, a full-service unbiased financial education company.

Question: How can we attract and keep key employees?

Answer: By educating your employees, you help them become healthy, wealthy and wise... not to mention loyal!

Attracting (and keeping!) good employees is an ongoing challenge. The costs associated with recruiting and training can literally be thousands of dollars per employee. An employee satisfaction indicator is benefit utilization. The better employees understand and use their benefits, the greater the perceived value of the company.

A few education tips:

• Health Insurance: If you offer health insurance to your employees, make sure your plan summary documents are easy to understand, especially when describing benefits and costs associated with family/dependent coverage. If you offer a monthly stipend for employees opting out, highlight the stipend. Extra pay can be ignored or forgotten by employees looking only at the net pay amount each week.
• Flex Spending/Medical Savings Accounts: If you offer a tax-advantaged flexible spending account or medical savings account, educate your employees on HOW the program works and HOW it reduces the cost of services due to the tax savings. Not only should you explain the benefit but also caution employees of the pitfalls. Many flex-spending programs have a use-it-or-lose-it provision.
• Retirement Plan: Studies have shown most companies offer competitive retirement plans and a significant number of employees fail to participate. Why? The top three reasons are: 1) current financial problems, 2) failure to understand the benefits of contributing and 3) lack of knowledge on investing. Having a financial education program which helps address all of these areas is preferred, not simply covering the nuts and bolts of the retirement plan.
• Work/Life Benefits: Many employers are offering a bundled package of various benefits/services such as counseling, legal aid, elder care resources, financial counseling, parenting services, etc. Such bundled packages can be cost-efficient when purchased via an Employee Assistant Program provider. Brochures, HR assistance, and on-going benefit education can help drive utilization.

Employers need a competitive advantage. Not only do employees look for good benefit programs, but they also need the resources to help understand their benefits and how to use them wisely. Attract and retain good employees by educating them. . If you don't have an existing (or effective) program, consider using an unbiased financial education company who can help educate your employees as well as cross-promote your other employee benefits programs.

About Financial Finesse: Financial Finesse is a full-service unbiased financial education company that works with Plan Sponsors and Plan Advisors to design company and plan-specific financial education programs that address the gamut of plan participant and business needs. Our award winning financial content is delivered in multiple formats: live, online, telephone, and through financial planning kits. If you are interested in learning more about workplace financial education programs, contact one of our education consultants at AskFF@financialfinesse.com.