2005 Winners of The Principal 10 Best Companies for Employee Financial Security Announced
Judges Praise Winners for Commitment to Benefits in Rising Cost Environment; Note Trend toward Wellness and Do-It-For-Me Retirement Savings
DES MOINES, IA, September 26, 2005 -- The Principal Financial Group(R) today announced the 2005 winners of The Principal(R) 10 Best Companies for Employee Financial Security. The independent panel of judges who selected the winners applauded them for maintaining a strong commitment to their employees' long-term financial security by preserving core medical, retirement and risk protection benefits despite cost pressures. Judges also acclaimed the winners for innovation in offering wellness programs, one-on-one benefit guidance and do-it-for me retirement savings options.
The program, now in its fourth year, honors growing businesses (five to 1,000 employees) that excel in selecting, managing and providing a benefits program that ensures employees' long-term financial security. More than 400 companies were nominated.
"The Principal 10 Best winners are impressive role models for other growing businesses. They have successfully navigated the benefits challenges faced by most small and medium sized businesses, including rising health care costs," said Renee Schaaf, vice president at the Principal Financial Group. "Our independent blue ribbon panel of judges was very impressed by the winners' solid financial commitment to preserving strong medical benefits, providing long term retirement security and protecting their employees from financial risk. The judges thought it was nothing short of amazing that these companies are not cutting benefits in a cost environment that's tougher than ever."
"It is wonderful to see companies who have the commitment that these companies show. They are really trying to do the right thing with their workforce. They are good examples for the rest of American business." said David Wray, president, Profit Sharing/401k Council of America and judging panel member.
Judges noted The Principal 10 Best winners this year have a strong focus on wellness programs and health education as well as innovative plan design to manage costs. Judges were also very impressed with how the winning companies provide "peace of mind" for their employees' retirement savings through traditional defined benefit pension plans and generous employer contributions to defined contribution plans.
"We're seeing innovation to help individuals save for retirement more easily instead of putting so much reliance on the employee to find the time to do it. The Principal 10 Best winners are taking 401k plans and giving them more security with automatic diversification and annuity options," said Dallas Salisbury, president and CEO, Employee Benefit Research Institute and 2005 judge.
"I was struck by how many companies are still making a commitment to providing a traditional pension plan and to help their retirees with medical expenses. The generosity, diversity and richness of these programs seems to transcend employer size," remarked Nevin Adams, editor-in-chief, Plan Sponsor Magazine and member of the 2005-judging panel.
The Principal 10 Best Companies for Employee Financial Security recognizes the importance of small and medium-sized businesses, which according to the Small Business Administration and Census Bureau, make up over 99 percent of all U.S. businesses. Small companies (less than 500 employees) employ around half of all private sector American workers, and have generated 60-80% of net new jobs annually over the last decade.
"The Principal 10 Best winners provide valuable lessons for other growing companies. They prove that an investment in their employees is an investment in their business and they have the low turnover and high productivity to show for it," added Schaaf. "These outstanding companies deserve to be recognized and The Principal is proud to showcase them as the standard bearers." A summary of best practices gleaned from the winners will be published in a Best Practices guide, available in January 2006 at www.principal.com.
Winning companies come from an array of industries ranging from manufacturing to financial services; and range in size from 15 to over 815 employees.
The Principal 10 Best Companies are: Flexible Steel Lacing Company, Downers Grove, IL; American Council of Life Insurers, Washington, DC; American Lung Association, New York, NY; GuideOne Insurance, West Des Moines, IA; Campus USA Credit Union, Gainesville, FL; The Washington Trust Company, Westerly, RI; Southwest Power Pool, Inc., Little Rock, AR; Glatfelter Insurance Group, York, PA; Moran Towing Corporation, New Canaan, CT; Fremont Co-operative Produce Company, Fremont, MI.
Expert Judges Determine Winners
A distinguished judging panel of business leaders and employee benefit experts worked with Mathew Greenwald & Associates, a premier market research company, to choose the winners based on how companies select, manage and provide benefits and other programs that contribute to their employees' financial security. Judges made their decision based on non-identifiable information. The names of the entrants were shielded from the judges until after they selected their winners.
The program judges included: Dallas L. Salisbury, president and CEO, Employee Benefit Research Institute; David Wray, president, Profit Sharing/401k Council of America; Deborah J. Lucas, PhD., Household International professor of finance, Kellogg School of Management, Northwestern University; Nevin E. Adams, editor-in-chief, PLANSPONSOR Magazine; Susan Reece, VP of strategic development, Leupold & Stevens, The Principal 10 Best Companies - 2004 winner; Karen Ignani, president & CEO, America's Health Insurance Plans; Corey Rosen, executive director, National Center for Employee Ownership.
Judging Criteria
Companies were evaluated based on benefits the judges deemed most important in contributing to employee long-term financial security. Those benefits included retirement plans; strong medical coverage, including significant premium subsidies by employers; long-term disability options; group life insurance; accidental death and dismemberment coverage; medical and retirement packages for part-time employees; and effective communication methods to help employees maximize the benefit options. Judges selected winning companies based on the breadth of their benefits offerings -- how well they cover major life events such as retirement and disability; and the depth of their benefits offerings -- how much the company contributes in terms of matches or premiums. The judges also considered the overall commitment to employee financial security as demonstrated by how the company aligns its benefits to the specific needs of its employees and how the company helps employees understand and utilize their benefits.
About the Program
The Principal 10 Best Companies for Employee Financial Security is a nationwide program that searches for and recognizes small and medium-size companies that excel in providing for employee financial security. Entries for the 2005 search were accepted from February 1, 2005, through May 1, 2005. The program was open to any company with between five to 1,000 employees. To qualify, all entrants must have been based in the United States and have provided a broad range of employee benefits for at least five years. Qualifying companies must have, at a minimum, offered "traditional" employee benefits, such as those relating to retirement, health, life or disability. No entry fee was required, and employees of The Principal were not eligible to enter. Entry forms for the 2006 recognition program will be available in February 2006. For more information, visit The Principal 10 Best Web site at http://www.principal.com/theprincipal10best/index.htm
About the Principal Financial Group
The Principal Financial Group(R) (The Principal(R)) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $187.8 billion in assets under management and serves some 15.2 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
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