Human Resources
Best Practices
Your Key to
Recruiting Success
 Selective Benefits
Whether you are the head of a small, family-owned
business or a large corporation, finding the right
employees is becoming more and more challenging.
Nowadays it’s not uncommon for several businesses to
compete for the services of skilled and talented
individuals in the same manner as they would compete for
a customer’s business. So, how can your business set
itself apart from your competitors and attract high
quality, “key” individuals?
Core Benefits
Potential employees have a certain level of expectation
concerning benefits. When evaluating each prospective
employer, they may take a first look at what core
benefits are usually at the top of the list:
-
Health Insurance
-
Qualified Plan
-
Vacation
-
Flexibility of Schedule
-
Working Environment
Selective Benefits
There are a variety of additional benefits that can set
one employer apart from another when attracting new
executive-level employees. However, some businesses may
be concerned that Internal Revenue Service (IRS)
discrimination rules may require the inclusion of such
benefits in already existing employee benefit packages.
Fortunately, there are some benefits that allow
employers to be selective.
Split Dollar Arrangements
The split dollar arrangement is a creative method
whereby the employer uses business dollars to provide
high quality permanent life insurance for a select
employee. Generally, it also ensures the employer will
be repaid any premiums paid on the employee’s behalf, or
the cash surrender value of the policy. The employee
benefits by acquiring additional life insurance
protection.
 Executive Bonus Plans
This benefit allows the employer to pay a selected
employee a compensation bonus that is deductible to the
corporation. The bonus is then used by the employee to
pay the premium of a life insurance policy insuring the
life of the employee. The policy is owned by the
employee.
Disability Income Insurance
A growing concern for many individuals is how they will
maintain their financial and personal lifestyle in the
event of a debilitating accident or illness. In
addition, group disability plans offer only minimal
amounts of coverage. Therefore, individual disability
income insurance paid by the employer is fast gaining
popularity as a much sought after benefit by prospective
employees.
Voluntary Benefits
These benefits are funded entirely by the employee,
generally through payroll deductions. Typically a menu
of benefit options (i.e. dental insurance, disability
income insurance, etc.) is given to employees in
addition to core benefits. Employees then pay for
whichever benefit(s) fits their respective financial
needs. Because voluntary benefits are offered in a group
setting, costs are generally more affordable than if the
employee were to purchase similar benefits individually.
In today’s work world, business owners are quickly
realizing that salary alone is no longer the only factor
highly skilled employees are seeking. Just as you are
shopping for the “right” employee, they are shopping for
the “right” employer. They are looking for the best
combination of salary and benefits that is right for
their situation. Therefore, employers need to offer a
creative benefits package that sets them apart from the
competition.
This article appears
courtesy of Annette S. Rankin. Annette is a registered
representative offering securities through New England
Securities Corporation, a broker-dealer (member NASD/SIPC).
She focuses on meeting the individual insurance and
financial services needs of people from the Tampa Bay
area. You can reach Annette at the office at 302 Knights
Run Avenue, Suite 1000, Tampa, FL 33702, 813-383-2280.
New England Financial is the service mark for New
England Life Insurance Company and related companies,
Boston, MA L0212G7CK(exp1207)ENT-LD
Pursuant to IRS Circular 230, MetLife is providing you
with the following notification: The information
contained in this article is not intended to (and
cannot) be used by anyone to avoid IRS penalties. This
article supports the promotion and marketing of life
insurance. You should seek advice based on your
particular circumstances from an independent tax
advisor.
Like most insurance policies, Life and Disability Income
Insurance policies contain exclusions, limitations,
reductions of benefits and terms for keeping them
in-force. Your agent or financial representative can
provide you with costs and complete details.
Published August 2007,
Volume 1, Number 5,
Bay
Area Business Magazine
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