Attract and retain talent in a competitive market
Sponsored by the AICPA Insurance Trust Member Insurance Programs
Just as your company evaluates candidates for hire, your pool of potential employees measures your firm against other employers. How do you stack up? You can get a good idea of how likely you are to attract—and hold onto—the best and brightest prospects for employment by taking another look at the insurance benefits you offer your employees.
In an economy where many workers are unsure of where their future may lie, choosing an established employer is of the utmost importance. According to a U.S. Bureau of Labor Statistics National Compensation Survey released in July, more than half of all employers offer life insurance to their employees. When that number is drilled down to professional–type jobs, the percentage jumps to more than three-quarters of employers offering coverage (Bureau of Labor Statistics, Employee Benefits in the United States, Table 5. “Life Insurance Benefits: Access, participation, and take-up rates,” July 2011).
A competitive life insurance plan—what to look for
With so many employers offering attractive insurance benefits to employees who
are considering their options, it’s important that your life insurance offering stands out and is truly seen as a benefit by your employees—and those prospects you are trying to recruit. When evaluating what life insurance plan to offer, be sure to select a plan that offers:
• Economical coverage to both the employer and the employee. It doesn’t do you any
good to offer a Cadillac-sized insurance plan if it’s too expensive for anyone—including your
firm—to afford. So consider plans that offer group rates, based on the number of employees your firm has. Group rates tend to lower the overall cost of coverage for everyone. Many insurance providers tailor plans for small- to midsize companies that enable firms like yours to offer quality life insurance coverage.
• A choice among coverage amounts that fit the needs and lifestyle of your
employees. A good way to do that is to select a plan that offers coverage based on your employees’ salaries. The coverage amounts you choose to offer employees can be equal to or multiples of their salaries. You should also evaluate plans that can offer your firm’s proprietors and partners a competitive level of coverage.
• An easy enrollment process that makes the plan easy to administer and maintain. Online tools can help streamline your firm’s process and help your administrator keep closer tabs on employees’ coverage, make payments, view elected benefits, and add new employees to your roster.
You can use your employee life insurance benefits as a recruitment and retention tool by making sure your life insurance plan offers coverage for your employees’ loved ones, too.
A plan that offers coverage on spouses and dependent children could be seen as an even more attractive option for prospects, because of the ease of enrollment, as well as the cost advantages that group coverage offers. For peace of mind, your employees will also probably appreciate having all of their family’s life insurance issued by the same company.
AICPA-endorsed life insurance for firms
One option to consider for the life insurance plan your firm offers is the AICPA Group Insurance Plan (GIP), with coverage issued by The Prudential Insurance Company of America. GIP offers firms six insurance schedules from $50,000 to $500,000 and a three-, two-, or one-times earnings basis. Proprietors and partners less than age 65 may be insured for the scheduled maximum amount, and employees can be insured for an amount equal to three-, two-, or one-times their annual salary.
The AICPA recently launched its Online Self-Service Center, accessible to participating firms at trustmyaccount.cpai.com. From this site, firm administrators can set up and manage their firm’s account. GIP has an added bonus: Using the site may qualify your firm for an additional bonus paid when the annual cash refund occurs. Participating firms receive the cash refund from the AICPA Insurance Trust, paid out of premium refunds received by the Trust from Prudential. These refunds aren’t guaranteed, but have been paid annually since the plan’s inception. If you have questions about the AICPA GIP, call (800) 223-7473.
GIP is the life insurance plan endorsed by the AICPA for firms looking to provide their employees with important life insurance coverage options at affordable group rates. If your firm is looking to attract and keep top-tier employees, make sure every aspect of your offer is attractive to them. Life insurance protection for employees and their loved ones can be the deciding factor between your firm and a competitor. Make sure your option includes the features your employees value.
Coverage under the Group Insurance Plan is issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102. The Certificate contains details, including any policy exclusions, limitations and restrictions which may apply. Contract Series 31300. CA COA #1179 NAIC #68241. You may call Aon Insurance Services, the Plan Administrator, at (800) 223-7473. Aon Insurance Services is a division of Affinity Insurance Services, Inc.; in CA, MN, & OK, (CA License #0795465), Aon Insurance Services is a division of AIS Affinity Insurance Agency, Inc.; and in NY, AIS Affinity Insurance Agency.