Recruitment and retention strategies go hand-in-hand. A recruitment strategy can become a useless revolving door unless there is also a long-term retention strategy in place.
Here is a list of most common recruitment and retention tools:
· Higher pay
· Better training
· Desired corporate culture
· Employee recognition
· Employee engagement
· High-quality employee cafeteria
· Richer health benefits
· Virtual office
· Life insurance
· Disability insurance
· Long-term care insurance
· Tuition reimbursement
· Employee voluntary benefits
· Pension plan
All of the above items can be used for employee recruitment. However, the only item on this list that is proven to be an effective long-term retention tool is the pension plan. That is because it is the only item that you can attach a long-term, 10 to 20-year vesting period to it. This is one of the reasons why a pension plan is the best recruitment and retention tool.
Another reason a pension plan is the best recruitment and retention tool is because it most attractive to mid-career, employees who realize that they not prepared for retirement. These tend to be highly-motivated and highly skilled employees who are willing to make a long-term commitment to stay with your organization.
Smart, employers can create mini-pension plans on a fully-discretionary basis and use this powerful tool to attract and retain the top talent they need to thrive. The pension plan for each individual employee is created using an indexed universal life insurance policy. This method provides cost control for the employer and the vesting period protects the employer’s investment in the employee. If the employee decides to leave before the end of the vesting period, the employer can recover the money in the plan. There is no other benefit on the above list that provide this level of protection.
When this type of pension plan is used in combination with the other recruitment incentives, it becomes an unbeatable recruitment and retention strategy.
The choice of whether or not to utilize private pension plans as a recruitment and retention tool is a business decision that should be based on actual numbers. In most cases, the cost of a private pension plan is significantly less than employee turnover costs.