Balancing Culture and Benefits

10 Best companies help employees take charge of their financial futures and provide the benefits they need to do so successfully

While they vary widely in size, location, and industry, the organizations recognized in 2014 as The Principal 10 Best Companies for Employee Financial Security -- a national program that recognizes small and mid-sized companies that excel at giving their employees a financial edge -- do share a common trait. Every 10 Best firm focuses on helping employees secure their financial future by building a corporate culture that promotes personal responsibility and by providing the financial and insurance benefits employees need to be successful at that undertaking. They take different approaches, but a number of best practices stand out among 10 Best companies. Chief among them is providing employees with meaningful financial benefits -- 401(k) plans, profit-sharing, defined benefit pensions, ESOPs -- to help them save for retirement and comprehensive insurance benefits to keep them healthy enough to do that.

These companies make it easy for employees to improve their financial and health wellness and give them incentives to do so. Eighty percent of 10 Best companies' 401(k) plans utilize auto-enrollment, and many include auto-escalation features. Strong employer contributions and matching funds for employee contributions are common, and all offer meaningful insurance benefits.

Financial wellness as a core benefit

Among the array of benefits all 2014 10 Best companies offer employees are comprehensive health insurance paid for or subsidized by the employer and some combination of dental, vision, accident, group life, critical illness, and/or long-term care insurance. Just as importantly, 10 Best companies actively promote financial literacy among employees to help them take charge of their financial future. Every 10 Best company also offers one-on-one financial guidance to employees. Typical resources provided included group seminars and guidance sessions, online and telephone assistance, and educational books and brochures.

The cumulative effect of 10 Best companies' efforts is the creation of a corporate culture that encourages employees to become more actively involved in both their financial and physical wellness. These companies make their benefit programs attractive, accessible, and flexible to meet the changing needs of employees, and they are rewarded for their forward-looking approach to employee financial security. Employee turnover rates at 10 Best companies are lower than the national average -- markedly so in some industries. In fact, the winners' average annual voluntary turnover rate is less than 7 percent, compared to the national average of 13 percent, according to the Society for Human Resource Management.

The owners and managers of 10 Best companies credit their benefit strategies with playing an important role not only in employee recruitment and retention, but also in maintaining high levels of engagement, motivation, and productivity among employees. Utilizing these best practices provides a measurable ROI and helps 10 Best companies stay on the leading edge of their respective industries.