New Guide Shows How Companies and Employees Can Get Physically and Financially Fit Together
January 29, 2008 (Des Moines, Iowa) — Businesses across the country are wrestling with some tricky problems—escalating health care costs, an aging workforce, shrinking budgets, and ever-increasing competitive pressures. Finding solutions may seem daunting, yet there are growing companies that have found a formula that works: a combination of physical and financial fitness for employees which leads to fiscal fitness and a competitive edge for the business.
Their benefits strategies are unveiled in a new best practices guide from the Principal Financial Group. The Formula for Success tells the stories of The Principal 10 Best Companies for Employee Financial Security—2007. Selected by an independent panel of benefits experts for excellence in helping employees achieve long-term financial security, the winning companies say the key is more personalized help — such as one-on-one health coaches and workplace financial guidance — that provides physical and financial fitness for their employees and bottom line benefits for the company.
"The Principal 10 Best Companies help their employees achieve financial fitness by providing the benefits and the education employees need to feel secure about their financial futures. At the same time, a growing emphasis on physical fitness improves employees' quality of life and helps prevent costly illnesses. Wellness screenings at these companies caught high cholesterol, diabetes and prostate cancer — including that of one winning company's CEO," said Renee Schaaf, vice president, the Principal Financial Group.
It all adds up to happier, healthier and more dedicated employees and ultimately a competitive advantage for the company. The leaders of these organizations say their investments in employee benefits help them recruit and retain the best employees, as well as cut training costs, enhance customer service and boost productivity. As Dan Robinson, CEO of Placid Refining Company, LLC (PDF: 55 KB), said, "If people feel they have a good benefit package, they'll give 110 percent to the employer. The return is very loyal, hardworking employees."
In the guide, which is available at no charge at www.principal.com/bestguide/, employers and their financial professionals can find:
- A benchmarking chart for comparing their benefits to those of The Principal 10 Best Companies and national averages
- Detailed tactics and real-life examples of their success
- Engaging case studies that illustrate the universal challenges faced by employers today — and the innovative tactics The Principal 10 Best Companies used to overcome them
- Easy-to-use, interactive checklists that can help them fine-tune their benefit programs
"The Principal 10 Best guidebook is a good benchmark for employers to know what the best are providing, what's out there in the marketplace and what kind of benefits those they are trying to hire could find elsewhere," said Dallas Salisbury, president and CEO, Employee Benefit Research Institute and judging panel member of The Principal 10 Best Companies.
Financial fitness for employees
"The Principal 10 Best Companies go the extra mile to help their employees achieve financial fitness by offering automatic savings tools and one-on-one meetings at the worksite," said Schaaf. PMSLIC Insurance Company (PDF: 55 KB) brought in a financial professional to meet individually with employees and their spouses. "The financial professional gathered data and put together financial plans that employees needed to help meet their goals," said Julie Burns, vice president of human resources at PMSLIC Insurance Company.
Physical fitness for employees
While all of The Principal 10 Best Companies offer some form of wellness program, some companies have been at it longer than others. Badger Mining (PDF: 55 KB) was a pioneer when it started its worksite wellness program 10 years ago. Since then, the program has evolved to include annual health risk appraisals for associates and spouses, financial incentives, health monitoring and one-on-one guidance from a health coach. With 90 percent participation, the company came in under budget on its health expenses last year.
"In our health plan, we emphasize preventative care," said Beth Nighbor, associate development leader at Badger Mining Corporation. "We want to catch those little things before they become major issues and major costs. We need to keep our associates healthy so they can retire from here in a good position physically and financially." Listen to an audio interview about Badger's wellness program. Watch a video about Badger Mining Company.
Fiscal fitness for the business
The Principal 10 Best Companies say their investments in employee benefits pay off — especially when it comes to attracting and retaining top employees. The winners have turnover rates significantly lower than others in their industries, with an average annual voluntary turnover rate of 7.7 percent, compared to the national average of 21.6 percent.
"We run a refinery on the Mississippi River," said Placid Refining Company's Robinson. "There are more industrial chemical refineries here than any other place in the U.S. Because of Hurricane Katrina, the competition for good employees in our area is very, very steep."
The company uses its top-notch benefits program, which includes a 401(k) plan with a Roth 401(k) option and a defined benefit pension plan, to compete. "We wanted to be at the top of the benefits of employers in the area so we could attract and retain those employees. It's very expensive to hire and train people. When you can keep them, that's a big cost savings for the company," Robinson said. Listen to an audio interview about how Placid Refinery's benefits helped it compete after Hurricane Katrina.
About The Principal 10 Best Companies—2007
The Principal 10 Best Companies—2007 were selected by an independent panel of financial services and human resources experts, renowned for their expertise in employee benefits. The Principal 10 Best Companies—2007 are: Badger Mining Corporation, Berlin, Wis.; Business Roundtable, Washington, D.C.; Cobb Strecker Dunphy & Zimmermann, Inc., Minneapolis, Minn.; LMI, McLean, Va..; National Futures Association, Chicago, Ill.; Placid Refining Company, LLC, Dallas, Texas; PMSLIC Insurance Company, Mechanicsburg, Pa.; ProAssurance Corporation, Birmingham, Ala.; Society Insurance, Fond du Lac, Wis.; and The Surplus Line Association of California, San Francisco, Calif.
About The Principal 10 Best Companies 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 2007 search were accepted from February 1, 2007, through May 1, 2007. The program was open to any company with 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 2008 recognition program will be available on February 1, 2008. For more information, visit www.principal.com/theprincipal10best/.
About the Principal Financial Group
The Principal Financial Group® (The Principal®)1 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 $306 billion in assets under management2 and serves some 18.3 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.
1) "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
2) As of September 30, 2007.
