Best Companies Connect Company Culture to Performance
Announcing The Principal 10 Best Companies for Employee Financial Security — 2013.
November 19, 2013 (Des Moines, Iowa) — Earning national recognition for an outstanding commitment to employees, 10 growing businesses recognize company culture and great benefits play a key role in overall company performance. Companies see the results with turnover rates well below others in their industry and significantly lower than the national average.
An independent panel of judges selected The Principal® 10 Best Companies for Employee Financial Security — 2013. Judges noted top trends among this year's winners:
- Employee financial security influences company performance. Leaders at several winning companies point to high retention rates an evidence employee financial security can impact company performance. The average voluntary turnover rate among the winners is less than 5 percent, compared to the national average of 21.1 percent. Most of this year's winners say there is a strong return on the investment they make in employee benefits.
- Rely on experts. Winners work closely with financial advisors to design programs to engage workers and meet specific needs. Many companies also continuously survey their workforce to determine which benefits are valued and make changes as a result.
- A focus on long-term financial well-being. All companies have achieved high levels of participation in benefits including their defined contribution plans; many bolstered by automatic plan design features such as auto enrollment and auto escalation that encourage individuals to take action.
- Comprehensive health and wellness. Winners are intently focused on offering comprehensive health and wellness programs. All companies offer a wellness program and many extend this benefit to spouses as well. Several companies pay 100 percent of health insurance coverage.
Leading indicators of success
"These Principal10 Best Companies often view their employees as an extended family, but most also recognize there is a return on their investment in employee financial security," said Paul Spiegelman, chief culture officer of Stericycle and 2013 Principal 10 Best judge. "Employee satisfaction, customer retention, attrition rates and other key measures are quickly becoming leading indicators for success among growing businesses. This year's winners get that and are using it to adapt their company culture."
"Winning companies recognize the importance of focusing on employees' long-term financial security and go to great lengths to encourage participation and understanding of benefits," said Luke Vandermillen, vice president at the Principal Financial Group®. "One winner, for example, shows employees how much replacement income they will need in retirement and by communicating this figure, the company has achieved an impressive 16 percent employee deferral rate."
A diverse group, the 2013 winners cover a wide range of industries from construction to pet food. Winning companies range in size from 10 to 1,000 employees. This marks the 12th year The Principal has sponsored the program, which honors growing companies (five — 1,000 employees) for their commitment to employee financial security through outstanding employee benefits.
Vandermillen added, "A common thread among winners is they don't go it alone. They seek feedback from their employees as well as financial advisors."
And the winners are.....
The Principal 10 Best Companies for Employee Financial Security—2013 :
Learn more about the winning companies at www.principal.com/10best.
About the Principal Financial Group
The Principal Financial Group® (The Principal ®) is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $466.2 billion in assets under management and serves some 19.0 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.