A.Y. McDonald Manufacturing Company
“The fact that we offer very competitive benefits keeps our turnover rate extremely low. When they come to work for us, they usually don’t leave.”
– Michael B. McDonald, President, A.Y. McDonald Manufacturing Company
Company Facts
- Location: Dubuque, Iowa
- Type of business: Manufacturer of products for water works, high-pressure gas valves for utilities, water pumps and industrial valves
- Number of employees: 352
- Founded: 1856
- Web site: www.aymcdonald.com
Benefit highlights
- 65% – 73% employer-paid medical insurance premiums for employees and dependents
- 401(k) plan with an employer match of 50% up to 4% of pay deferred, plus 3% non-matching contribution (for non-union employees); average employee deferral of 8%
- Defined benefit pension plan (for union employees)
- 100% employer-paid premiums for short-term disability insurance
Percent of employees participating in 401(k) plan: 92%
Greatest impact on financial security of employees: Despite the slow housing market and a resulting slowdown in its business, A.Y. McDonald has not laid off any employees. “We’re having a very slow year, but we’ve worked very closely with employees to minimize any impact on their financial security,” said Chad Huntington, Vice President of Human Resources, A.Y. McDonald Manufacturing Company.
Other interesting facts:
- Successfully implemented a wellness program in a union environment
- 401(k) plan includes automatic enrollment, automatic deferral increases and lifecycle funds to encourage participation and age-appropriate investing
Why Judges Selected A.Y. McDonald
Watch a video of comments from 10 Best judge, Marie Schram, director of human resources for LMI, one of The Principal 10 Best Companies—2007
Read the transcript
“The judges selected A.Y. McDonald for a number of reasons. First of all, their retirement program has been very strong. They have both a defined benefit and defined contribution program that shows that the employer has made significant contribution and investment in its employee’s retirement. Secondly, on the wellness area, they really show that they characterize themselves, I think, as perhaps a pioneer in the wellness area. And their initiatives in that respect have been very innovative and clearly have shown that the employer wants to help its employees lead a healthy lifestyle. And then thirdly, in the education area, they have really shone. They have had initiatives that have helped their employees to better understand the generous benefits and to use them in the best way. One example is that they’ve had retirement and benefits meetings geared toward those who are near retirement specifically. And those age specific sessions, we found, were quite important.”
—Marie Schram, 10 Best judge and director of human resources for LMI, one of The Principal 10 Best Companies—2007
