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Think about the future and instill loyalty now
By In the current economic climate, owners of both small and large businesses must ask themselves many questions in order to prepare for their future. How will my business survive this economy? What do I need to do to increase revenue? How will I maintain and grow my business? One question that should be on every business owners mind is, “How will I retain the talented executives at my company that are key to the future success of my business?”
Competing for talent is always a challenge. It is critical for business owners to retain their most experienced resources, the people that are not only an important ingredient to the current success of the business now, but those key individuals who will be an equally important ingredient to future success. Even in a difficult job market with increased layoffs and the rise in the unemployment rate, talented people remain in demand.
At a time when many Americans are consumed with fears of reaching their retirement age without reaching their retirement goals to live comfortably, it is the perfect time for business owners to help their key leaders feel confident that they are prepared for retirement. In a recent study of non-qualified deferred compensation plan participants, 92% said that their deferred compensation plan is important to reaching their retirement goals.[1]
How does one do that?
With executive benefit plans in place, businesses will be demonstrating their loyalty to their key executives, and thus laying the foundation for future success. The professionals at Sapers & Wallack can provide plan participants with value retirement calculators, financial planning, and investment advice to help the executives plan wisely for their own individual goals.
While owners might be comfortable with their current executive compensation plan in place, now is the time to take a second look to see how well the benefits rank up against the competition. Reportedly, 74% of executives with a current deferred compensation plan in place said that the plan is important to their decision of taking a new job and 64% said that it was important to stay with a current employer when a plan is available.[2]
Sapers & Wallack can design a non-qualified 409A deferred compensation plan, a non-qualified supplemental executive retirement plan or an executive bonus plan for both small and large businesses alike. Whether a company has 10 employees or 1,000 employees, the experts at Sapers & Wallack can customize an executive benefit plan that will enable key executives to put away money tax deferred and most importantly keep the intellectual capital in house.
Although it is uncertain when the economy will improve, it is certain that it will rebound eventually. When it does, business owners must ensure that their key executives are still in their trenches, ready to capitalize and grow the business again.
Nancy MacDonald is the Vice President of Benefit Planning & Administration for Sapers & Wallack. Nancy has over 25 years of experience in executive compensation and benefits planning. Please contact her at nmacdonald@sapers-wallack.com if you would like to learn more about designing executive compensation plans to retain and reward key leaders.
[1] Nonqualified Deferred Compensation. July 2009. Principal Financial Group.
https://secure02.principal.com/publicvsupply/GetFile?fm=PQ8167H&ty=VOP&EXT=.VOP
[2] Nonqualified Deferred Compensation. July 2009. Principal Financial Group.
https://secure02.principal.com/publicvsupply/GetFile?fm=PQ8167H&ty=VOP&EXT=.VOP