Trends in the executive benefits space
The executive benefits landscape is continually evolving, influenced by various factors including economic shifts, demographic changes and, most recently, the Covid-19 pandemic. According to the MetLife 2021 US Employee Benefits Trends Study, several noteworthy trends have emerged that are reshaping the executive benefits landscape.
First and foremost, the pandemic has drastically altered employee priorities. Safety concerns have surged to the forefront, with employees now looking to their employers for comprehensive solutions. This heightened awareness of safety has compelled organisations to reassess their approach to benefits, recognising the need to play a more significant role in safeguarding their employees' well-being.
Furthermore, the needs of employees have been in a state of constant flux, necessitating a more adaptive benefits approach by employers. The pandemic has underscored the importance of flexibility and responsiveness in benefit offerings. Companies are re-evaluating their benefits packages to ensure they align with the changing needs of their workforce, which may include additional health and wellness benefits, remote work support and mental health resources.
One notable trend highlighted repeatedly in the study is the prevalence of employees obtaining protection insurance through their workplace. This highlights the critical role employers play in providing financial security and peace of mind to their employees, especially in uncertain times like the Covid-19 era.
For organisations, offering executive benefits is not merely a gesture of goodwill; it is a strategic decision driven by several compelling reasons. Firstly, the cost of replacing key executive talent is exceptionally high, as illustrated by findings below from the Society of Human Resource Management (SHRM) & Center for American Progress.
High replacement costs making it imperative for businesses to invest in retaining their top talent through attractive benefit packages. Executive loyalty can often be directly linked to the satisfaction derived from these benefits, reinforcing the need for robust offerings.
Additionally, executives who are highly satisfied with their benefits are more likely to remain committed to their current employers, reducing turnover and maintaining continuity in leadership. In essence, executive benefits are an integral component of talent retention and succession planning.
With over two decades of experience, Executive Benefits Group, a division of One80 Intermediaries, has been at the forefront of innovation in the executive benefits industry. Led by managing director Dan Aceti, the company has established itself as leader in the field, specialising in corporate supplemental disability income protection programs.
The company’s proprietary benchmarking analysis tool, honed over years of data collection, sets it apart in the industry. This tool allows it to provide invaluable insights to organisations, including benchmark data for crafting customised executive benefit packages. By leveraging this data, Executive Benefits Group can design competitive packages that aid in both recruiting and retention efforts.
Importantly, its executive benefit packages are structured to complement short-term and long-term incentive plans, creating a holistic approach to talent management. Remarkably, the total expenditure for these packages remains under 3 percent of covered income, offering a cost-effective solution for businesses looking to enhance their executive benefit offerings. Sample benchmarking case study included below:
In conclusion, the executive benefits landscape is continually evolving, shaped by changing employee priorities and the strategic imperatives of organisations. In the Covid-19 era, safety and flexibility have taken centre stage, leading to a reimagining of benefits packages. Companies that invest in executive benefits are not only safeguarding their key talent but also positioning themselves for long-term success in a competitive business environment. Companies like Executive Benefits Group are pioneering innovative solutions to help organisations navigate these evolving trends and secure their executive talent for the future.