Retaining and engaging key employees

Unity Construction

Unity is a construction company based in the West of Scotland. They were frustrated by losing numerous key staff to other firms in a very competitive market. This was costing them through loss of expertise, but it was also causing a direct financial burden through recruitment costs in regularly sourcing replacement staff.

Unity’s directors approached us to find out about employee benefit packages. Their hope was to provide something to their staff that would improve morale, enhance the overall remuneration package and, most importantly for Unity, keep key personnel at the company long term.

We worked alongside Unity to understand the structure of the company, We discovered the types of people who were being headhunted from the company, then discussed their typical needs and circumstances with the directors.

With a detailed understanding of the staff Unity wanted to attract and retain, we went on to complete a full  review of the group risk market. We provided the directors with tailored quotes and recommendations on group life insurance and group critical illness policies.

Unity Construction

The outcome

Following presentation of our advice, we agreed to establish a group life policy that would pay a multiple of salary on the death of any directors or senior staff.  The family of any other staff would receive a flat rate lump sum in the event of their death whilst employed at Unity.

We also established a group critical illness policy that would pay out should any member be diagnosed with certain serious illnesses. Directors would receive a flat rate benefit whereas senior staff would receive a multiple of their salary.

The combined cost of these policies was very affordable and Unity chose to pay their premiums on a monthly basis. As an allowable business expense, the company’s accountant confirmed that the premiums would reduce the corporation tax bill.

Unity’s HR department introduced the new policies as an additional employee reward, and this was warmly welcomed by the workforce.

Unity now have a benefits package that extends to more than just salary and pension contributions. Staff turnover has reduced and their competitors are finding it harder to attract key staff away.

The HR department is now looking at adding further benefits to the package, such as group income protection.

Cover will cease on insurance products if premium payments are not maintained. The Financial Conduct Authority does not regulate some aspects of Cashflow, Trust, Tax and Estate Planning.