Attract and Retain Top Talent with Insurance Incentives
- by Christopher O'Sullivan
- May 18, 2020
- Updated May 19, 2020
- 6 min read
In the current climate, there is extreme competition between many businesses who wish to attract the right people to help bring their companies to the next level. Sometimes financial incentives are not possible or simply aren’t enough. A prudent business that uses a portfolio of insurance products as an alternate incentive could be the deciding factor for attracting top talent to their organisation.
First, let's discuss two of the standard ways that businesses could incentivise recruits and existing team employees using insurance.
1. Group Travel & Personal Accident Insurance
Group Travel & Personal Accident Insurance is a relatively cheap policy which covers employees for business travel and personal accident. Typically, people assume that the policy only covers staff while they are working and/or travelling on their company's behalf. However, a little known benefit to this policy is that it will often extend cover for employees and their families when they are on their own personal holidays. This includes access to medical helplines for employees, their families and their children.
Even if there are no covered losses during the year, both of these benefits can offer significant savings to the members of your team, senior staff, and their families over the course of a year without affecting the company’s claims experience.
2. Directors & Officers Cover
Your board of directors and high-ranking employees are potentially at risk of facing legal actions because of their work for the company. For Irish businesses, under the Companies Act 2014, your business cannot offer financial protection in the event of an allegation of wrongdoing unless it is successfully defended and refuted, a process which takes two years on average. The costs for a director to defend themselves can be substantial. Also, bear in mind that small-to-medium sized enterprises (SMEs) are typically more susceptible to claims.
A Directors & Officers insurance policy will help to protect your at-risk directors against any potential personal financial penalties that they could receive. As such, every company should consider a Directors & Officers insurance policy to protect their existing board and executives. It would be a very important incentive that you could use when recruiting new members of your team.
Now, consider a third and even more innovative approach.
3. Insurance for High-Net-Worth Individuals
A High-Net-Worth individual is generally considered someone with an asset value of €1,000,000 or more. Clearly, someone in this position will require an above-standard insurance solution to ensure that he/she is fully protected in the event of a loss. This is what a high net worth insurance policy offers. Some of the available benefits can save a high-net-worth individual thousands in the event of a claim.
Not all company directors will be high-net-worth individuals, but many are. When such persons are encountered, savvy businesses could entice new talent and encourage the retention of high-performing ones, by offering subsidies on the premiums for such insurance products.
Highlighted below are some key areas where a high-net-worth insurance policy goes above and beyond the market standard.
Standard home insurance policies assess the value of a property using standard rebuild figures, provided by the Irish Society of Chartered Surveyors or a similar body. These guides are quite good at calculating the rebuild cost of a home of standard construction with no unusual features. However, they do not account for above-standard building materials, unique features, or any other factors which may not be seen in a home built to a residential standard.
Setting the correct amount to be insured under a home insurance policy can be difficult for many persons. In that regard, high-net-worth insurers will happily arrange for an appraiser to visit the property and set an appropriate figure. Once this has been carried out and agreed, the rebuild cost of the buildings will then be guaranteed. In the event of a claim, the insured will be paid the full cost to rebuild to the same standard, even if this amounts to more than the sums insured on the policy schedule.
Hole in one cover
This policy is for the golfers you know. Some insurers will include Golfers Cover for the insured and their family as standard, covering them on most golf courses worldwide. Under this section, there is even cover of up to €1,000 should you sink a hole in one during an official competition, and are required to buy the clubhouse drinks!
Standard motor insurance in many countries, like Ireland, is written on a market value basis. So, in the event of a write-off or other insured total loss, the insured will receive the market value at the time of the loss. So, if an insured buys a brand new car for €50,000, drives it for three months, and then suffers an unfortunate loss, they are likely to be offered less than €40,000 to replace the car. High-net-worth insurers write motor policies on an agreed value basis. Therefore, if you insure your car for €50,000, that is what you receive in the event of an insured total loss.
Standard policies will have limits on who can drive the car, and most will not allow the insured to drive other vehicles. However, under a high-net-worth policy, the insured will have much broader cover. Some insurers will even cover the use of hire cars whilst you're abroad within the EU, which again, can save thousands per annum for a well-travelled family.
So, there it is. If you're looking for more talented workers to join your business, or creative ways to retain your top performers, consider insurance incentives. Such perks might just be what you need to cultivate the best talent in your industry sector.
Please note that insurance products vary from insurer to insurer, and so you should consult with a broker like Chris to confirm if you have the covers mentioned above or not.
Also, remember, you can use Sluamor if you're looking to buy any product and/or service. Send us a message via our Contact page if you'd like to discuss, or you can forge ahead and subscribe to share your procurement requirements.
Feel free to also search the list of business opportunities published on our website to see if they are any that suit you and your business.
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