The Principal Financial Group(R) today announces the 2006 winners of The Principal(R) 10 Best Companies for Employee Financial Security. The independent panel of judges who selected the winners praised the companies for their ongoing commitment to a broad range of benefits programs. Judges also cited the winners for innovation in expanding wellness programs, "auto pilot" retirement savings options and personalized employee benefit guidance at the worksite.
The national program, now in its fifth year, honors growing businesses (five to 1,000 employees) which offer excellent benefit programs that give employees an edge on achieving long-term financial security.
"Once again The Principal 10 Best winners are shining examples for other growing businesses. They´ve found ways to reach a balance between the cost of benefits and providing good employee security. We are proud to showcase them as role models," said Renee Schaaf, vice president at the Principal Financial Group. "These winners understand that great benefits help drive their business success, because it allows them to attract and retain the best talent out there. Rather than look at benefits purely in terms of cost, the winning companies consider great benefits to be an investment and a major contributor to their companies´ growth."
Judges said the exceptionally low turnover rates among the winners demonstrate the rewards of taking good care of employees. "We´ve had an up-and-down economy over the past few years, and we keep hearing about companies who are cutting back their benefits. Yet here we have 10 companies who year after year provide very high quality benefits to their workers, and who realize that they can be a successful organization if they have a good benefits program. They deserve to be recognized and their stories need to be told," said David Wray, member of the judging panel and president, Profit Sharing/401(k) Council of America.
This year´s winners come from a variety of industries including manufacturing, utilities, marketing, agriculture, engineering and financial services. The companies range in size from 80 to over 898 full and part-time employees.
The Principal 10 Best Companies-2006 are: Argon ST, Inc., Fairfax, VA; Central Iowa Power Cooperative, Cedar Rapids, IA; ITAGroup. Inc., West Des Moines, IA; Eastern Financial Florida Credit Union, Miramar, FL; GTE Federal Credit Union, Tampa, FL; Howalt-McDowell Insurance, Inc., Sioux Falls, SD; McNaughton & Gunn, Saline, MI; Michigan Farm Bureau Family of Companies, Lansing, MI; Wells Real Estate Funds, Inc., Norcross, GA; and West Bend Mutual Insurance Company, West Bend, WI.
Profiles of the winners can be found at www.principal.com. A summary of best practices gleaned from the winners will be published in a Best Practices Guide in January 2007.
Key Trends
Judges noted that The Principal 10 Best-2006 are at the forefront of not only providing strong benefits but finding ways to make benefits more meaningful to their employees. "We saw plenty of evidence that The Principal 10 Best Companies are looking for newer ways to help their employees. Whether it was immunizations or wellness benefits, financial planning or automatic enrollment, not only are winners providing the benefits but they are enabling employees to make better use of those benefits," said Dan McCarthy, consulting actuary at Milliman USA and member of the judging panel.
Judges cited these key trends among this year´s winners:
- An expanded commitment to wellness programs: "Employers are starting to see wellness´ return on the investment - that it reduces accidents at work, that it improves attendance, and that it can contribute to lower healthcare costs in general. It's fantastic to see how employees are embracing wellness, and really trying to incorporate that into their lives as well, " said Nancy Ayres, judge and general manager of Clipper Belt Lacer Company, winner The Principal 10 Best Companies-2004.
- More auto pilot retirement savings options: The Principal 10 Best winners are adding "auto pilot" features like automatic enrollment and automatic deferral increases to their retirement plans. Ninety-percent of the winners make target date or life time investment options available in their 401(k) plans.
- Growing focus on retirement income security: "We saw more companies looking holistically at all of the income needs individuals will have when they retire. That means an ongoing commitment in many cases to traditional defined benefit plans, more generous 401(k)s, strong long-term disability programs and even retiree medical, which is a tremendous benefit," said Nevin Adams, editor-in-chief of PLANSPONSOR magazine and a member of the 2006 judging panel.
- Stronger education and workplace guidance: Nearly every company provides some kind of one-on-one benefit guidance or financial planning at the worksite; some pay for personal investment advice.
"The Principal 10 Best shows there are employers who understand that there is tremendous value in providing great employee benefits programs. Individuals make job choices because of them. And they make life choices because of them. This recognition tells the community, current employees and job prospects that this is an employer of choice," said Dallas Salisbury, president/CEO, Employee Benefit Research Institute and judging panel member.
Expert Judges Determine Winners
A distinguished judging panel of business leaders and employee benefit experts worked with Mathew Greenwald & Associates, a premier market research company, to choose the winners. The names of the entrants were shielded from the judges until after they selected their winners.
The program judges included: Dallas L. Salisbury, president/CEO, Employee Benefit Research Institute; David Wray, president, Profit Sharing/401(k) Council of America; Nevin E. Adams, editor-in-chief, PLANSPONSOR Magazine; Karen Ignani, president & CEO, America´s Health Insurance Plans; Corey Rosen, executive director, National Center for Employee Ownership; Nancy Ayres, general manager, Clipper Belt Lacer Company; Dan McCarthy, Consulting Actuary, Milliman USA; Jeffrey McAulay, vice president, Moran Towing.
Judging Criteria
Companies were evaluated based on benefits the judges deemed most important in contributing to employee long-term financial security. Those benefits included retirement plans; strong medical coverage, including significant premium subsidies by employers; long-term disability options; group life insurance; accidental death and dismemberment coverage; medical and retirement packages for part-time employees; and effective communication methods to help employees maximize the benefit options. Judges selected winning companies based on the breadth of their benefits offerings - how well they cover major life events such as retirement and disability; and the depth of their benefits offerings - how much the company contributes in terms of matches or premiums. The judges also considered the overall commitment to employee financial security as demonstrated by how the company aligns its benefits to the specific needs of its employees and how the company helps employees understand and utilize their benefits.
About the Program
The Principal 10 Best Companies for Employee Financial Security is a nationwide program that searches for and recognizes small and medium-size companies that excel in providing for employee financial security. Entries for the 2006 search were accepted from February 1, 2006 through April 21, 2006. The program was open to any company with between five to 1,000 employees. To qualify, all entrants must have been based in the United States and have provided a broad range of employee benefits for at least five years. Qualifying companies must have, at a minimum, offered "traditional" employee benefits, such as those relating to retirement, health, life or disability. No entry fee was required, and employees of The Principal were not eligible to enter. Entry forms for the 2007 recognition program will be available in February 2007. For more information, visit The Principal 10 Best Web site at http://www.principal.com/theprincipal10best/index.htm
About the Principal Financial Group
The Principal Financial Group(R) (The Principal(R)) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies and national network of financial professionals. A member of the Fortune 500, the Principal Financial Group has $206.0 billion in assets under management and serves some 16.3 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
