Executive Turnover and the Great Resignation: Using Benefits to Increase Executive Retention
It feels like every day new statistics come out that show professionals are leaving their positions for greener pastures. “The Great Resignation” has a grip on the American workforce, and executive turnover is a glaring result of this trend.
In fact (to cite one of those statistics I mentioned), the American College of Healthcare Executives survey on CEO turnover showed CEO turnover rate hovering at around 18%, and similar studies from The Conference Board, Heidrick & Struggles and ESGAUGE, showed that CEO turnover has picked up again across industries. If CEOs are making moves in the job market, you can believe that other high-level executives are as well.
It’s time to get creative with the types of benefits that we are offering our executive level team members in order to show that we value their impact to the organization and increase our chances of retaining them on-staff.
Using Benefits to Reduce Executive Turnover
While your executives likely have access to all of the great benefits that you already provide to your entire team, their needs are different enough that it’s worth your organization’s time to consider additional benefits for these high wage earners.
One example is the benefit of long-term disability. While group long term disability is a great option for your entire organization, this benefit usually covers 60% of income with a max of $5,000 per month or $60,000 per year. Your company’s executives will not be fully covered by this benefit if they are unable to work for an extended period of time. Essentially, you’re paying your executives an excellent wage, but it is unprotected if something were to happen to them.
The gap between this amount and their usual wages can be a stressor for executives, enough of a stressor that the inclusion of an executive-focused benefit elsewhere could be the deciding factor between an executive staying in their role at your organization or moving on to their next career move.
We are currently in the midst of a Great Resignation, which is affecting even the professionals in your organization’s highest ranks. It is up to employers to protect their executives beyond their W2 compensation, and get creative with the benefits (financial and otherwise) they offer in order to retain this top talent. But, you don’t have to do it on your own.
The M3 Financial team is focused on providing our clients with creative and innovative ideas that fit their company culture in order to better attract and retain executives, along with other top-performing talent. Reach out to Chris Henderson, Managing Director of M3 Financial, to learn more about what benefits might make sense for your organization to add to your executive recruitment and retention strategy.
Investment advisory services offered through Global Retirement Partners, LLC, dba M3 Financial, an SEC registered investment advisor.