Money & Life Summer 2010 Issue Single Gear 2009 10803

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Manage Your Money & Life: Quarterly Newsletter for Small Business Owners.

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Money & Life Summer 2010 Issue Single Gear 2009 10803

  1. 1. -XVW +RZ 8QWRXFKDEOH $UH <RXU (PSORHH %HQH¿WV A Newsletter for Small Business Owners he perks are as important as ever… here are ways to get the most for what you pay. Benefits aren’t the largest sum you pay out to compensate your team – they make up 30% of the total for the average company by some measures1. As motivational tools go, they might not rank at the top either, since salaries and time off often carry more weight in negotiations with recruits. Still, there’s no overestimating just how important employee benefits are in today’s economy. The bottom line is they keep your team focused and motivated. And as a result, they keep your company competitive and productive. The fact is employees put more weight into the health, retirement, insurance, dental and other coverage they get on the job than you might think. Consider the following: According to a recent Guardian survey2 nearly 60% of the employees interviewed said they’d take a pay cut or forego their raises or bonuses in order to keep their benefits intact in the current economy. Almost half of the participants, in fact, said they would be willing to pay part or all of the cost of their benefits. The recent recession has underscored just how much weight workers put in their benefits. Can you blame them? For one, employees have needed a morale boost during a tough recession, a way to soften the effects of the downturn. Many feel a solid benefits package makes up for a number of belt-tightening measures, from salary cuts to increased workloads, that workers have had to shoulder during layoffs or hiring freezes. It’s only logical, after all: Benefits are a big comfort because they offer employees a way for them to take care of themselves and their families no matter what the economic climate. Studies show that you and other business owners already get the message. According to research compiled by the insurance industry organization LIMRA in August 2009, employers recognize the importance of offering workers an array of benefits. There’s a problem, of course: Cost. The same 2009 LIMRA survey showed that over 80% of business owners were gravely concerned about their ability to afford medical and other employee benefits. You needn’t expend a lot of energy to find solutions. A few simple steps in fact, can keep costs in check and at the same time help you get the most out of the benefits you already provide employees. Choice. Gone are the days when employee benefits were a one-size-fits-all strategy. At the same time, the 100% employer-paid benefits package is a thing of the past as well. Fortunately, voluntary benefits help to fill the gap. They are available for everything from medical coverage to life and disability insurance and allow you to provide your workforce a wide variety of choices at an economical price. When shopping with carriers, your company’s size can help you secure discounts for employees. What’s more, voluntary programs come with many price points and options that allow individual employees the opportunity to tailor coverage to their own needs. At the same time, they transfer the burden of key benefits from you to your employees. Call it a win-win strategy. (continued on page 2) 7 H I G H L I G H T S 1 2 3 4 Ju st H o w U n to u c h ab le A re Y o u r E m p lo y e e B e n e fi ts T h e B e st S afe ty N e ts fo r Y o u r P artn e rsh ip R e c o rd M an age m e n t in T o d ay ’s C re d it S traigh tjac k e t D isab ility In c o m e In su ran c e 1 Bureau of Labor Statistics, E mployment Cost Index, March 2010 2 Benefits Behavior: Spotlight on Benefits and the E conomy. The Guardian Life Insurance Company of America, 2009 SU M M E R 2 0 1 0 ISSU E Michael Pitkin (408) 392-7849 Direct Financial Representative/Registered Rep michael_pitkin@glic.om Pacific Advisors 1740 Technology Drive, Suite 550 San Jose, CA 95110 www.pacificadvisors.com Pacific Advisors www.pacificadvisors.com Registered Representative, Park Avenue Securities, L L C (PAS). California Insurance L icense # :0D45813 Securities products and services are offered through PAS, an indirect wholly owned sub sidiary of The G uardian L ife Insurance Company of America (G uardian), N ew Y ork, N Y . Pacific Advisors is not an affiliate of PAS or G uardian. PAS is a memb er FIN RA, SIPC.
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