Eugene Houchins On The Power Of Life Insurance For Recruiting

When it comes to millions of Americans' primary source of income, it generally tends to be direct income coming from full-time employment. Even with larger employers who traditionally were known to have great benefit packages, there is a trend nowadays to provide higher pay in lieu of benefits. This is especially true with start-ups or emergent companies and it generally happens because they don’t want the administrative hassle that comes with these benefit plans. Nevertheless, there are countless reasons why a company who goes above and beyond to offer life insurance to employees can turn an upfront expense into a powerful tool. According to a successful business owner and long-time life insurance agent Eugene Houchins, below are some of the main tips that an entrepreneurial newcomer should know.

Understanding the Long-Term Strategy

If an individual hears of an up and coming local business and decides to pursue a career, they typically expect that there will be some kind of tradeoff between wages and benefits. With smaller companies, particularly very new ones, there is the expectation that benefits will start low and work their way up over time. To this end, it can prove a very useful recruiting tool if these same businesses were to invest in their long-term success by offering benefits like employee life insurance from the very beginning. This will bring in better talent from the surrounding area, as even some of the most well-funded start-ups overlook the importance of these types of benefits. Successful company executives realize that their level of success depends on the quality of their work force. Moreover, they need to understand this strategy, as they should realize that having highly skilled employees is most important early on when a company only has a handful of workers.

Downturns in the Market Happen Frequently

As Eugene Houchins explains, drastic changes in the job market can happen most any year. The severity of these shifts is dependent largely on the region and the industry, but large shifts in the job market can be felt nationwide. An important tool for businesses wanting to maintain their employees during difficult hiring times is offering continuing life benefits along with disability options. An employee is much more likely to be understanding of the general job market and deal with fewer wage increases if that employee also believes that his best interest is to stay with his current company. Without life insurance and other benefits, that employee is likely to leave in search of better benefits in a safer industry or larger company.

Know What to Buy

As a business owner, it’s important to know exactly what to look for in a life insurance program. All group policies are not created equal. It’s easy to lose sight of the real benefits of a plan when focusing only on obtaining insurance in the first place or purely the cost. Also, not focusing on the expense of administering the program can lead to problems because the business owner and his/her staff can ill afford to spend much of their valuable time handling the life insurance program. It is particularly important to use knowledgeable life insurance agents and experienced program administrators to guide you in making your program meaningful and cost effective. Once the program put in place, these types of employers will most definitely enjoy more perks of attracting and retaining superior talent allowing better success for the company over the long road ahead.

Local Impact

While it may seem that an individual company, particularly one just starting out, does not have a major impact on the surrounding community, this is not the case. Here in Gilroy for example, even a smaller business can set an example for other local businesses. A small business who is attracting top talent as a result of life insurance benefits sends a message to the established businesses in the area that they need to adapt their benefits package or risk falling behind the curve. Additionally, these benefits improve the quality of life for Gilroy workers who previously may not have been able to afford a life insurance policy without employer assistance. When all is said and done, making an effort to offer this critical benefit will directly benefit both the company’s bottom line and their surrounding community’s way of life.