SERP+
Compensation for the Next Generation
A group of Harvard management and organizational experts recently wrote that for many companies the problems associated with hiring and retaining talented individuals are self-inflicted – “They’re simply not using a broad enough array of tools, sometimes because they don’t even know the tools exist,” they explained in the Harvard Business Review.
The Newcleus-sponsored 2022 Bank Director Compensation Survey also found that 78% of the directors, human resources officers, CEOs and other senior executives surveyed said it was harder in 2021 to attract and keep talent compared to past years. In response, 98% raised non-executive pay and 85% increased executive compensation.
Recognizing the evolving job market, the potential to fortify the definition of compensation and the struggle to attract and retain talent, Newcleus advisors developed a way to be more competitive. The Newcleus Supplemental Employee Retention Plan, or SERP+, allows boards and HR directors to apply the same approach for attracting and retaining C-suite level talent to any mission-critical worker.
SERP, Supplemental Executive Retirement Plan, has been the industry standard for securing longevity and loyalty from corporate executives, creating long-term plans with a promise of retirement income. While the name is similar, the concept of SERP+ is new, addressing what the next generation considers important for their financial future.
Newcleus compensation and retirement experts understand the importance of recognizing the changes in generational needs. While Baby Boomers may be looking toward retirement, younger leaders of the future are saying, “How do I pay for my child’s college education?” or “I can’t get a mortgage because of my unpaid student loans.”
By determining and developing what matters most to your best workers, SERP+ helps organizations attract and retain key talent by providing meaningful incentives that coincide with life events prior to retirement.
SERP+ plans can provide tax benefits for both the individual and the organization while building loyalty, addressing pressing career and personal challenges for your best workers and eliminating the enormous expense of hiring and recruiting. Benefits not available through 401(k) plans can be included along with voluntary tax deferral in a SERP+ plan.
Where can you find the right talent? Are the strongest candidates already within your current staff? With SERP+ you can develop a unique compensation plan that pertains specifically to the individuals you want to incentive and grow within your organization.
SERP+ can:
+ Address an employee’s near-term financial needs
+ Give the employee an option to defer current earnings for expected life events
+ Provide tax-related benefits and security for key employees
+ Secure long-term retention
+ Protect the organization from the loss of mission-critical employees
+ Meet all federal and state regulations
+ Eliminate the costs associated with hiring and recruiting
SERP+ provides an opportunity for your organization to stand out among the competition, retain your key employees and build a culture that matters to your entire team.