TM - December 2007 - (Page 31)

recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning BRINGING RETIREES BACK: NON-CASH INCENTIVES FOR RETURNING EMPLOYEES Daniel Margolis Retirement is intended to serve as a permanent exit from the workforce. But with demand for talent high, many organizations are looking for innovative ways to encourage retirees to continue working. Enticing retirees to return after retirement requires more than just cash, however. Noncash incentives play a big role as well, and if a company can structure these incentives in a way that gives comfort to a retiring individual, all the better. Such is the case at Principal Financial Group. Principal has partnered with Manpower to create its “Happy Returns” program, which allows Principal retirees to continue to work for the company as temporary employees. “They may be coming back for a project, or they may say, ‘I want to work from April through August,’” said Kathleen Souhrada, assistant vice president of recruiting and diversity for the Principal Financial Group. “So, they set a time that they want to work, and then they return to work on a project or whatever it might be through Manpower.” That type of flexibility is one of the non-cash incentives that brings retirees back to Principal. Another is access to the company’s wellness center, which helps keep seniors active and interacting with their peers, essential elements in an individual’s golden years. “In the mornings, walking in, if you visit the wellness center about 9 o’clock, you’ll see that the majority of folks who are on the treadmills or in the classes are the retirees,” Souhrada said. “It’s really cool, because they’re a community unto themselves. Wellness is about social wellness as much as it’s about physical wellness.” Principal’s wellness center offers many facilities and services, including different types of exercise equipment from treadmills to bikes, Souhrada said. “We have a walking program that organizes walks to different destinations within the city at different times of the year. We have personal trainers on-site that work with retirees or those over age 50 on specific needs they may have such as mobility or flexibility issues.” Principal also offers access to the company’s on-site pharmacy, another non-cash incentive for returning retirees that is of particular significance, since prescription medication is often part of the picture for individuals of retirement age. “The pharmacy group that operates is the same provider of our pharmacy benefits, so that makes them familiar with our plan,” said Rhonda Clark-Leyda, corporate relations for Principal Financial Group. “This allows retirees to continue receiving prescriptions reliably and conveniently, particularly because the pharmacy is full service and affordable. “Care Center, the group that provides it, allows us to have over-the-counter medications and things that you’d find in a traditional pharmacy, at rates that are usually very competitive, if not less than what you’d find in a pharmacy in your neighborhood,” ClarkLeyda said. “It’s a much smaller setting, so it’s a little more intimate and close knit.” According to Souhrada, Principal’s retirees aren’t the only ones deriving benefit from the “Happy Returns” program. The company receives benefits as well, and not just from being able to hire people back. “One of the reasons we try really hard to continue that community within our retiree group is that we find it to be a great source of employee referrals,” Souhrada said. “Retirees are great proponents of the company. When a retiree comes back and works for us with Manpower, we’re finding that they stay abreast of company initiatives, they understand where new job openings are occurring and where growth is within the company, and they become advocates for the company. They’re out helping us find great talent in a very tight labor market.” 30 talent management magazine www.TalentMgt.com http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - December 2007

Talent Management - December 2007 Editor's Letter Contents Letters to the Editor Human Performance Leading Edge Capabilities The Engaged Difference: What People Want Analytics in Talent Management: The Sports View The Use of Merchandise for Employee Recognition Taking Aim at Performance Appraisals Talent Management Drives Organizational Change Generational Diversity: Mastering the Boomer-X-Y Divide Dashboard: Security-Savvy Workforce: Designing a Security Awareness Program That Works Application: Hilton Hotels Corporation:Checking Out the Merits of Paperless Efficiency Insight: Unlimited Engagement: Innovative Corporate Communication at Deloitte & Touche USA Advertisers' Index Editorial Resources Foundations

TM - December 2007

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