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Impressing on employees the value of retirement benefits can seem like one of the all-time great managerial
challenges. But not if you present the benefits as simply as you would a saving account, discovered Engineering Design & sales (EDS) CEO and
president Roy G. Gignac.
The Danville, Va., electronic design and manufacturing company now issues each eligible employee an ersatz
passbook for recording profit-sharing vitals: the company's contributions and interest earned. "Most companies hand out certificates at the
end of the year telling employees how much they've socked away," Gignac Says. "It gets stuffed in a drawer and forgotten. I wanted my profit
sharing to have a more immediate effect on my employees -- to be a reason to stay with my company. And I wanted to make it easy for them to
understand how much we're doing for them."
On the first Tuesday of every month, the EDS accounting department makes the appropriate entries, based on the
previous month's profits. "Employees can see their hard work pay off on a monthly basis, which is much more rewarding than yearly. And
they take a more active interest in the plan." |
