What Is The Key To Your Business Success?
Every effective business, no matter its sector or focus, have keys to success. Do you know the keys to yours? Are you protecting that keys in the best way possible? Read on to discover how to efficiently think about and identify the keys to your business’s performance and ways to ensure the continuation of that key’s success!
Identifying the Key. Who In Your Business Key?
Sometimes the key to a business’s success lies in external elements : Location, branding, third party consultants. the unique product offerings, the depth and breadth of inventory, levels of satisfied customers. More often, the key is an individual or persons within your business: You, the owner. A stellar employee. A marketing genius. A manager with exceptional people skills. A top salesperson. Instinctively, you know. Your thoughts go there often.
Once identified, you should make a list of specific life benefits that you currently provide to key individuals. After which, think about and make a list of benefits that are not part of your companies compensation benefits.
Your Key To Business Success.
- A recent 2018 study shows:
● 96% of businesses that offer benefits do so to increase and maintain employee happiness, health, and productivity.
● 75% of employees state that benefits are either extremely or very important to their well-being and financial health.
● Employers that offer voluntary benefits (such as dental, vision, or identity theft protections) correlate a growth in sales revenue with the adoption of these offerings.
● 34% state that being offered better benefits would “keep them in their current jobs.”
● 55% a position with less pay and better benefits is preferred over a higher paying job with weak benefits. They would consider staying rather than changing.
First and foremost, retention has to be a high priority. Keeping a key person engaged and loyal is significant part of retention. Maintaining a key employee working the business may seem obvious, however, without providing tangibles, competitors can woo the person away. Retaining first-rate employees should be at the top of any businesses agenda.
There is little doubt that happy employees are more productive and satisfied with their jobs and likely to remain with their current company. More often than realized, a significant commitment to employee appreciation and well-being involves being committed and recognizing each person as an individual.
Accomplished through interpersonal skills, community building, public and peer recognition management will please a large number of employees who will say they work at a good place. Management should never be complacent is their attempt to keep key people. Periodically review and keep an eye open alternative ways to satisfy those that you and they know are the “difference makers” in the success of the business.
Unique benefits, and related offerings will enhance the future for the businesses individuals, financial strength, and growth. Benefits are a catalyst to improve employee attitudes and retention.
What would you do?
Loosing a key employee will present multiple challenges. Beyond the sales or income loss, customers may flee to the competitor that hired the lost person. Word spreads fast in an industry. There is a perceived negative to your firm, cloud of doubt, suspicion of significant changes when knowledgeable successful experienced people go else where. Mistaken hires, training, recruitment costs a few issues that will increase expenses, as well.
Ownership and management’s role is to minimize the financial impact of unexpected events. A lose of a key person with its accompanying issues can be mitigated by a variety choices. Disability, temporary or permanent, is one of many events that could stall or hurt business. The loss of a key employee to disability can be devastating for your business.
Why Key Person Disability Insurance is Critical
Key person disability insurance differs from key person life insurance as it covers you if your key employee becomes too ill or is unable to work while still living. Your business can take out a policy that will pay benefits to your business if a key contributor becomes disabled due to injury or severe illness.
These benefits can then be used by your business for a variety of undertakings, such as:
- ● Covering the cost of hiring temporary or replacement staff.
● Maintaining financial credibility in the eyes of customers or creditors.
● Compensating the company for time and revenue lost during training and recruitment for the open position.
● Maintaining cash flow and profit margins in the interim period before a replacement is found.
The addition of a key man or key person disability plan for your company provides you with the peace of mind that if something devastating should occur, you will have the funds to continue operations and get back on track with financial assistance. Your business is too important–to you, your family, your customers, and your employees–for its future to be determined by accident or severe illness.
Key Questions to Ask Yourself
- ● Does my business have one or more public “faces” whose disappearance would result in loss of profit?
● Does my business rely on a certain individual with particular skills not possessed by other employees?
● How much of my business’s revenue is linked to individual staff? Are there employees who bring in high percentages of profit whose loss would result in financial hardship?
● Does my business have any irreplaceable employees, or employees whose replacements would be difficult or expensive to train?
If you answered “yes” to any of the above, the answer should be clear.
Disability Plans Options
Individual disability income and key man disability pay outs have differences due to the unique nature of a company’s needs. Most carriers and businesses agree, a replacement person can be put in place for a disabled key employee within a 1 to 2 years. These policies are written for a shorter term than a typical individual disability policy. Generally, a policy when written is most often offers a two payout option should a claim be filed. Read your policy carefully, like all insurance, the issued policy is the contract of record and is the final word in all matters of insurance.
The payout should a claim occur is tax free. Similar to key man life insurance, the premiums are not tax deductible. The policyholder and beneficiary is the business which maintains ownership once the invoice is paid. Your business’s disability coverage does not preclude an employee purchasing their from taking out and maintaining their own individual policy to protect themselves from lost income. In some cases of a closely held business, an individual policy can be advantacious to protect there ownership and lost income to support their families.
Protect your key person(s), protect your business. Find a qualified agent to discuss key person disability insurance and obtain some price points, today.