​How to Attract, Retain, Motivate and Reward Your Employees

The salary allotment plan is a voluntary payroll deduction program, allowing your employees to purchase life insurance and/or annuity products.

As the employer, you deduct the monthly premiums from participating employees’ paychecks and remit a check for their premiums.

The salary allotment plan provides advantages for both you and your employees.

Advantages for you

• Employee loyalty – Show concern for your employees’ welfare by offering a convenient way to purchase personal financial products to meet their unique needs.
• Increased productivity – By taking steps to protect their financial security, employees can focus and stay productive, while also having peace of mind.
• Easy administration – Modern Woodmen will send you a monthly bill for the total due from all participating employees.
• Flexibility – Choose which employee or employees can participate. There are no government participation restrictions. You only need three participating employees to establish and maintain a plan.
• Employer contributions – You can also make employer contributions if you choose. These contributions are treated as taxable wages to your employee.

Advantages for your employees

• Convenience – They don’t have to worry about forgetting payments because premiums are deducted automatically from their paychecks each month.
• Flexibility – Unlike group insurance plans, your employee selects the life insurance and/or annuity plans that best meet their needs.
• Ownership – In most group plans, coverage terminates if the employee leaves the company. With the salary allotment plan, the employee owns the life insurance and/or annuity he/she selects. If the employee leaves the company, he/she can select a different payment method and continue the coverage.
• Employer contributions – You can also make employer contributions if you choose. These contributions are treated as taxable wages to your employee.

While you can attract, retain and motivate your employees through an easily administered program, your employees are rewarded with a very convenient and flexible product.