Benefits play a large role for executives

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The cost of living is always rising, retirement planning is essential, and medical costs go up annually. |ret||ret||tab|

A good benefits package addresses these issues, but how much impact does the benefits package really have when executives consider changing companies? According to Scott Christiansen of The Christiansen Group Inc., an executive recruitment firm based in Springfield, "It's a tough employment market right now, and companies have to be aggressive with both compensation and benefits." |ret||ret||tab|

Christiansen believes that benefits are looked at almost equally with salary when someone is considering a new position. "Some benefits, such as stock options, are rolled into the compensation package, but to me stock options look more like a benefit," he said. "And of course, medical bills can get very expensive very quickly, so medical coverage is important. These days, most big corporations offer excellent medical benefits; the small and mid-sized corporations have to catch up."|ret||ret||tab|

Relocation package|ret||ret||tab|

But Bill Belle Isle of F-O-R-T-U-N-E Search Consultants, a local franchise office of the national executive recruiting firm, had a different perspective. "The question of ongoing benefits always comes up, but I don't know if it's much more important now than it was 10 years ago," he said. "Probably more important when a potential employee is considering a job offer is the relocation benefits package. Out-of-pocket relocation costs are much higher than they used to be; companies will typically pay to move family and household goods and for temporary living expenses. They may also pay closing cost for buying and selling homes for key position employees."|ret||ret||tab|

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Ongoing package|ret||ret||tab|

In an ongoing benefits package, most potential employees want medical and dental coverage and senior management candidates will negotiate for an extra week or two of vacation," Belle Isle noted, although, he added, companies typically are not happy about acceding to that request. "Senior managers will often also ask for a signing bonus, and a performance bonus as well. There is often negotiation on medical insurance, since some companies pay the full boat, and others won't," he said.|ret||ret||tab|

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401(k) desirability|ret||ret||tab|

Christiansen, on the other hand, pointed to 401(k) programs as an important benefit that influences choices. "Since the employer is matching a percentage of your own savings efforts," he said, "and compound interest really adds up over the years, this can be a very desirable benefit to have."|ret||ret||tab|

John Gafner of Gafner and Associates, a professional and technical recruitment firm, said that the size of a benefit package "depends on whether you're dealing with a very high executive in a company, like a president, rather than a senior engineer or sales manager. When someone is considering employment that pays $35,000 yearly, they're looking for health insurance and a week or two of vacation and holidays. Top executives will expect the same level of benefits they had at their former company, which might include a company car, country club membership, and stock options." |ret||ret||tab|

What percentage of salary does a benefit package represent? Although statistics are hard to come by, Gafner gave the example of automotive workers having a benefits package that is in the range of $20 per hour on top of their hourly wage. Union strength, company size, and location are all factors in determining benefits, he said.|ret||ret||tab|

"It also depends on how long the company's been looking for a person to fill a particular slot, the candidate's level of experience, and whether he's coming in at top or being groomed for a top spot," Gafner added. |ret||ret||tab|

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Typical benefits|ret||ret||tab|

According to Belle Isle, these days the typical executive benefits package includes some level of medical and dental coverage, a 401(k) program, retirement benefits, short- and long-term disability coverage, and paid vacations and holidays. Some employers also add educational benefits that cover tuition costs for advanced degrees. Christiansen said he knows of companies where college grants and scholarships are available for the children of long-term employees. Companies pick and choose what they can afford to offer. "Larger corporations have an entire Human Resources staff devoted to nothing but benefits administration and management. Benefits are a big piece of what companies have to offer their employees," he added.|ret||ret||tab|

Although benefit levels vary by corporation size, apparently they can also be affected by specific geographic locations. Belle Isle acknowledged that large national companies set policies at the national level, and usually have generous packages they offer at all their locations across the country. |ret||ret||tab|

"However," he added, "our local companies don't feel like they have to offer as much, because people looking to relocate to Springfield are doing it because they want to be here. Either they're from here and coming home, or were here for a while and want to return. They float in from the coasts wanting a better lifestyle. So even at the executive level it's still a company game. If the employee sees living in southwest Missouri as the major benefit, then the company's benefit package can be slimmer than what they offer in another region of the country."|ret||ret||tab|

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