Life Insurance for Employees: The Solution to the Problem of Retaining Talent

The labor market is gradually getting younger with the young generation of 8X, 9X employees, along with integration, globalization and the convenience of the Internet, the opportunity to find a new job is easier than ever. Therefore, the trend of "job hopping" is becoming more and more popular. Salary increases and bonuses are no longer the magic key to the human resource problem. Instead, benefits that show long-term concern such as life insurance are increasingly creating advantages for businesses in attracting and retaining talent.

Director of Chien Thang Trading and Construction Joint Stock Company in Can Tho presents insurance compensation under the contract with Prudential to the family of an employee who has an accident. Photo: PV

Competitive advantage in talent attraction strategy

Leading management professor Dave Ulrich has researched and proposed a modern human resource management method focusing on investing in people at 3 levels (clearly presented in the book Human Resource Champions). The first two levels are the capacity and dedication of employees that businesses need to focus on training. The highest level that every human resource manager wants to aim for is the quality of life and long-term happiness of employees.
One of the options for level 3 - the highest level of human resource management - that many businesses have applied is to buy life insurance for employees. This is a practical investment that shows concern for the personal and family lives of employees, can help them feel secure at work and shape a long-term commitment to the company.
In addition, according to Clause 2.6b, Article 4 of Circular No. 96/2015/TT-TC dated June 22, 2015 of the Ministry of Finance guiding on corporate income tax, it stipulates that expenses are not deductible when determining taxable income. Therefore, purchasing life insurance is not only a point to attract human resources but also contributes to business efficiency.
A support system to help employees stand firm in the face of life's upheavals
Thanks to the protection of the life insurance contract that the company provides, employees can temporarily put aside their worries about possible risks in life, as well as feel somewhat secure about their financial future. For employees who have been with the company for a long time, personal retirement insurance can be considered by the company as a recognition for the working process. Interest from the retirement fund and especially the golden age benefits when retiring can help employees feel more secure about a comfortable retirement age.

In particular, for workers who are the financial pillars of their families, life insurance will play a role and have practical meaning. When unexpected risks occur, the compensation paid by the insurance company will become a "lifebuoy" to help workers and their families overcome immediate financial difficulties and soon stabilize their lives.

Exactly one month after joining, an employee of the company unfortunately died in an accident and was quickly paid more than 170 million VND by Prudential. The business owner gave all of this money back to his family to encourage and help them overcome the tragic situation before them. As the only son and the main breadwinner in the family, the loss was too great for his parents, young wife and young child.

In addition to the above insurance benefits, the Phu Dang Khoa Thanh Tai product of Prudential that the company purchased for its employees also has additional benefits of guaranteed education and the opportunity to receive the right to pass the exam. Therefore, these benefits will continue to be implemented by Prudential for the insured person, your child, according to the terms of the signed life insurance contract.

It can be said that the policy of treating employees through life insurance has become an effective strategy for businesses. To promote the effectiveness of this strategy, businesses need to have specific policies suitable for each type of employee.

Understanding that, Prudential Vietnam Life Insurance Company Limited has continuously improved service quality, continuously diversified products to meet different needs of customers, demonstrating the desire to become a companion of businesses in retaining and attracting talents./.