I was visiting a dealership out west in the oil and gas fields when they announced the following retirement program to their employees. Turnover had been high in this area because of the demand for qualified employees. This program went over extremely well and almost every employee signed up. I believe it is a great value to the employees, a way to retain employees, and attract new ones.
Group Gold Saving Retirement Plan (GSRP)
- Employees are eligible to sign up after a 90-day probation period.
- There are 4 sign-up options.
- $60 per month.
- $120 per month.
- $180 per month.
- Other amounts (above $180 per month) need pre-approval.
- They give the employees the ability to change the amount twice a year.
- The Dealer matches $1 per $6 (17%).
- The amount is managed internally and gold is purchased on behalf of all the employees in one gram increments. These one gram gold bullions are 999.9 pure 24 karat gold.
- The gram of gold is inside a credit card-sized package that is certified and easy to store safely.
- The gold is passed out at the end of each quarter or could be held to the end of the year and distributed as a year-end bonus.
- If employees have a separation of employment from the Dealer, they will be eligible to set up an account to continue to purchase gold on their own. This is one way to stay in touch with employees that left in good standing with the company.
- When this plan was started, the current price of one gram of gold was $60.00.
- If the employee runs into hard times, he can cash in his gold almost anywhere, instead of the dealer giving the employee a loan.
This Dealer Group feels it is important for his employees to have a retirement plan. As such, all employees who sign up at any level on the Gold Savings Retirement Plan, once the program was introduced, are immediately eligible for the plan. Each department within the Dealer Group will have a specific Gold Incentive Program that will go into effect upon signing up for Gold Savings Retirement Plan.
2008 was not that long ago and we all remember what happened to investments and 401K plans. I wonder how much productivity was lost by dealers, managers, support staff, and technicians talking about how much they lost. At least with some gold in their safe, they should feel a little better than employees receiving their 401K balance sheet in the mail and discovering they have lost 50% of their retirement. This is one way to help avoid lost productivity during the next downturn.
This Dealer truly cares about the well being of his team and employee retention. He is faced with competing with the oil companies and this is just another tool in his tool box to help retain his employees during good economic times and the bad ones to come.
If you dont have a retirement plan or you want your employees to have additional retirement plan options, this could be a great tool to help retain your employees.