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Chicago, Dallas, Grand Rapids

Valuable Services

Strengthening Human Capital for Success through Planning and Design

Attracting and retaining the right people are the primary factors that allow banks to increase the value of their human capital. Regulatory issues can arise, costs of funds may increase, loan demand fluctuates, competitive pressures ebb and flow, but every single year attracting and retaining the human capital to make any business successful is a top priority. Human capital is one of the smartest and financially strongest investments a bank can make.

  • We create plans that focus on the people you really need to keep.
  • We reinforce their commitment to your long-term game by creating the most efficient and effective mix of retention tools to instil the desired results.
  • That mix is your vision statement. Your vision of the best care for the best people that also provides a safety net for the bank. We call it benefit engineering and it is all about combining people, tools and corporate goals into a benefit-engineered design that instills long-term commitment while getting the corporate ball up the field.

In a community bank, this refers to handful of key people. In the area of human capital, this is where a nickel spent is a dollar gained. We’re talking about going on the offensive to protect against the loss of the highest producers.

Get to know the ones that have the highest return on your shareholder value. Typically, they are managers. Their talent is in how they lead and influence their team. As we’ve established, competitors are actively courting them online and in person like they haven’t done since the recession hit. So now we need make them an offer that keeps their eyes on the company ball.

We need to reinforce their commitment to your long-term game. We need to create the most efficient and effective mix of retention tools to instil the desired results.

Increased earnings with BOLI

There are not many resources or opportunities available to a community bank that can increase the average bottom line net income year after year. The effort required to increase net income is normally a substantial amount of work.

Adding value to your bottom line is easy with BankersBenefits’ BOLI. Investing 8 to 10 hours of time to educate your executive team and board of directors can pay off, as BOLI improves earnings per share, ROA and ROE while decreasing the efficiency ratio.

Bankers Benefits members, who are insurance agents, have access to the highest credit quality insurance carriers. Leveraging their combination asset diversification, active portfolio management, and long-term perspectives supports value and financial strength.

iCOLI: benefits that improve the bottom line

There’s nothing like a strong investment lineup with tax advantages. Insurance Company Owned Life Insurance (ICOLI), offers similar advantages to insurance companies as BOLI does for banks. Same with COLI and BOLI, ICOLI provides benefits such as being immediately accretive to earnings, becoming income tax-free if held to maturity, and providing tax-free death proceeds which are greater than the booked cash value. Is the light going on?

BankersBenefits provides insurance companies with the same advantages as banks and other corporations. With ICOLI from BankersBenefits incredibly qualified backers, now insurance companies have the potential for even higher yields, more favorable accounting treatment, and greater tax-deferred growth and tax-free death return.

The Right Tools for the Job

There are lots of tools in the market. They have names like stock options, phantom stock, restrictive stock, and acronyms like SAR, SERP’s, RSU, and BOLI. But here’s the deal, benefit options need to make sense to employees while allowing the bank to have innovative incentives structures that provide value for the money, making the most of the nickels the bank already has allocated to human capital.

Knowing there are only so many nickels in a dollar, weaving the two in a way that makes it work within the bank’s current budget is at the heart of benefit engineering. We seek to dial up the “long-term dedication” of employees without bulging the financial plan. The employee will feel “taken care of” while the bank will find a performance advantage in the “taking care of them” built into the mix.

Supplemental Retirement Plans (SERP)

Incentive and Retention Plans / Executive Benefits

Funding and Financing Options

Compensation and Employee Benefits

There is no cookie-cutter approach. Even in the same industry, every company’s vision is unique and players need to be inspired by benefits that secure them a better financial future according to their role. For the bank, having the players invested in them is a re-investment in the company’s future. An approach that is responsible to all and requires taking stock of the current situation and periodic assessments of how those match with the bank’s goals.

Act Like the Big Boys Do

Leaders in the community bank industry know how to act like the largest players do, while making every penny work twice as hard. A cornerstone of this is securing human capital with a benefit-engineered structure that focuses on top players. In order for this to occur, we need to reinforce the key player’s commitment to the long-term game, and simultaneously allow the bank the financial leverage that will give them an advantage in an economy that is returning to growth.

Benefit engineering, redefining and designing a plan, and moving employees from a focus on their compensation to an emphasis on hitting the company goals are key factors to banking success. Doing all of this while strengthening a bank’s human capital and their bottom line in the process: that’s simply a bonus of coming up with strategies that help you avoid the January Effect. Increase the value of how you compensate your key people and you not only attract the right people for your future, you will have honed your current human capital into a team you can bank on.

Bankers Benefits has carved its niche by working within correspondent bank relationships and has expanded to coordinate with and supplement the products offered by correspondent banks, state banking associations, and others to provide comprehensive benefit plans to the employees of its client’s banks.

Get in touch today and find how we can help you and your community bank.

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