Hansa Gyvybes Draudimas (Hansabankas’ life assurance arm) prefers staff motivation over the strengthening of staff loyalty
2008-03-06 Back
Hansa Gyvybes Draudimas (which belongs to Hansabankas group in Lithuania) has offered to business companies a new staff motivation model. According to it, companies are encouraged to enter into life assurance contracts with their employees and pay in premiums for them, meaning that insurance sums will be transferred to employees’ life assurance accounts, thus enabling the staff to start managing the invested assets according to their wishes.
Says Mindaugas Jusius, Director of Hansa Gyvybes Draudimas: "As the domestic labor situation has been changing fast of late and calling for a sharper focus on retention of good employees, we have launched a new staff motivation scheme that is expected to satisfy both the employees’ and the employers’ needs. We have taken into account relevant international experience and believe today that such a motivation model creates a financial security sense to employees and strengthens their trust in the employer who, in turn, comes the winner too given that more motivated people work for it". According to the Director, the employer has no longer to establish terms and conditions for the passing of life assurance contracts to employees, and each employee does not have to wait for the contract to be passed and the accumulated insurance sum transferred to him/her.
According to this new Hansa Gyvybes Draudimas-launched staff motivation model, employees enter into life assurance contracts by themselves and administer such contracts and manage the paid-in premiums on their own, whereas the employer is committed to paying in premiums and establishing terms and conditions concerning increase of premiums depending upon employees’ length of service with a given company, job performance and other related indicators.
This new staff motivation model is useful for the employer because of lower administration expenses (simple and clear fees; easy process of entering into life assurance contracts; no need to vary terms of life assurance contract during its life; no legal responsibility for investing of premiums) and flexible terms (possibility to choose sizes of premiums; plain procedures of transferring of premiums to employees’ life assurance accounts; possibility of paying of premiums irregularly).
The abovementioned scheme is also attractive to employees since it creates a financial security sense to them given that they are free to administer life assurance contracts on their own and choose investment options individually depending upon tolerance of levels of risks involved. Furthermore, they may increase the premiums by paying in their own money into the same life assurance accounts. Besides, each employee can always check (via Hansabankas internet banking facility, hanza.net) how much money is allocated for his/her motivation and what life assurance sum is held on his/her life assurance account indicated in the contract and is free to choose whether to continue saving or withdraw a part or all paid-in premiums.
