Key Person Programs

The cost of turnover is extremely high: it’s estimated that losing an employee can cost a company 1.5-2 times the employee’s salary. Depending on the individual’s level of seniority, the financial burden fluctuates. For hourly workers, it costs an average of $1,500 per employee. For technical positions, the cost jumps to 100-150 percent of salary. At the high end, C-suite turnover can cost 213 percent of salary[1].

What would you do if you lost one of your C-Suite executives tomorrow?

As a successful employer, you invest significant resources in the hiring, training and retaining of key employees. Have you considered the impact to your businesses’ bottom line should you unexpectedly lose a top-level executive to a competitor or unexpected death?

Hold onto your top level executives.

Ascend Planning & Consulting, LLC can help you develop key person plans that create “golden handcuffs”. We can help develop and implement employee stock options or SERPS (supplemental executive retirement plans). Many of these plans may even be cost-neutral.

Plan for the unexpected.

Replacing a top level employee takes time and money. There are plans available which provide a death benefit that can help cover financial losses that occur at the death of a key person. This type of plan helps assure continuity of the business for employees, customers, and accounts payable.

Be prepared.

Contact us today to find out more information about how we can help you integrate key person programs into your businesses’ overall financial strategy.

[1] The True Costs of Employee Turnover (January 11, 2022, updated March 7, 2022)  https://builtin.com/recruiting/cost-of-turnover.