Nobody was planning for the pandemic, but everyone should be planning for what comes next. For Canada’s law firms, that includes preparing for a potential rush to the exits.
Now that nearly three quarters of Canadians over 12 have been fully vaccinated, as of August 14, research suggests that more employees that ever may be looking for a fresh start. According to a recent survey1:
- 52% of North American respondents say they plan to look for a new job in 2021 – up from one-third in 2020.
- 46% feel less connected to their company than before the pandemic.
- 42% say their company’s culture has diminished over the past 15 months.
The cost of losing top talent
The price of losing a law firm’s top performer is significant. It includes opportunity costs (future business based on relationships), the expenses to recruit new talent and the strain placed on those left to pick up the slack.
Meet the challenge head on
There are no easy solutions for connection and culture. But one way to show your commitment to both is by acknowledging one of your employees’ biggest worries (preparing for retirement) and by investing in their financial futures. Participating in a defined benefit pension plan like DBplus can help your firm recruit talent on the move, retain stars and reinforce your reputation as a top employer.
The 3 Rs of defined benefit pension plans
Lawyers have long been left to their own devices when it comes to retirement planning. That adds a layer of stress to an already demanding career. Firms that offer a defined benefit pension have a distinct competitive advantage.
When you offer a financial path that culminates in guaranteed retirement income for life, you signal to prospective employees that they can focus on being their best today knowing their future is secure.
Keeping top talent is good for everyone. A secure retirement plan goes a long way toward creating a less stressful environment, with fewer sick days and fewer disability claims. Engaged employees are less likely to leave when they know the grass is greenest beneath their feet.
The grass is greenest where you water it.
Most firms live up to their reputations. The best places to work are the ones that are committed to their people. A defined benefit pension plan is a meaningful way to show that commitment.
A better pension plan model
Most firms are unable to put a pension plan in place due to high start-up and administration costs coupled with the pressure of taking on long-term fiduciary responsibility.
All those barriers have been removed thanks to the turnkey solution of DBplus and the strength of its financial backing through CAAT. As an existing plan with a stellar track record, it guarantees predictable, inflation-adjusted retirement income—for life.
|Type of plan||Defined Benefit (DBplus)||Defined contribution|
|Who contributes?||Employees contribute through payroll and employers match each contribution dollar for dollar.||Employees contribute through payroll and employers match each contribution dollar for dollar.|
|How is the money invested?||Invested by professional portfolio managers who have access to alternative investments not available to individuals.||It’s up to the employee to decide how to invest. They’re typically given a range of fund options based on their risk tolerance.|
|Retirement income||Guaranteed, predictable, adjusted for inflation and immune to market shocks.||Hard to predict and subject to market fluctuations before and in retirement.|
|What’s the risk?||No risk for the employee or the employer. Employees receive guaranteed retirement income for life plus other benefits including a no-cost survivor pension, inflation protection and early retirement options.||
Employees run the risk of outliving their savings. At retirement, employees have a bucket of money that remains susceptible to market volatility.
Whether you’re a partner or human resources leader, consider the advantages of DBplus as a way to reward your staff and reduce employee turnover. Let’s talk. Book a 20-minute meeting with our pension specialist to learn how DBplus fits into your firm’s overall plan.
1 Source: Achievers 2021 Engagement and Retention Report. Achievers Workforce Institute surveyed 2,000 employed respondents in February 2021.
Lawyers Financial products and plans are sponsored by The Canadian Bar Insurance Association (CBIA).
Lawyers Financial is a trademark of CBIA. CAAT Pension Plan is a trademark of Colleges of Applied Arts and Technology Pension Plan.