MassMutual Employee Value Proposition
Massachusetts Mutual Life Insurance Company, known as MassMutual is an American mutual life insurance company. The company was found in 1851 and has been helping over five million clients across the country. The company headquarter in located in Springfield, Massachusetts and employs over 7000 employees in United States. (MassMutual, 2018) The fortune 500 annual report, the list complied and published by Fortune Magazine, ranks MassMutual at 76th in the list by its total revenue for the respective fiscal year. (Wikipedia, 2018) There are many factors lead to the success of the company. One of the key factor is the recruitment and retainment process of top talent people as well as offering a lot of outstanding benefits to employees. There are several employee value proposition programs that company offers, including: Career sampling program, compensation, benefits, and extensive training. The purpose of this report is going to provide examples of the company’s employee value proposition, organizational initiatives that MassMutual could potentially introduce to employees, example of how the company measures the return of investment of the current employee practices, and how the company could potentially measure the EVP practices.
MassMutual core value is helping people to achieve their financial freedom. A career with MassMutual means the employee will help customers to protect what matters most for their life. Therefore, in order to make sure this career is a right fit for the applicant, the company create a “Career Sampling” program. This program helps applicant to have a clear understanding and exposure to the daily activities and experiences of a Financial Service Representative. In this process, the applicant is able to work closely with a mentor from a local agency. This process provides an opportunity for the applicants to understand more about financial services practice and ensure the company recruit and retain top talent. This EVP program also ensure the employee’s belief and behaviors are in alignment with the employer’s core values and company culture. (Gausepohl, 2017)
After going through the “Career Sampling” program, the Financial Services Representative will qualify for a full-time career contract with the General Agent of MassMutual after meeting the production requirements and think that this is a good fit for their career. The employee will receive the compensation and all the benefits. The compensation is offer with a full match of annual Social Security and Medicare contribution, vested residual income, performance-based incentive compensation, allowances, bonuses and awards. Beside that the full-time employee will receive a benefits package including: Medical coverage plus Dental and Vision, Life and Accidental Death and Dismemberment, short and long-term disability, health spending accounts, total retirement savings program, known as 401(k) and non-qualified thrift plan, top producer incentives and adoption assistant. These compensation and benefits package has a significant impact which motivate the employees to make a long-term commitment with the company and a peace of mind to them and their love one. (Career Sampling, 2018)
When the employee begins this journey, some of them have no experience with the financial services industry. The company offer a lot of training opportunities to help meeting all the needed skills and meet the long-term career goals. MassMutual creates a MassMutual University, an online study program, to show employee new and innovative approaches to learning that can positively impact on their practice and clients. The company customizes all the training and educational program that fit with a different phase of employee career. There are many different programs offer at MassMutual, such as: joint work, instructor-led classes, training workshops and seminars, assistance obtaining license, mentoring programs, continuing education discounts, and activity tracking system. MassMutual understand that employees are the foundation of what makes the company strong, stable, and ethical business; therefore, these training and learning assistance will create a true value for employee’s knowledge and experience. (Career training, 2018)
Nowadays, the financial services industry is one of the most competitive industry around the globe. There are many big competitors such as Northwestern Mutual, New York Life Insurance, Morgan Stanley, Goldman Sachs that are heavily recruit best employee through social media, Indeed job service, and campuses. There are several organizational initiatives that MassMutual could apply to make a greater business and bring a lot of advantages to the organization. First of all, beside compensation and benefits, EVP practices should be focus in recruiting efforts. Recruitment tool plays a major role to find the most talented people. The company highly encourage taking its employee value proposition to campuses and offer internship opportunity to college students. (Adrienne Fox, 2012) The company can connect with the college of business to create program that inspired those who is passionate helping other people and want to learn how to become a Financial Services Professional through a career fairs, seminars and workshops. The company EVP’s should motivate employees to become a MassMututal brand ambassadors, so that they can be the strongest and most effective advocate for the business. This can attract referrals from the current staff or alumni. (Jorgen Sundberge, 2018) Secondly, with the growing demand for work-life balance from employees, there are many large corporation today have some sort of wellness program for their employees. The wellness program can have a significant impact to employee health, mental, and social life. This program can be promoted through social challenges or exercise campaign among employees. The company should promote a free smart watches and fitness bands. These devices will pair with their mobile apps and website allow each individual employee to keep track of their health and wellness goals. There are several advantages to this program, for example: the HR department will be able to track health and productivity goals for the company so that employer can create strategies to reduce costs of absenteeism caused by illness. (Accenture, 2018) This EVP can create a competitive advantage for the company to distinguish itself from its competitors.
At MassMutual, the company measures the return on investment of its currently employee value practices based on hiring cost, the amount of production, commission and bonus that employee can produce annually, better brand reputation, employee engagement.
Regarding about the way to measure the EVP practice in recruitment process, MassMutual can measure the ROI by looking at hiring, advertising, onboard cost, number of applicants, etc. to see whether the cost is reduced. Also, ensure the EVP messaging is deliver properly throughout the company communication and keep track of the number of referrals increase as a result of the EVP project. (Jorgen Sundberge, 2018) In addition, the way to measure the EVP of a wellness program is the productivity by using an app to track the effectiveness of the program effect employee’s work attitude and production.
In conclusion, it’s clear that hiring and retaining people are the biggest challenges for every company nowadays. It’s crucial to develop an employee value proposition in order to create a balance of rewards, satisfaction and recognition for the employees at the work place. Therefore, this report provides a clear examples of the MassMutual’s employee value proposition, organizational initiatives that company could potentially introduce to employees, example of how the company measures the return of investment of the current employee practices, and how the company could potentially measure the EVP practices.