Human Resources: Changing The Employee Mindset From Entitlement to Engagement: It Can Be Done!

(Des Moines, Iowa) - From new, complex health care options to retirement plans driven by employee choices: American workers shoulder a staggering amount of responsibility for their worksite benefits and ultimately their financial futures. Employers, who face the challenge of just providing competitive benefits in a rising cost environment, also bear the weight of making sure their employees understand and use those benefits. Now a new guide shows how 10 successful companies have overcome those benefits challenges and are reaping the rewards of a loyal and productive workforce.

Published by the Principal Financial Group(R), Innovations at Work: A Guide to Best Practices in Employee Benefits outlines the experiences of The Principal(R) 10 Best Companies for Employee Financial Security - a group of small and medium-sized businesses (five to 1,000 employees) from across the nation recognized in 2005 for excellence in employee benefits programs. The guide is available at no charge at www.principal.com.

"Twenty five years ago, benefits were something employers did for employees. But with a shrinking pool of pension plans and rare instances of all-expense paid health insurance, a major share of responsibility for benefits has shifted to the workers," said Renee Schaaf, vice president, The Principal(R)^. "The new guide shows how The Principal 10 Best Companies are helping employees change the way they think about benefits-from a mindset of entitlement to engagement-while maintaining a top-tier benefits program. Employees are demonstrating their appreciation by working harder and sticking with their employers for the long-term."

According to The Principal Financial Well-Being Index- Fourth Quarter 2005, 65 percent of employees indicated that a good employee benefits plan encourages them to work harder and perform better. The Principal 10 Best are proof of that statistic with an average voluntary turnover rate of 9 percent, just half of their industry norms.

The 2006 guide shows how one-on-one guidance, automatic tools, and wellness programs are key tactics as The Principal 10 Best manage their benefit programs to:

Ensure employees have affordable and practical healthcare options
Motivate employees to participate in the company retirement plan
Educate employees about the specifics of their benefits packages and making the best decisions for themselves and their families

Employer Benefit Tools

The 2006 guide provides easy to use and flexible benefit tools for companies of all sizes including:

Informative narratives discussing how The Principal 10 Best Companies developed successful healthcare and retirement benefit programs that have a positive impact on the bottom line
Simple checklists that companies can review to determine solutions to their own benefit challenges
A comprehensive chart that allows companies to compare their benefit offerings with The Principal 10 Best (health, 401(k) options, profit sharing, pension plans, insurance, FSAs) and their peers across the nation
Examples of the retirement, healthcare and employee communication best practices effectively implemented by The Principal 10 Best
Profiles of each winning company and the innovative benefits they provide

"As we approach our fourth year of the guide, we have seen an increase in demand for it, both electronically and in print, from employers, financial professionals and business organizations," added Schaaf. "The number of guides downloaded from The Principal website has doubled to more than 12,400 in 2005. Even the winning companies tell us they get ideas from the guide."

The Principal 10 Best Companies for Employee Financial Security--2005 were selected by an independent panel of financial services and human resources experts, renowned for their expertise in employee benefits. The Principal 10 Best Companies-2005 are: Flexible Steel Lacing Company, Downers Grove, IL; American Council of Life Insurers, Washington, DC; American Lung Association, New York, NY; GuideOne Insurance, West Des Moines, IA; Campus USA Credit Union, Gainesville, FL; The Washington Trust Company, Westerly, RI; Southwest Power Pool, Inc., Little Rock, AR; Glatfelter Insurance Group, York, PA; Moran Towing Corporation, New Canaan, CT; Fremont Co-operative Produce Company, Fremont, MI.

About The Principal 10 Best Companies Program

The Principal 10 Best Companies for Employee Financial Security is a nationwide program that searches for and recognizes small and medium-size companies that excel in providing for employee financial security. Entries for the 2005 search were accepted from February 1, 2005, through May 1, 2005. The program was open to any company with between five to 1,000 employees. To qualify, all entrants must have been based in the United States and have provided a broad range of employee benefits for at least five years. Qualifying companies must have, at a minimum, offered "traditional" employee benefits, such as those relating to retirement, health, life or disability. No entry fee was required, and employees of The Principal were not eligible to enter. Entry forms for the 2006 recognition program will be available on February 1, 2006. For more information, visit http://www.principal.com/theprincipal10best/index.htm

About the Principal Financial Group

The Principal Financial Group (The Principal (R))[1] is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $188.4 billion in assets under management[2] and serves some 15.3 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

[1] "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

[2] As of September 30, 2005