American Family Insurance joined the crowd of companies giving bonuses to and investing in their employees, thanks to tax reform. This includes a bonus, expanded tuition reimbursement, more family leave, a raised minimum wage, and more contributions to non-profit organizations.
Below is the company’s release:
“American Family Insurance continues to invest in its people, communities and customers as a result of the reduced federal tax rate. The company will use the tax reform to enhance employee benefits and reinforce the company’s commitment to its people for putting customers first and remaining an employer of choice. In the longer term, customers are expected to benefit, too, with the tax savings impacting pricing.
“Among the new benefits is a $1,000 one-time bonus for 11,000 employees, excluding officers and the board of directors, at American Family. This bonus is made possible because of the reduction of the federal corporate tax rate in 2018. The company’s independent contractor agents will also have the opportunity to earn a higher incentive for strong customer satisfaction. Over time, tax reform benefits will influence the company’s return on equity and have a favorable impact on pricing for customers.
“'Our success rests with our people who are dedicated to helping our customers,” said Bill Westrate, American Family Insurance president. 'These changes demonstrate our commitment to our people, today and into the future, with expanded benefits and educational support, and to the communities where we do business,’ he said.
“Enhanced benefits also extend directly to nonprofits that support communities. In 2018, American Family will contribute $10 million to its Dreams Foundation which supports programs and provides grants to nonprofits. This year the Foundation will provide a one-time 2-to-1 match for employee and agent donations to qualifying charities. That’s a boost from the 1-to-1 match in place since the Dreams Foundation was established in 2016.
“In addition to other direct contributions to charities, last year the foundation provided more than $1 million in matching gifts to charities supported by employees and agents, and another $600,000 in matches to the United Way.
“Along with these one-time enhancements, the company is making permanent changes to its benefits program – many of the updates are focused on supporting employee education.
“The company will expand the amount of tuition reimbursement for employees, help employees pay a portion of their student loans and offer scholarship opportunities to any American Family Insurance employee who pursues a two- or four-year post high school degree. The company already offers scholarship opportunities to children of employees, agents and agent staff.
“‘We continue to focus on providing an overall employee and agent experience that encourages people to bring their best every day, and sets American Family apart as we recruit new talent,’ said Jim St. Vincent, American Family Insurance chief human resources officer.
“Also new, the company’s family leave program will now provide American Family employees with paid leave to care for an ill child of any age or for a spouse or domestic partner. This is in addition to family leave to care for aging parents and the birth or adoption of a child.
“In 2017, American Family announced it was raising its minimum hourly pay rate for employees to $15 per hour to create a positive impact on employees and communities where the company does business.
“'These benefits have a positive impact on our people and the communities where we live and work, add to our local economies, and send a message to future talent that we invest in our workforce,’ said Westrate.”