American Century opens new vistas in work/life
Lifecyle’ account covers lessons, books
Imagine a wellness program that reimburses you for acting lessons, guitar lessons, and other personal development opportunities. Employees at Kansas City, MO-based American Century Investments, a no-load mutual fund company, don’t have to imagine such a benefit; they already have it.
Through the company’s Lifecycle account benefit, employees can be reimbursed up to $150 a year ($200 for those at nonheadquarters facilities) for home fitness equipment, day camp for children, baby-sitting expenses during nonworking hours, or financial planning fees — and much, much more. (For a more complete listing, see the box on p. 66.)
The program is a logical extension of the company’s people-oriented attitude, says Jerry Bartlett, senior vice president and chief people officer at American Century. Even his title, he notes, is "reflective of the people-centric approach we take. We emphasize caring about people — trying to create the right environment in which they can feel productive and fulfilled."
The program was introduced in January 1999, and was developed to meet a need that had been clearly expressed by the employees. "We work hard at trying to listen to the employees and to what they care about," says Bartlett. "Every year we conduct a benefit survey, and people continually told us that work/life balance and flexibility were important to them as individuals. From this input we created the program."
Another driver was the fact that not all employees had the same wellness opportunities. There are around 3,000 American Century employees in all, but only 2,300 in the company headquarters, notes Bartlett. The rest are in Denver, Mountain View, CA, and Greenwich, CT.
"We have two different fitness facilities in headquarters, but not everyone can use them — and there’s certainly no direct access outside of headquarters," notes Bartlett. "So, among other things, we reimburse up to $150 a year for fitness club memberships."
Let employees choose
The diverse options available within the reimbursement program underscore the fact that one size does not fit all, says Bartlett. "We want the employees to choose," he notes. "We send out that same message with all of our benefit programs. Since they are so personal, we try to build the programs around the theme of flexibility and individuality."
Bartlett says he’s never seen anything like the Lifecycle account program at other companies. "We’ve included anything from assistance in tax preparation to someone taking acting lessons," he notes. "Another employee bought a hypoallergenic pillow. In Denver, there are a lot of outdoor types, and some people use the account for lift tickets."
The annual reimbursement can be carried over to the next year. "You can build it up to $600," says Bartlett. "I’m a golfer, and I’m thinking of saving up for a stretching machine. I’m also thinking about a new pair of running shoes." He explains that people outside of Kansas City receive a higher reimbursement level because headquarters employees have access to more on-site facilities.
Purchases are made easy through an arrangement with a local bank. "The employee buys the equipment or service, turns in the receipt to the bank, and gets reimbursed," he explains. "It’s so easy to use, people haven’t had any hassles at all."
The employee response "has been great," Bartlett says. "Last year, we had 1,850 people use their accounts, and we paid out over $210,000. Already this year we’ve had 1,185 people use their accounts, and we’ve already spent over $140,000."
Employee feedback has been very positive, with many expressing their appreciation to the company for providing such a benefit. "I think because some of the ideas for these benefits have come directly from the employees, it is more meaningful for them," says Bartlett. "On a larger scale, it boosts retention and attracting top people, which is ultimately the name of the game. Through its actions, the company demonstrates just how important its people really are."
That fact is not lost on American Century employees. "This was my first job out of college," says investor relations representative Eric Bakken. "It’s really nice to have the kind of benefit that’s self-directed. Also, it’s not a necessity like most benefits are."
Bakken also appreciates the fact that the benefit is still somewhat restricted. "It’s not like a bonus, where you can just go out and blow it," he explains. "It’s supposed to be for yourself — and it should be fun stuff."
This year, Bakken used his account for some books to help him plan his future, "and figure out where I’m going." He also paid for a for home computer upgrade. "I wanted to make sure it was used up, and a lot of fitness things I do don’t require money, so I thought about what my interests were and spent it on things I would not have bought otherwise," he says.
Next year, he says, he might go out and buy a $500 bike and give himself a $200 discount. He says having a benefit like this definitely helps employee morale — as well as recruitment and retention efforts. "I think it helps that the program’s unique," he says. "When I was looking around [for a job], I never heard of anything like this. It’s one of those things that puts an extra little spin on what we have here."
Bartlett says the program will continue to evolve and improve. "We [will] continue to look at all sorts of things and tweak the program as we get input about how we can make it even better," he says. "When we first started, it was probably not as loose as we are today in terms of how broadly the account can be used; we definitely have increased flexibility. For example, we didn’t originally cover acting lessons. But people talked about it, and ultimately concluded that if acting lessons meant better work/life balance for some employees, and that’s their release, then why not?"
As for his own evaluation of the program, Bartlett leaves no doubt about his enthusiasm. "I might be a little optimistic, but I’d say it’s been outrageously successful," he concludes.
[For more information, Contact: Jerry Bartlett, American Century Investments, 4500 Main St., Kansas City, MO 64111-7709. Telephone: (816) 340-4543.]
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