What is Employee Tethering?


The only thing more expensive than hiring a new employee is losing your top talent. High employee turnover rates can lower your overall workforce satisfaction, erode your growth, and impact your bottom line. But it doesn’t have to be that way! With the GOALL Agency, we can show you how to tether your employees, improve employee retention, and increase profit margins.


What is the tethering program? Well, most people years ago called it the golden handcuffs. The new verbiage in today’s market is we call it tethering. This is where you do not want to lose your key employees. 

How does it work? Works like this. The employer is going to pay for a policy that provides a retirement package, living benefits, and death benefits for this key employee. They are also going to give them a loyalty match so they stay loyal they can have a personal policy because the regular policy is owned by the business owner. 

A typical length of time that a business owner pays for a tethered program is between five and ten years and then they turn it over to the employee is not covered if they have an untimely death they get out they get a personal policy with a loyalty match so when they retire they have dual coverage death benefit living benefits and retirement.