CHATTANOOGA, Tenn.—Unum Group will contribute $700 to each 529 college savings plan established by its employees for any child born or adopted in 2008 and beyond, the company has announced.

The contribution, which benefit consultants say is rare for employers to make, is part of the company’s endeavor to retain and attract employees in today’s labor market, Unum said in a statement.

“In this tight labor market, employers of all sizes are looking at unique benefits we can provide to attract and retain a quality work force,” said Eileen Farrar, senior vp of corporate resources at Chattanooga, Tenn.-based Unum, in a press release.

“Niche benefits, such as this 529 contribution, highlight the importance of addressing the needs of our diverse working population, in this case, working parents who will face extensive higher education costs for their children,” Ms. Farrar said.

The program also underscores Unum’s commitment to improving education opportunities for children, said Joe Foley, senior vp and chief marketing officer at Unum.