Table of Contents
Do not index
Do not index
By providing benefits, organizations protect their employees and bolster their recruitment and retention strategies.
Disability insurance is the benefit most valued by healthcare companies.
Given the importance their team members attach to income protection, we are always surprised by how little C-Suite and HR & Benefits teams truly know about disability insurance.
We can hardly blame them - for too long they have been underserved by benefits experts who don’t know enough.
Understanding Disability Insurance
There are two main categories: long-term and short-term. Short-term disability insurance offers a portion of an employee's salary if they're unable to work for a short period, usually three to six months. Long-term disability insurance, on the other hand, provides a portion of an employee's salary if they're unable to work for a more extended period, usually over six months.
Why Employees Need Disability Insurance
Disability insurance is crucial as it offers employees financial security in case of an unexpected event. Statistics show that one in four working Americans will experience a disabling event, emphasizing the need for such coverage. Disability insurance grants peace of mind, knowing they will still have a source of income to help pay for bills while they focus on recovery.
The Connection
Offering disability insurance can serve as a significant recruitment tool in a competitive market. It also helps in retaining talent, as it shows the company's commitment to employee welfare.
Boosting Recruitment Efforts
In a labor market where talent is king, having a unique selling point can give a company the edge. Providing disability insurance, especially as a complimentary or discounted benefit, can make a company more attractive to potential candidates.
Enhancing Employee Retention
Disability insurance can also serve as an effective retention strategy. Employees feel valued when their employers offer benefits that provide financial security. A comprehensive benefits package, including disability insurance, can help in retaining talent and reducing turnover.
Disability Insurance and Workplace Productivity
Disability insurance also impacts workplace productivity. By providing a financial safety net, disability insurance can help reduce presenteeism, a situation where employees come to work despite illness, injury, or mental health conditions, which can lead to productivity loss.
When planning to offer disability insurance, companies should consider the following factors:
Enrollment Strategies
Employers should work with a provider that offers a strong educational approach and a customized digital experience. This will help employees understand the value of the insurance and make informed decisions.
Flexible Options
Look for a carrier that provides flexible strategies that adapt to enrollment activity. Some providers offer coverage that grows with the employee's income during the annual review process.
Funding Options
Consider multiple funding options to meet your objectives. These could include voluntary, employer-paid, and cost-sharing options.
The Bottom Line
Providing disability insurance is a win-win for employers and employees. It offers protection for employees while also boosting recruitment and retention efforts. With a comprehensive benefits package, including disability insurance, companies can attract and retain top talent while also ensuring their employees' financial security.
Written by
Georgetown. Former Wall Street. Now disability insurance expert for Physicians.
