Expert insights may give you new reasons to consider adding some powerful benefits to your employee offerings.
The difference is striking. In a survey from the Bureau of Labor and Statistics released last year, only about 25 percent to 50 percent of surveyed employees have access to disability benefits. And yet over 94 percent of those workers enroll in those benefits plans when offered. While more of those employees had access to life insurance, the participation rate was also substantively higher — more than 96 percent. It’s hard to find other benefits that employees enroll in so readily.
What the data ultimately show is that employers often miss the opportunity to offer their employees the sought-after protection and security these programs offer.
Employers should also consider the potential impact these programs could have on employees doing their best work. According to the Consumer Financial Protection Bureau, “financial stress often carries into the workplace” and can add to challenges for employees. Financial Protection Programs may help remove some of the stress that employees face.
Beyond doing what’s right for their employees, employers should balance the cost for these important financial protection benefits with the value to the employer, employee, and the entire organization. Here is how the costs for Financial Protection Programs from the Board of Pensions stack up:
|Employer pays the full cost||The employer may pay none, some, or all the cost||Either the employer or employee pays all the cost|
|Death and disability is 1 percent of effective salary if offered with Defined Benefit Pension Plan enrollment, or 2.5 percent of effective salary if offered without the Pension Plan||Supplemental death benefits for employees, their spouse, and/or children||The Temporary Disability Plan costs $0.45 per $10 of weekly salary.|
|Term life coverage is $0.20 per month per employee for each $1,000 of coverage||Supplemental disability benefits costs are based on income covered and age|||
|Long-Term Disability Plan, costs $0.35 per $100 of monthly salary|||||
As you review your Employer Agreement this year, consider whether offering or adding a Financial Protection Program may be a benefit to your employees — and possibly your entire organization.