The Role of Employers in Disability Income Planning

Competitive benefits, including quality disability insurance, are crucial for attracting and retaining top talent in a tight job market. Disability insurance products are good for organizations, and good for employees. From designing benefits packages to helping employees understand those packages, employers are a primary resource for workers learning about disability income protection planning. They are in a unique position to educate their employees, from open enrollment season through return-to-work plans following a disability.

For Human Resources

Communicating benefits options, especially disability insurance, can be complex. When employees have clear information about income protection coverage, eligibility, and benefits, as well as the real risk of disability, employees better understand and value their options. This is particularly true if the employee partially pays for the benefits or voluntary payroll-deduction products paid for by the employee.

• The average annual turnover rate in the US is nearly 50%¹, and the costs to an employer can be quite high. Competitive benefits, including quality disability insurance, are crucial for attracting and retaining top talent in a tight job market.
• Research indicates that nearly 70% of small businesses consider their benefits package essential for talent management and retention.
• Effective workplace benefits may include wellness programs, integrated insurance offerings, personalized benefits, and data-driven decision-making.
• Income protection through disability insurance is vital for financial well-being, yet many small firms lack adequate coverage. Even where the employer is not able or willing to provide group short and/or long-term disability plans, voluntary or worksite disability produce might be an option for the employer to help employees protect themselves from the loss of income due to injury or illness.
• Group Long-Term Disability (LTD) policies can significantly enhance recruitment and retention, typically cover 60% of income following an elimination period, and incentivize employees to stay.
• Comprehensive disability insurance demonstrates employer investment in employee well-being, improving job attractiveness and reducing turnover costs.
• Collaborating with a benefits broker can help employers optimize their protection plans, advise employers on changes in the marketplace, and help close any employee coverage gaps.