In an unpredictable world, employee benefits provide greater comfort and certainty

In an unpredictable world, employee benefits provide greater comfort and certainty

Work Wisdom

In an unpredictable world, employee benefits provide greater comfort and certainty

Last year, more than 47 million Americans voluntarily turned in their resignations – The Great Resignation – a record-breaking mass exodus from the workforce. The COVID-19 pandemic set off a wave of dissatisfied employees quitting their jobs for a variety of reasons, including dissatisfaction with employee-benefits packages.

A study by Greenwald Research found more than 4 in 10 employees who changed employment in 2021, or plan to this year, cited being unhappy with their employee benefits – despite companies looking for new and innovative ways to attract and retain talent.

As a result, the pandemic and the associated Great Resignation have challenged businesses of all sizes to take a fresh look at their approach to employee benefits. According to Unum research, more than half of workers say they are more likely to stay with their employer because of the benefits they provide. Offerings such as accident, hospital and disability insurance aren’t just specialty perks anymore – they are must-have resources for most employees. The pandemic reinforced that income protection is a necessity for the millions of working Americans who lack the financial resources to miss work due to an unexpected illness or injury.

Protecting Your Finances

Depending on the plan, disability insurance can replace up to 60% of a worker’s salary if they are sick or hurt and can’t work. Long Term Disability (LTD) coverage offered by an employer provides a solid foundation for income protection, but it may not be enough. Here’s why:

  • LTD coverage terms selected by the employer may not include bonuses, commissions, or incentive compensation as part of earnings
  • If employer pays for the LTD coverage, benefits are taxable, which can reduce the net benefit the employee can receive
  • If the employee is a high-income earner, their LTD policy may be underinsuring them

Individual Disability Insurance offers more protection and replaces a higher percentage of a worker’s income, can cover commissions and bonuses, and a worker can keep the policy if they change jobs. Benefits are not offset by Workers’ Compensation and Social Security Disability Insurance payments.

Unum, a leading provider of workplace benefits and services, offers Individual Disability Insurance (IDI) that can help supplement LTD coverage. Quite simply, it’s an extension of long-term disability that can help protect your lifestyle if you’re out of work due to a covered illness or injury. IDI helps you get closer to your former take-home pay and is great for those who need more than 60% of their typical income in the event of disability.

Employees never expect to be in a position where they can’t work. Disability insurance can pay benefits to help them keep the bills covered, so they can focus on getting well and returning to work. A full range of disability benefits will help employers retain and attract top talent and build a happier, more productive, and more dedicated workforce.  

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