Why Employers Should Consider Providing Employees
With Income Protection Insurance
Recruiting and retaining good talent is increasingly challenging, particularly with expectations of millennial and Gen Y employees so different to their Gen X and Baby Boomer predecessors. With unemployment levels low and greater mobility of younger employees, strategies to attract and keep quality employees are an essential part of success in business.
One way of optimising retention of talented staff is to offer an employee benefits package that exceeds what might be on offer from your competitors. And one of the more appealing benefits could be a tailored group insurance scheme, that demonstrates clearly to your employees that you are interested in their welfare and wellbeing, as well as saving them money.
The general benefits of income protection insurance are well understood. In the event of an incident that results in work incapacity, the insured can receive up to 85% of their pre-incident income for up to five years. It covers accidents & illnesses, whether at work or at home. There is flexibility to apply it to any employee – casual or permanent and even self-employed workers.
For many employees, particularly those in the younger age brackets, the idea of taking out individual income protection insurance is probably quite far from their minds. However, accidents can and do occur, even with healthy young adults. And while compulsory worker’s compensation insurance will cover wages, medical expenses and rehabilitation costs for a work-related disability, it won’t cover accidents that occur outside the workplace.
So why not consider a group insurance policy for your employees, rather than encouraging them to take one out for themselves or risking them having no cover at all?
As noted, one of the key reasons is that it is a highly effective tool for attracting and retaining quality employees. It is also a clear demonstration that you value the health, wellbeing and welfare of your employees. Added to that, if you have an employee that needs to take an extended period off work due to accident or illness, the likelihood of them returning to work with you is much higher if they are covered for life’s essential costs while they are away from the workplace.
When it comes to choosing whether to stay in a role or apply for a new one, 24% of Australians agree that in addition to salary, employee benefits play a significant role. What non-monetary benefits are important to you? #benefits #flexibility https://t.co/F8VvocSMjD— Stopgap Australia (@Stopgap_Aus) August 6, 2019
It is better to have them concentrating on getting well again, rather than adding a financial burden to their recovery process.
A group income protection insurance scheme can offer a more accessible and flexible option with automatic levels of cover. Group insurance is also more cost effective, with lower premiums than individuals can achieve by themselves because of the scale and the dissipation of risk across a larger group.
A tailored group income protection insurance scheme should be considered as a core part of your employee benefits offering. It provides peace of mind for both you as an employer and your staff as valued employees.