It is the responsibility of a business owner to ensure the well-being of their employees and safeguard their business.
Short-term disability insurance can assist in accomplishing both goals. This type of insurance provides financial assistance to employees who are unable to work due to an illness or injury, reducing turnover rates, increasing productivity, and protecting your business from potential financial burdens.
In this blog, we will discuss why short-term disability insurance is a must-have for every business owner.
You care about your employees, and short-term disability insurance is one way to demonstrate that care. This type of insurance offers financial support to employees who are unable to work due to an illness or injury, allowing them to focus on recovery instead of worrying about lost income.
With short-term disability insurance, your employees can rest assured that they have a safety net in case the unexpected happens. This is more relevant in the modern era, where workplace injury and employees with disability are common occurrences.
The U.S. Bureau of Labor Statistics reported that 21.3% of persons with a disability were employed in 2022, which is an increase from 19.1% in 2021. In contrast, 65.4% of persons without a disability were employed in the same year, up from 63.7% in the prior year. These statistics highlight the importance of protecting employees, especially those with disabilities, by offering short-term disability insurance.
With such insurance, you can provide your employees with the financial support they need in case they experience an illness or injury that prevents them from working. This support can help them maintain their quality of life while they recover and can reduce their financial stress during a difficult time.
With such a valuable tool, employees can also experience improved mental health. Suffering from an illness or injury can be challenging, and the added stress of lost income can exacerbate the situation. By providing short-term disability insurance, you can alleviate some of this stress and allow your employees to focus on getting better.
You recognize that a high rate of employee turnover can be financially burdensome and disturb the smooth operation of your business. One way to reduce turnover is by offering short-term disability insurance. When employees have access to this type of insurance, they are more likely to stay with your company if they become sick or injured.
Employees who possess short-term disability insurance tend to feel more valued and supported by their employers. This can result in higher job satisfaction and commitment, ultimately leading to decreased employee turnover rates.
Providing short-term disability insurance can also assist you in preserving a diverse and inclusive work environment. Employees with disabilities may be more likely to stay with your company if you offer this type of insurance, as it can provide them with the support they need to manage their health conditions.
Short-term disability insurance is particularly important in states like New Jersey, where high employee turnover rates have become a major concern for businesses and the government. According to the U.S. Bureau of Labour Statistics, 76,000 employees quit their jobs in January 2023 in the state. However, this number is lower when compared to 102,000 in January 2022 but still significant. The statistics necessitate actions from employers to tackle the issue of employee turnover on an urgent basis.
A feasible approach to minimize employee turnover is to provide NJ short-term disability insurance. In New Jersey, businesses can purchase short-term disability insurance to reap multiple benefits.
By offering short-term disability benefits through insurance agencies like Dickstein Associates Agency, LLC, businesses in New Jersey can provide their employees with weekly benefit payments for six months to one year. As per Dickstein Associates Agency, this type of insurance comes with multiple benefits, including:
- The employee will get weekly benefit payments for 6 months to a year, which is a portion of their salary.
- The program offers a comprehensive rehabilitation program, including incentives such as dependent care, workplace modifications, and more.
- The process for filing claims is straightforward and can be done either by calling or filling out an online form.
Short-term disability insurance is a crucial tool for every business owner to ensure the productivity and well-being of their workforce. By providing this insurance, you show your concern for your employees. This gesture can elevate their morale, and augment their commitment to the organization, resulting in higher productivity.
By providing your employees with short-term disability insurance, you can help them deal with the financial burden of an unexpected injury or illness. Without this coverage, your employees might have to rely on their savings, personal loans, or credit cards to pay for medical bills, rent, or other expenses.
The stress of financial instability can cause employees to become distracted, miss work, or resign, which can severely impact your business. Short-term disability insurance can also help you attract and retain top talent. When you offer comprehensive benefits, including disability insurance, you create a competitive advantage that sets you apart from other employers.
Being a business owner, you send a message to potential hires that you value their health and well-being and that you are willing to invest in their future. This can make your job offers more appealing and help you retain your best employees for longer.
Employee well-being is crucial for every business owner to maintain a productive workforce. According to a 2022 report, roughly 76% of companies are increasingly recognizing the importance of investing in resources to support their employees’ stress management and resilience. By giving importance to the welfare of employees, companies can build a healthier and more productive work atmosphere, which can favorably influence financial growth.
Short-term disability insurance is a key part of an employer’s benefits package that can support employee well-being. By offering this type of insurance, employers provide employees with financial security in the event of an injury or illness, reducing stress and anxiety related to potential financial hardship.
One of the biggest benefits of short-term disability insurance is that it protects your business from financial losses if an employee becomes unable to work due to injury or illness.
Without this type of insurance, your business could be responsible for covering the costs of the employee’s absence, including lost wages and medical expenses. This can be a significant financial burden for small businesses, making short-term disability insurance a must-have for every business owner.
According to the Council for Disability Awareness, a considerable number of employed individuals encounter temporary disabilities annually, whether due to sickness, injury, or pregnancy. In fact, a short-term disability lasting six months or less is expected to impact approximately 5% of working Americans. The vast majority of these disabilities are non-occupational in origin, meaning they are not related to work.
This number highlights the importance of short-term disability insurance for every business owner. By offering short-term disability insurance, you can provide your employees with the necessary financial support they need during a time of illness or injury while also protecting your business from potential financial losses.
Short-term disability insurance can also safeguard your business from possible legal ramifications. If an employee becomes unable to work due to an injury or illness and your business is not able to provide them with the necessary support, they may take legal action. By having short-term disability insurance in place, you can provide your employees with the necessary support, reducing the risk of legal issues.
Short-term disability insurance can also safeguard the reputation of your business. If an employee becomes unable to work due to an injury or illness and your business is not able to provide them with the necessary support, it could lead to negative publicity and damage to your reputation.
Short-term disability insurance is a critical investment for business owners. It provides financial security for employees who may become temporarily disabled due to illness or injury, and it can also help protect the business by reducing the financial burden of paying for employee absences.
By offering this type of insurance, business owners can demonstrate their commitment to their employees’ well-being and ensure that their business continues to run smoothly in the event of an unexpected absence.