Employees’ Personal Legal Concerns Cost Employers Big Money

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FRESNO, CA/WASHINGTON, June 9, 2012 – Employee legal issues are a hidden cost and they may be costing you a fortune. If your employees are struggling with legal problems, they can easily become your headache too.

CCH, a leading provider of human resources and employment law information, reported an estimated 67 percent of unscheduled absences are for reasons other than illness. No-shows cost money. Yet many employers still do not analyze the benefits of an employee legal plan, which can save the company thousands of dollars.

Read entire Washington Times Article

For more information on adding an employee legal plan to your benefits package, call 512.704.8592 or inquire at info@freestylebizsolutions.com.

Life Happens: Empower Your Employees with an Employee Legal Plan

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Let’s face it. Life happens. And it usually happens at the most inconvenient time possible, pulling our time, focus, energy and attention away from being productive and lands these resources squarely on putting out the latest fire.

As a small business owner, you probably know all too well the impact that your business can face when just one person is dealing with a personal matter. When you envision your employees being pulled away from work to deal with a personal or family issue, what picture comes to mind? Do you see a medical situation – surgery, illness, injury or a sick family member?

Would you be surprised to learn that almost half of the employees who take time off from work do so to deal with problems that are either legal or legal-related? (LSK Associates Study)

Would it also surprise you to learn that the average person is more likely to find himself in court than in the hospital? Even with this eye-opening fact, most people have health insurance, but no plan for legal problems. (Hospital Statistics: Emerging Trends & Examining the Work of State Courts)

An employee legal service plan offers preventive legal care for your employees and their families to help ensure that minor and everyday legal situations do not escalate into serious legal problems.        An employee facing a legal situation is likely to be distracted, absent, emotionally affected, and non-productive.

Your employees’ personal problems can have a significant impact in your bottom line. Studies show that an employee with legal problems usually:

  • ·         Is absent five times more than average
  •           Uses his/her medical benefits four times more than average
  • ·         Uses sick leave twice as often as the average employee
  • ·         Experiences a substantial reduction in his/her productivity (LSK Associates Study)

As an employee benefit, a Pre-Paid Legal Services Life Events Family Legal Plan:

  • ·         Is available to all your employees and their families
  • ·         Enhances your overall benefits package
  • ·         Is payroll-deducted as a voluntary benefit
  • ·         Costs your employees less than it would if they were to purchase it on their own

According to a 2010 Univers study, 28% of employees in the companies surveyed had an employee legal plan – higher than the 19% who reported having homeowners and auto insurance at work. Further, 87% of employees who have a group legal plan tend to use it more than once and are 2.5 times more inclined to consult an attorney than those who found an attorney outside of work.

 “One out of every two Americans will need the advice of an attorney in the next twelve months.

Of these, nearly half will attempt to deal with the matter on their own.” 

(Legal Needs and Civil Justice: A Survey of America)

 Pull your employees out of this statistic and set them apart as those who have access to legal services when they need them.

To learn more about how an employee legal service plan can benefit you, your business and your employees, contact me at 512.704.8592 or rw@freestylebizsolutions.com.

Download PDF Fact Sheet

Benefits That Make Sense

Attracting and retaining quality employees is one of the greatest challenges every business faces. The people part of your business is arguably one of its most crucial aspects. For the small business, being able to provide an attractive benefit package can be even more daunting simply because of the cost involved.

There are ways, however, to provide your employees with valuable benefits that cost you little or nothing. One of those ways is offering voluntary benefits.

What Are Voluntary Benefits?
Voluntary benefits are insurance plans and other benefits that an employee can voluntary choose to accept. Some of the most common types of voluntary benefits are disability plans, dental, vision, cancer, critical illness, accident and supplemental life insurance plans. In recent years, non-medical plans have gained popularity and can range from pet insurance to automotive or home insurance coverage to legal service plans and ID theft protection plans.

What Are The Advantages of Voluntary Benefits?
The advantages of voluntary benefits are thought-provoking.

To the Employee

  • ·         Most voluntary benefits are available at a lower cost than your employee would pay to obtain the coverage on their own.
  • ·         Premiums are payroll deducted, and some voluntary benefits qualify as pre-tax deductions, resulting in a lower taxable income.
  • ·         As a group benefit, individual medical criteria that could disqualify employees or their family members from traditional medical plans or life insurance are often    waived or less restrictive during their initial enrollment period.
  • ·         Voluntary benefits are typically portable, meaning that when the employee no longer works for you, they can continue their coverage by converting the plan to self-pay.

To the Employer

  • ·         Because the plans are voluntary, you as the employer are not responsible for the cost of premiums.
  • ·         Voluntary benefits are a great way to add bulk to your benefits package without adding cost.
  • ·         Your employees see that you understand that benefits are important to them.
  • ·         Many voluntary plans require only minimal participation, meaning that even very small businesses are eligible and can offer them.

What Are The Disadvantages of Voluntary Benefits?
There really aren’t any. As with any benefit plan, you want to do your homework and shop around for the plans that are the best fit for your business.

Where Do I Start?
One great place to start is with an independent insurance agent or broker. They will be able to help you identify what plans provide the best fit for your business and can shop a variety of companies for you. An online search will also produce such information-rich resources as Voluntary.com and specific voluntary benefits pages on a variety of insurance company websites.