The easy solution to employer-to-employee transactions

Are your employees fully prepared to survive financially if they are out of work for an extended period of time due to sickness or injury?

Based on statistics provided in Parade Magazine, the answer is probably “no.” Currently, two-thirds of American families are living from paycheck to paycheck. And according to Social Security, 70% of the private sector workforce has no long-term disability coverage, leaving them exposed to considerable risk—especially when you consider that three out of 10 workers entering the labor force today will become disabled before retiring.

Here are some startling facts that every HR manager should know!

This is the impact on Employer:

• According to a Watson Wyatt study, disability costs exceeded $340 billion in the year 2000.
• The indirect costs of poor health (absenteeism) can be 2 to 3 times the direct medical costs.
• The average disability absence results in payments of $3,800, while lost productivity costs average over $22,800, states the Integrated Benefits Institute.
• IBN has also found that the "total costs" associated with each disability absence exceeds $35,000.
• And, just 10% of disability cases account for more than half the total medical and disability costs.
• The average duration of a long-term disability is 30 months.
• A study conducted by HIAA found that 86% of employers believe that they need to offer benefits above and beyond health/medical benefits in order to stay competitive.
• A JHA absence study discovered that disabling injuries and illnesses account for 55% of employee absences.
• Employers spend 4.1% of payroll on unscheduled absences, as reported by Marsh/Mercer.
• In the U.S., a disabling injury occurs every 2 seconds, a fatal injury occurs every 5 minutes, according to the National Safety Council.
• AHIP found that over 90% of disabling accidents & illnesses are not work related, and therefore not covered by workers’ compensation.

The major causes of your employees' disabilities may be significantly reduced and even prevented through a company-supported wellness program, according to a leading EAP provider, ComPsych poll:

·        According to a recent study, almost 88 percent of those surveyed were interested in an employer-sponsored wellness program, and 67 percent said they would be likely to use it

·        Incentives increase participation - Earning days off (55 percent), reducing health premiums (53 percent), being challenged to reach a goal or win a contest (51 percent), and receiving gym discounts (49 percent) also would motivate employees.

·        More than 74% said health and lifestyle had a significant impact upon productivity, and lack of energy was reported as the number one hindrance to productivity.

·        Recent studies indicate that over 50% of corporate profits now go for health care costs versus only 7% three decades ago.

·        Wellness programs that target overweight and obesity issues caused a 26% reduction in health care claims, a 27% reduction in sick leave, and a 32% reduction in workers’ compensation costs.

·        Wellness programs have increased 68% between 2003 and 2007.