spent almost $7 billion for LTD coverage in 2015, which is the
third largest cost to a group benefits plan (after health and dental).
By using this predictive insight and understanding the correlation
between GDP and LTD claims, businesses can better anticipate
and manage costs related to claims; prevent some from happening
altogether; or even reduce their duration. This can be achieved
through proactive measures such as implementing or increasing
focus on employee assistance programs (EAPs) and putting in
place contingency plans to support employees when they need it
the most to get back on their feet quickly after an illness.
Some tips to help the business and employees:
■■ Create additional focus on EAPs to assist employees as GDP rises
■■ Business leaders, HR departments and managers can be more
attentive to employees during economic downturns to ensure
they are aware of the resources available to help them cope
with stress and uncertainty
■■ Proactively create plans to ensure adequate staffing levels
during times of positive economic growth to reduce the impact
of an employee’s absence on the business, including a buffer for
potential claims
■■ Review group benefit plans annually to ensure you have the
right one in place for your specific business needs
■■ Look for plans that have flexible options such as allowing
employees to return to work on a part-time basis while still
receiving benefits
■■ Ensure employees understand the coverage in their plan and
make use of any return-to-work benefits, such as financial
planning, rehabilitation and other services to help make a
smooth transition back into the workplace
As Benjamin Franklin once said, “An ounce of prevention is
worth a pound of cure.” If employers can predict the incidence
of LTD claims, they can also plan to mitigate those risks and
help keep their operations running smoothly during critical periods.
Coupling the right information on a timely basis with a
proactive approach to supporting staff will ultimately result in
productivity gains through a healthier, happier and more engaged
workforce. n
John Carinci is vice president, Group and Business Markets at RBC
Insurance.
policies & procedures
WHEN EMPLOYEES ARE WORRIED
ABOUT JOB SECURITY AND
PERFORMANCE DURING CHALLENGING
OR UNCERTAIN ECONOMIC TIMES,
IT CREATES SIGNIFICANT MENTAL
AND/OR PHYSIOLOGICAL STRESS.
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24 ❚ MARCH 2017 ❚ HR PROFESSIONAL
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