Long-Term Disability Coverage Doesn’t Adequately Protect High Wage Earners
Attraction and retention is a primary focus for human resources managers and talent recruitment teams today. In a job market that is dealing with high levels of unemployment, and an impending war for talent, it’s imperative that organizations evaluate their current benefits package to attract and retain top-tier talent – particularly among their executive team.
Long-term disability is one benefit that could use some extra scrutiny. Many organizations offer group long-term disability coverage, but few realize that this benefit just isn’t enough to protect high wage earners. That oversight creates a major gap in your talent attraction and retention strategy.
Group long-term disability coverage usually covers 60% of income with a cap of $5,000 per month or $60,000 per year max. Your executive team likely earns more than that amount each year. The gap between that $60,000 and a high wage earner’s income can create unneeded stress and vulnerability for critical team members.
Attracting and retaining executive talent is about more than financial compensation. HR teams and employee benefit managers need to re-evaluate each aspect of their benefits package to keep up with current trends and ensure that executive candidates feel taken care of by their company.
There are options available on the market for employer-sponsored solutions that include discounted premiums and no medical underwriting requirements – advantages that individuals cannot achieve on their own.
If your organization is interested in learning more about supplemental benefits that employers can offer to increase talent attraction and retention among executives, contact Chris Henderson, Managing Director of M3 Financial.
Investment advisory services offered through M3 Financial, a registered investment advisor and separate entity from M3 Insurance.