Small employers that offer long-term disability (LTD) benefits believe such benefits serve the interests of both their company and their employees, according to a 2015 survey of more than 500 benefits decision-makers at companies with 10 to 99 employees. While those that don’t provide this benefit often overestimate its cost—and underestimate its appeal.
The survey was conducted in April 2015 on behalf of the Consumer Federation of America (CFA), a trade group, and benefits provider Unum. Among the findings, a large percent of small employers indicated that most of their employees would face significant financial hardship if they were disabled and unable to work:
- More than half (55 percent) said they offer LTD coverage in order to reduce company costs if an employee goes out on disability.
- Half said that offering LTD benefits improves productivity and “gets employees back to work faster.”