Financial and Legal Wellness Bolsters Employee Productivity & Loyalty
Feb 1, 2012
For employees, the state of the economy and the state of their "financial and legal wellness" are interdependent. The need for legal services is greater than many people assume, and a number of economic factors are contributing to an increase in the demand for legal assistance. Employers are stepping up to the plate to help employees by offering voluntary benefits that address financial and legal health. Recent studies show that financial and legal services increase employee productivity and feelings of loyalty for their employer, while reducing stress and improving their financial well-being.
The Need for Affordable Legal Services is Rising
The financial challenges faced by many Americans have led to an increase in the number of foreclosures, refinancing and bankruptcy filings. These financial issues can translate into legal matters and the need for affordable attorney assistance. Data from Hyatt Legal Plans show a recent surge in the need for such services among employees. From 2005 to 2010, overall legal plan usage in the category of debt and financial matters increased 83 percent. Specifically, legal plan usage for bankruptcy increased 77 percent, and usage for debt collection defense, refinancing and home equity loans both doubled during this time. Making a group legal plan available to employees provides them affordable access to a prequalified attorney to help them address legal issues associated with debt and finances.
Legal Plans Can Increase Employee Productivity and Loyalty
Stress caused by legal issues can affect productivity by contributing to absenteeism and presenteeism. According to a Harris Interactive study, employees who did not hire an attorney to help with their legal situation were nearly three times as likely to spend five to 10 hours at work dealing with their legal issue than those who hired an attorney through a workplace legal plan. Furthermore, 50 percent of those who did not hire an attorney took time off work to deal with their legal issue, compared to only 30 percent of those who hired an attorney through work.
A legal plan benefit can work to an employer’s advantage as well. Employees who participated in an online discussion as part of the Harris Interactive study, and used an attorney through work, reported an improved perception of their employer. According to MetLife’s 9th Annual Study of Employee Benefits Trends, employees who participate in wellness programs are more likely to report loyalty to their employer and perceive that their employer is more loyal to them. In addition, they are more likely to say that benefits are a reason they remain with their employer.
With tough economic times and ever-increasing healthcare costs, employers need to be strategic in maximizing the value of their benefits program while minimizing additional costs to retain talent. Voluntary benefits, such as a group legal plan, alleviate the workplace impact of employees’ personal legal matters, help them improve their financial well-being and incent them to see their employers in a more positive light.
1-Hyatt Legal Plans Actuarial Data, 2011.
2- Harris Interactive research conducted in 2011 on behalf of Hyatt Legal Plans, “The Impact of Legal Matters on Today’s Workforce.”
3- Ibid.
4- MetLife 9th Annual Study of Employee Benefits Trends: A Blueprint for the New Benefits Economy, 2011.
About the Author
Bill Brooks is CEO of Hyatt Legal Plans, a MetLife company. Hyatt Legal Plans is the largest provider of group legal plans in the country, serving 145 Fortune 500® organizations. For more information, please visit www.legalplans.com or call 800-423-0300.
