Why companies should consider investing their tax savings in an employer-paid legal plan

Thanks to the corporate tax rate decrease from 35 percent to 21 percent, many employers are looking at how they can re-invest the savings back in their company and employees. Some companies gave their employees one-time bonuses, while others have announced efforts to increase minimum-wage.

Another option gaining in popularity with employers is using the money to enhance their benefits package. Providing more benefits that will improve employee engagement and productivity is an investment that can come back to the company tenfold.

For example, in the last few months, ARAG has received requests from employers interested in implementing an employer-paid legal insurance plan with their “extra” money. Some of these employers already offer a legal plan as a voluntary, employee-paid benefit and know that it increases employee productivity by decreasing employee stress connected to paying for and dealing with legal issues.

Related: 3 ways to reduce presenteeism and improve productivity

When employers offer a benefit like this, they are providing employees a suite of services to help them navigate the complexities of life’s legal matters. Imagine having easy access to a network of attorneys, legal resources, DIY documents, identity theft services, financial counseling, tax help and caregiving support — this can add up to thousands of dollars in savings per employee. All at a minimal cost to the employer.

Beyond the services an enhanced benefit program provides and showing employees they are a top priority, why would your clients be interested in investing in an employer-paid legal plan? Companies that offer a legal plan experience the benefits of:

• Recruiting and retaining talent. An Aflac survey found that employees who were offered voluntary benefits were 19 percent more likely to be satisfied with their job. In our on-demand world, people expect more options when it comes to benefits so they can create a package that feels personalized.
• Improving employee work-life balance by decreasing stress. When businesses were asked to identify the biggest risk to their employees’ well-being, 78 percent said stress (more than obesity or alcohol/tobacco use). ARAG surveys show that 90 percent of plan members feel legal insurance greatly reduces stress.
• Increasing employee productivity. Nearly half of employees say that stress causes performance issues at work. Helping eliminate legal and financial stress means your employees are healthier, happier and more engaged – in their personal and professional lives.

Reducing employee absenteeism. Dealing with legal issues causes 68 percent of employees to miss work. Legal plans connect employees with professionals to handle these matters, minimizing the time employees have to spend on things themselves. If you have clients looking to enhance their offerings this year because of the tax cuts, propose to them a benefit that’s not just an investment in their employees’ overall well-being, engagement and productivity but also an investment in a brighter future for their company.

Dennis Healy is a member of the ARAG® executive team. Dennis is a passionate advocate for legal insurance because he has seen firsthand how it helps people receive the protection and legal help they need. He has more than 25 years of insurance industry experience, with a primary focus on the sale of group voluntary benefit products to employer groups of all sizes through brokers, consultants and employee benefit exchanges.