Employers in Canada should offer disability leave as a means of supporting employee well-being,enhancing workplace morale, and promoting a positive work environment. While not always legally mandated, providing disability leave and benefits like short-term disability (STD) or long-term disability (LTD) can significantly improve employee satisfaction, mitigate potential chronic issues, reduceturnover, and foster a more inclusive and productive workplace.
Here are some key considerations as to why employers should consider offering disability leave coverage:
Attracting & Retaining Talent:
Offering competitive benefits packages, including disability leave, can make a company more attractive to potential employees.
Increases Loyalty:
Employees that are unable to work may face challenges that affect their financial, physical and mental health. long-term disability insurance helps support employees—even whenthey can’t help the employer—and engenders strong loyalty, which, in this market of job hopping and resignations, is priceless.
Employee Well-being & Morale:
Disability leave provides employees with the time and financial support needed to recover from illness or injury, reducing stress and promoting a healthier return to work. This can significantly boost employee morale and loyalty.
Reduced Turnover & Enhanced Retention:
When employees feel supported during challenging times, they are more likely to remain with the company long-term. This reduces recruitment and training costs associated with high turnover.
Improved Productivity:
A supportive environment where employees feel valued and cared for can lead to increased engagement and productivity.
Helps Cope with Chronic Absenteeism:
Employees with chronic absenteeism or presenteeism can hurt efficiency. Disability benefits allow employees to get help and have financial peace of mind while focusing on their recovery, while employers can fill the position in their absence to ensure workflow and client commitments remain uninterrupted.
Early Interventionand Prevention:
Some disability plans offer resources and support to help employees manage their health and prevent disability-related absences altogether.
Provides FinancialSecurity & Helps Employees Protect Their Savings:
Long-term disability is a major benefit that promotes financial wellness and supports employees on disability, so they don’t need to go into debt, tap into savings or liquidate retirement accounts to pay the bills.
Building a Positive Employer Brand:
Companies that prioritize employee well-being and offer robust disability benefits often develop a stronger employer brand, which can attract top talent and enhance their reputation within the industry.
Highlights Other Benefits:
When offered as part of a comprehensive program to promote health and well-being, disability coverage encourages employees to seek help. Some employees will use an employee assistance program (EAP) to support their mental well-being, while others can access preventive care services to support their physical needs.
Addressing Mental Health:
Disability leave can beparticularly important for addressing mental health challenges, providingemployees with the time and resources they need to manage their conditions andreturn to work.
Advantage to Employer– EI Premium Reduction:
If all of the abovereasons were not already good enough reasons, then employers should consider that under Canada’s Employment Insurance Act and the EI Regulations, an employer's EI premiums may be reduced when employees are covered by a qualified short-term disability plan that reduces the EI benefits that would be payable if such a plan didn't exist.
Compliance & Legal Considerations
While not all disability leave is mandated, some provinces have specific regulations regarding sick leave and other types of leaves. Employers should familiarize themselves with these requirements to avoid legal issues.
What's next?
Your business can save money in the long run and become more profitable by offering employee benefits.
Check out Beneplan solutions for your employees.
Contact an advisor to learn more about how we can help you get started on a comprehensive benefits plan for your employees.
