In today's dynamic job market, attracting and retaining top talent requires more than just offering competitive salaries. Employees are increasingly looking for comprehensive benefits packages that provide financial security and peace of mind — and an attractive benefit to invest in is Income Protection. Offering employees a safety net in case of unexpected events such as illness or injury is a vital offering for any workplace — even one of low physical risk. However, choosing the right level of Income Protection can be a difficult feat when balancing cost considerations with the need to provide adequate coverage. But before we look at strategies for finding the right type of Income Protection for your team, let’s dive into the specifics of what exactly Income Protection is. Why Income Protection is importantIncome Protection (also known as Disability Insurance, Group Permanent Health Insurance, Group Income Replacement, or Long-Term Disability Cover) replaces a portion of an employee's income if they cannot work due to an illness or injury. This benefit is in place so that employees can still get financial support and earn a living even if they face a sudden unexpected period of inability to attend work — and it can go towards essential expenses such as mortgage or rent payments, utility bills, and groceries.But most importantly, and most beneficial to the employer: it offers a sense of peace of mind for employees. Income Protection is a way for employees to maintain their lifestyle and protect themselves financially— and especially in this economy, it’s priceless to have that kind of peace of mind. Stress and anxiety can often halt recovery and encourage people to return to work too soon. Income Protection allows them to know they have support and they can focus on their recovery. The benefits for employees include:Directly benefiting from a payoutHaving peace of mindGenerally no set list of conditions coveredIn some cases, Income Protection payments could last until retirementThe financial benefit is spread out over timeFrom an employer's perspective, offering Income Protection can enhance employee morale and loyalty. It demonstrates a commitment to employee wellness and can be a valuable asset in attracting and retaining top talent, reducing absenteeism and overall reducing costs. The benefits include for the employer include:Value-added services can speed up the employee’s recovery and return to workValue-added services could lower the risk of long-term absenteeism for physical and mental conditionsValue-added services could reduce the risk of business interruptionCan increase employee productivityConveniently administered through payrollWhat to consider when choosing Income Protection levels When selecting the right level of Income Protection for your employees, several factors come into play. While it’s always important to speak to a broker or a professional, here are some of the main considerations to keep in mind:1. Roles and risks: Certain industries or roles in a workplace may have a higher risk of injury or illness than others. For example, employees in physically demanding professions (like construction, the trades or medical facilities) may require more robust Income Protection coverage compared to those in sedentary office jobs. The same goes for emotionally and mentally straining issues that can lead to ailments if not addressed. 2. Employee demographicsConsider the age, health status, and lifestyle of your workforce before considering what type of Income Protection to invest in. Younger employees may see Income Protection as an attractive benefit, while other demographics may not That’s where it’s helpful to get input from your employees and do your market research. 3. Employee inputSimply surveys or feedback sessions with employees can give you an idea of how much your team values Income Protection, their preferences and how much you should invest in it as a benefit. 4. Budget constraintsBudgetary constraints are a vital consideration — especially when adding Income Protection as part of your holistic suite of benefits. Determine how much your organisation can afford to spend on Income Protection specifically, while still being able to offer an acceptable and beneficial amount of cover. Strategies for finding the right Income Protection packageKnowing your worst-case scenario and how much budget you have for unexpected accidents versus premiums on Income Protection can help you identify where the real need is, and where (and how) your money is best spent. Here are some key strategies that can help you identify what kind of Income Protection package would be most beneficial for you: 1. Consult with expertsGIP is a complicated product. So don’t take all of this into your own hands — especially if your team is new or less knowledgeable about insurance products. Reach out to an experienced benefits consultant or insurance broker who specialises in Income Protection and disability insurance. They can help you find the best solution for your specific organisation’s needs. 2. Determine your variablesAsk yourself: "How long would you want an employee to be covered for if they are sick?" and "How much of their salary would you like them to be covered for?" These variables will determine the cover and premiums you will receive from an insurer. That’s why it’s important to first decide if you want to cover for a medium-term illness that would retain the employee on the payroll for 2-5 years, to return to work if possible — or a cover to cease age, meaning that if an employee is diagnosed with a long term condition or suffers life-altering damages that they would be covered until their retirement age. Considerations for your level of cover would be that a greater level of cover allows the employee to maintain their lifestyle more true to their full-time wages. However, a lower percentage of salary tends to have employees return to work sooner. 3. Champion wellnessAlongside Income Protection packages, many providers will allow employee wellbeing initiatives, lifestyle resources and disability risk reduction programmes to help reduce the need for Income Protection to be used. We offer an extensive EAP programme as part of getting a Group Insurance plan automatically. But even if your provider doesn’t, consider instilling some of these to further combat the need for Income Protection and even reduce overall insurance costs and premiums. And then, as you go, you can re-evaluate as an organisation and adjust costs as necessary. 4. Evaluate regularlyReview, review, review! Ensure that over time, your Income Protection benefits are still aligned with the needs, size and demographic of your team. Do assessments, feedback sessions with employees, surveys, and host annual discussions with your provider and other industry experts to make sure you’re getting the most up-to-date offering and the most for your money as the insurance industry evolves. But most importantly, remember to take a holistic approach to your benefits package. That will help you choose the right level of Income Protection for your team. Income Protection should be complementary to the rest of your benefits package and offering, not overtake them. It’s a simple safety net for one of the possible issues your business or employees could run intoWhile it’s still a vital component of a well-rounded benefits offering, think of taking a wider view of the business as a whole before you make your final decision.About YuLifeYuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work?Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.