If you are thinking about adding employer-paid identity protection to your benefits package, you may have questions about the value such a benefit brings to both your employees and your business. As a benefits manager, you’re responsible for vetting an array of options to find benefits that provide the perfect mix of utility, necessity, and […]
Why an Employer-Paid Identity Theft Protection Benefit is Good for Business
With millions of Americans falling victim to identity theft each year, it’s not a question of if an employee will suffer identity theft. It’s a question of when, and how disruptive it will be to your operations. You may have already watched an employee suffer from identity theft, and know how long their recovery took—along with the impact it had on your business.
Take for example a high-billing consultant we met at an Austin, Texas-based tech company who performs integration work and typically bills out $1,500 to $2,000 daily on behalf of the company. Thieves stole this employee’s identity and used it to open credit cards in his name in California and buy a house in Florida. The consultant went on to spend four weeks dealing with the theft, which resulted in nearly $40,000 in lost revenue for the company.
For an executive or high-billing employee, lost productivity can add up to thousands of dollars in lost revenue, while the lost productivity from rank-and-file employees can impact your operations, customer service, and product quality. Had the Texas consultant been covered with identity protection benefits, the loss of productivity and revenue would have totaled an hour or two.
That’s where an identity protection benefit provides value. It mitigates the impact of identity theft on your business, whether from lost productivity or lackluster performance.
Here are four reasons why an Identity Protection Benefit is good for business:
- Protect against lost productivity: When an employee needs to resolve identity theft, they can spend dozens of hours spread out over months sending emails, waiting on hold to speak to credit card companies, and battling banks over charges. If you think your employee will be spending the time to resolve their identity theft after work hours, think again. Employees frequently must contact banks, government offices, and other institutions during those organization’s business hours, taking your employee out of action during your regular hours of operation. By offering an identity protection benefit that restores a stolen identity on the employee’s behalf, you can keep that employee focused on their work. Even better, coverage that includes fraud alerts and credit monitoring can prevent ID theft in the first place—saving your business hours in lost productivity.
- Attract and retain top talent: Next to salary, benefits are among the top reasons why employees choose to stay at one employer versus another. An identity protection benefit can give you something to offer your employees that your competitors don’t.
- Mitigate fines and litigation: If an employee’s identity theft takes place due to a workplace data breach, having an identity protection benefit in place can help employees get back on track faster while showing that you made an effort to proactively mitigate any foreseeable damage.
- Bolster financial security: An identity protection benefit shows employees that you take their financial wellness personally. Given the proven impact (including absenteeism, tardiness, performance, to name a few) that financial insecurity has on employees at work, more and more employers are offering benefits like budgeting, retirement planning, and college loan consolidation. But what good is improving your financial wellness if it can all be put at risk by financial fraud? Credit monitoring and fraud alerts ensure your business and your employees’ financial health are protected.
A turnkey solution
Busy human resource managers with a lot on their plate don’t have time to implement a solution that requires heavy lifting. As you evaluate the cost and value of an identity protection benefit for your employees, ease of use is an important consideration. To make it easy for your employees to enroll, integration with your current benefits platform should be seamless.
As a benefits manager, you’re focused on sifting through your many options to find benefits that provide employees with the most value. The right benefits can make your employees’ lives easier, which in turn makes them more productive at work. Plus, it can help your company compete in the never-ending battle to attract, retain, and reward top-notch employees.
Learn more about how identity protection benefits impact businesses and employees. Get your most pressing HR questions about identity protection benefits answered here.