For nonprofit organizations competing for talent while managing limited resources, employee benefits can be an important part of an overall compensation package. Disability coverage can help provide employees with income if an illness or injury prevents them from working. Offering this coverage can be a meaningful benefit for many of your employees.
Short-term vs. long-term disability coverage
Short-term disability insurance generally replaces a portion of an employee’s income for a limited period, often lasting several weeks or months. Long-term disability coverage is designed for more serious conditions that keep an employee out of work for an extended period.
Depending on the plan, employers may pay some or all of the premium, share the cost with employees, or offer coverage as a voluntary benefit. However, you should note that waiting periods, benefit amounts, and eligibility requirements can vary by policy.
How disability coverage fits with leave benefits
Disability insurance provides income replacement, but it does not necessarily provide job protection. Eligible employees may also qualify for job-protected leave under the Family and Medical Leave Act (FMLA), and state or local laws may provide additional benefits or protections.
Because these programs can overlap, you should understand how your organization’s disability coverage coordinates with paid leave, FMLA, workers’ compensation, and any applicable state requirements.
Consider disability coverage as part of your benefits strategy
For nonprofits that may not always be able to compete on salary alone, disability coverage can help strengthen an employee benefits package and support recruitment and retention. Organizations should consider their budget, workforce needs, existing benefits, and applicable employment laws when determining what type of coverage makes sense and has the greatest impact.
Final thoughts
If your nonprofit needs help reviewing its HR policies, employee benefits, or broader HR strategy, SEK’s Outsourced HR team is here to help. Contact them to get started.
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