When selling identity theft protection to your clients, it’s important to remember that employees aren’t the only ones who suffer when they have their identities stolen. Data breaches cost companies an average of $3.62 million, so data breaches and identity theft also have a tremendous impact on a company’s bottom line.
Let’s take a closer look at some of your clients’ biggest pain points and how implementing identity protection for their employees can help.
Decreased productivity and profits
Recovering from identity theft requires a significant time investment. On average, it can take hundreds of hours and up to six months to fully resolve, and if an employee is resolving it without the help of an identity protection service, that translates to a lot of missed work.
Not only will employers lose money while the employee is off the clock, but when he or she returns to the office, the employee will likely be distracted.
Without the assistance of an identity protection program, this workplace distraction can quickly lead to something far worse — employee disengagement. And that can have a tremendous impact on any company’s bottom line.
When employees become disengaged, their companies wind up paying a huge price. To find out exactly how much, let’s turn to Gallup’s annual State of the American Workplace. According to the publication, companies with low levels of engagement experience an average of:
- 20 percent lower sales
- 17 percent less productivity
- 21 percent lower profitability
- Between 24 and 59 percent higher turnover
- 70 percent more employee safety incidents
When employees have an identity protection service to rely on, their minds can be more at ease because they know their issues will be taken care of for them. That frees up mental space more appropriately devoted to work.
Increased liability and risk
Lost productivity isn't the only sore spot for companies when their employees have their identities stolen. With up to 50 percent of identity theft originating in the workplace, businesses can lose a fortune to regulation and litigation as well.
Courts are increasingly holding companies responsible when employee and client data are exposed. Failure to comply with federal laws that protect employee data, like the Fair and Accurate Credit Transactions Act (FACT Act), can result in significant penalties. In addition to these fines, state and local governments are also filing lawsuits against companies that they feel violated the privacy of their citizens.
Damage to reputation
When employees have their identities stolen, their employer’s reputation takes a big hit. This is especially true if an employee has their identity compromised during a data breach. News travels fast in today’s digital world, and it doesn’t take long before the public realizes something is amiss.
Current and prospective clients may choose to work with another company, and your client might even lose some of its best employees. In fact, the situation can quickly snowball into a public relations disaster, which makes it much harder to attract top industry talent.
Potential impact on Human Resources
Employers play a major role in the benefits process, and often the HR director is the primary decision maker. This means you’ll need to pay particular attention to any concerns or pain points they may have. While these can vary greatly across industries and companies, there are some constants.
Lack of time
Like most of us, HR managers and benefits providers are strapped for time, and any identity protection benefit you present to a client will need to seem like an easy decision. Benefits decision makers just aren’t looking for prolonged deliberation about a new benefit. A quality identity protection benefit will make it clear that it is not only a valuable benefit, but also will not require taking considerable time to make an informed decision based on track record and service levels.
Implementing a new benefit can feel risky, especially for HR professionals. Identity protection provides a level of safety other benefits can’t match. In addition to being very cost effective, quality programs will offer a variety of payment models — employee-paid, voluntary, and hybrid. You’ll also be able to overcome risk aversion by presenting a provider with high client retention and customer satisfaction; that way instead of feeling like they’re taking a leap of faith, your clients will know that the benefit is tried and true.
Ease of set-up
The last thing HR and benefits managers want is a new benefit with a lengthy or complicated implementation period, or one that will complicate an existing benefits or enrollment platform. So when benefits managers are taking on a new benefit, they need to know it won’t become a chore.
Plus, any headache they experience during setup will come back to you as their broker. Go in ready to show them statistics on new client onboarding satisfaction and what the process is like. Do they have a dedicated implementation manager to oversee the entire implementation process? Can they adjust the speed of implementation depending on the situation? How many enrollment platforms do they integrate with? Come ready to answer these questions before they ask them of you.
HR managers are looking to strike a balance between excellent value to their company and employees while also managing their benefits budget. If you can offer them a quality benefit with rates that are lower than what an employee can buy at retail, you’re off to a great start. Everyone loves a deal. At the same time, as the truism goes, “You get what you pay for.” Make sure your clients are making the best investment for their organization instead of hunting for the lowest price. We all know how that works out in the end!
Offering identity theft protection as an employee benefit
Of course, these are just small samples of what an identity protection solution should include. For a complete list, you can check out our Employee Protection Solutions. If you want to provide some more information to your HR manager clients and become even more of an expert resource, check out our employee data protection guide below.
At InfoArmor, we believe everyone deserves the right to privacy, security, and above all else, peace of mind. This is why we’re proud to offer industry-leading solutions for employee identity protection and advanced threat intelligence. From enterprise to employee, InfoArmor redefines how organizations combat an ever-changing cyber threat landscape. If you’d like more information on how we can help your organization protect its most valuable assets, reach out. We’d love to hear from you.