In today’s digital world, new risks emerge every second. Remote work has greatly contributed to the possibility of hackers targeting your organization. The risks to a company’s bottom line and reputation are high if there isn’t a robust cybersecurity plan, which includes employee Identity protection, in place.
Last year, 15 million U.S. consumers were victims of identity theft, according to the 2022 Identity Fraud Study from Javelin Strategy & Research. Criminals used personal information from these individuals that amounted to $24 billion in losses.
An employee identity protection plan protects the employer as much as it does the employee. Why is it smart to invest in employee identity protection for your employees? Let’s take a look.
Protect Productivity and Profits
It can take over six months to recover from identity theft. This can result in missed work, increased distractions, and an overwhelming lack of focus that can quickly lead to a disengaged workforce that are indifferent and neither like nor dislike their job. For those who have experienced identity theft, 59 percent say they were distracted at work and 44 percent took time off of work, according to a 2019 LegalShield Workplace Study.
Low levels of engagement negatively impact even the best companies. When compared with businesses that have the highest levels of engagement, those with very low levels typically experience lower sales and productivity and higher turnover and safety incidents. Companies with engaged employees have better employee retention, customer satisfaction and even a 23% positive difference in profitability, according to a Gallup study.
With a quality identity protection plan in place, certified advocates can act on an employee’s behalf. This helps eliminate or reduce the most tedious and time-consuming parts of undoing the damage of identity theft so employees can focus on their job.
Reduce Liability and Costs
Depending on how an employee’s identity was compromised, a company could find itself facing a massive lawsuit. That’s because courts are increasingly holding companies responsible when they expose the personal data of employees and customers. Considering as much as 50 percent of identity theft originates in the workforce, this can be a significant risk for businesses.
When companies fail to comply with laws that protect employee data, like the FACT Act, they can face millions in fines from the Federal, as well as state and local governments.
Providing identity protection as an employee benefit sends a signal from employers that they value their employees’ privacy and are taking active steps to protect them. This, coupled with a comprehensive security plan, can significantly reduce litigation risks.
Reputation Damage Control
The fines and lawsuits that accompany a data breach that cause significant financial repercussions to a company are just one wave of damages. There is also reputational damage. Businesses that suffer data breaches can quickly find themselves in a PR nightmare — especially if they don’t offer their employees identity protection.
Chances are, they’ll lose a significant amount of potential business as well as lose current clients. Additionally, the company will likely lose some of their best team members and have difficulty hiring new ones.
Offer Employees Peace of Mind
Americans ranked criminal hacking as the number one threat to their health, safety, and prosperity in a 2017 survey. That number is certain to be higher during today’s workplace, which is increasingly becoming remote or a hybrid remote work scenario.
For those who have suffered through an incident, 59 percent say they were distracted at work, 47 percent made phone calls during the workday and 44 percent took time off of work, according to the LegalShield Workplace Study. Of all of the respondents, 89 percent feel that owning an identity theft product would provide “peace of mind.”
Attract and Keep Employees
Providing employees with identity protection helps employers not only attract top talent, but also retain them. This impact is especially true for millennials, 60 percent of whom say employers should help support their financial, social, and physical well-being. Employee identity protection helps protect all three areas.
Cyber criminals are becoming more sophisticated and the workplace is becoming more vulnerable to risk. It’s not just smart to invest in employee identity protection, it’s necessary.