Executive Summary
This proposal discusses the benefits of acquiring a Group Legal Plan (“GLP”) for middle-income earners. The GLP will be utilized to deal with the legal problems encountered by employees. The GLP is also utilized to help them with their legal needs, such as the creation of the will, buying a new home, or refinancing their existing home. The proponents of this study concluded that a monthly fee of more or less $20 is an ideal amount that will benefit both employer and employees. With regards to the employees, they will benefit from ready access to legal service that without the existence of the GLP is practically inaccessible to them. In the case of the employers, they benefit from a motivated workforce and the ability to significantly reduce the turnover rate. However, it is important to create a business partnership with a reliable law firm that is more than willing to provide this type of service for the company. Furthermore, members of the Human Resource of this particular firm must conduct due diligence to determine if a GLP type of employee benefit is allowed in this particular state (Robertson, 2009).
Introduction
According to the American Bar Association, 7 out of 10 U.S. Households needed legal assistance every year (Bates, 2010). But most Americans are intimidated by the process of seeking out the help of the lawyer. It is due to the perceived difficulty of finding the right lawyer who will genuinely help them, and not just become an added financial burden (Bates, 2010). For so many decades, middle-income earners are terrified of the mere thought of hiring lawyers for their legal woes (Long, 2012). Due to the impact of the Great Recession, middle-income earners feel that they cannot afford legal assistance (Bowers, 2009). Ironically, it is also in the aftermath of the Great Recession, middle-income earners are in desperate need of lawyers to help them get through a problematic divorce, the need to sell properties or refinance their homes to stay financially afloat. Aside from the need to find a reputable lawyer, the average American will need help in finding the right one who can help them with their own particular set of legal problems (Bates, 2010).
It is an opportunity for employers to step in and find a solution that can help both parties. As a result, Group Legal Plans in the workplace have become an important part of employee benefits because of its usefulness for both employees and employers. Most professionals are aware of the high costs involve in hiring lawyers (Long, 2102). But what if they can afford a lawyer to help them with their legal needs? Aside from the ability to consult a lawyer, what will be the effect if they can have unlimited legal advice? It is easy to understand the perceived benefits of employers because they can expect a positive outcome from increased efficiency and productivity from the workforce (Long, 2012).
On the other hand, workers are motivated to give their best output for the company. An added advantage of a group legal plan is the relatively low cost to participate in a GLP. According to various estimates, the average cost for an individual to join a company-sponsored GLP is $200 or less (Bates, 2010).
Benefits for Employees
Company executives will undoubtedly inquire about the popularity of GLP. If other employers are not using it, the value of GLP will automatically be downgraded, and it will be harder to get approval from management to initiate the process of adopting GLP. It is, therefore, good to know that a significant number of employers are turning to GLP (Bowers, 2009). In the 7th Annual MetLife Study of Employee Benefits Trends, there is a surge in the number of employers using GPL in 2008 (Bowers, 2009). According to Hyatt Legal Plans, GLP use increased 67 percent when it comes to mortgage services; 218 percent when it comes to property tax assessments; 66 percent when it comes to personal bankruptcy; and 120 percent when it comes to financial matters (Bowers, 2009).
Affordable Legal Service
It is a cheap way to get legal coverage (Long, 2012). It is as cheap as other traditional benefits. In some cases, employees are only paying for as little as $20 per month (Long, 2012). It is deducted from the salary of the employees. Therefore, workers are not going to feel the pinch. Consider the impact of having a lawyer assisting the employee when it comes to legal matters such as drafting a will.
A Proactive Way to Mitigate the Impact of Risks and Vulnerabilities
Consider for instance the effect of having legal assistance when it comes to life-changing
Decisions, such as buying a new home. Consider the effect on employees when there is someone they can turn to when they are in a financial crisis, and they need to refinance their homes. Without the help of expert legal advice, one can just imagine the negative impact of making wrong decisions, especially when it comes to crossroads in life, such as adopting a child. If the employee decided to adopt a child from overseas, imagine the cost and the legal debacle that he or she has to go through to accomplish the goal of adopting a child. Without the assistance of a lawyer, there are so many things that can go wrong. In the end, the performance of the employee will be seriously affected.
Enhancing Employees’ Quality of Life
If employees are no longer intimidated by the presence of a lawyer and they are comfortable
Consulting with a legal expert regarding important issues of their lives, then, they can expect to experience a better quality of life (Bates, 2010). They can look forward to building a much better nest egg for their retirement years (Bowers, 2009). They can expect all these good things because they can consult lawyers willing to help them plan an estate (Bowers, 2009). For states that allow GLP, the benefits far outweigh the risk (Bates, 2010).
Nevertheless, company executives, considering the first time implementation of GLP, must be wary of the various aspects of the plan (Nickel, 2006). One of the weak points of the GLP is the service provider (Bowers, 2009). The service provider behaves like health insurance companies, they are not the ones who will directly provide medical assistance to the clients, but they act as a facilitator that connects the clients to the appropriate health worker or medical institution (Long, 2012). It is therefore important to choose an experienced service provider that can help eliminate the red tape that typically characterizes this type of transactions (Long, 2012). A reputable service provider must be able to assure their clients that they can prequalify law firms, that they believe they can provide the right type of service for a specific group of employees (Bowers, 2009).
Benefits for Employers
The challenge to company executives is how to persuade their employees to carry another type of financial burden. Thus, company executives need to have the right perspective when it comes to GLP. They must view it as a practical and cost-efficient way to boost employees’ morale and increase their productivity. Company executives must prepare a strategy that will help employees appreciate the value of a GLP. Employees must be convinced without a shadow of a doubt that their money will be well spent on the GLP. Once approval and the consensus have been achieved, company executives were able to hurdle the most important part of the implementation process. From this point forward, the adoption of a GLP plan into the employee’s remuneration package is no longer a problem, and the human resource department can coordinate with the service provider to complete the paperwork needed for the GLP to be activated (Nickel, 2006).
Employers must consciously develop strategies to continually inspire workers because the ability to motivate an employee is not the by-product of unconscious effort (Brock & Green, 2005). The ability to motivate workers is the end-result of knowledge gleaned from the study of management principles and human behaviour (Brock & Green, 2005). An overview of the workforce will help employers realize that information or knowledge about human nature is an important component of motivation (Kaufman, 2003). Thus, company executives that made an in-depth study of human interaction and motivation will realize that the use of proper strategies must be directed at the different aspects of the workplace. Motivation principles do not affect only a small part of the person but a part of a whole, the fusion of elements that includes: inclination; awareness; and ability (Ritchhart & Perkins, 2002).
Enhancing Employees’ Remuneration Package
It is imperative that company executives are the first to see the value of the GLP (The Balser Group, 2014). Without the go signal of the employers, it will take some time before a smooth transition into a new system can take place (Robertson, 2009). The employers must see GLP as a cheap way to enhance employees’ remuneration package (Robertson, 2009). The employer’s clout and resources enabled the human resource department to initiate the process of adding GLP, as one of the perks that employees can get while working in the company (The Balser Group, 2014). However, the money to pay for the service is taken from employees’ pockets (Robertson, 2009).
Motivates Employees and Reduce Turnover Rate
The availability of a system that will enable employees to acquire the assistance of a lawyer will surely increase the value of the company (Brown, 2011). Employees will be grateful to their employers that such a system is in place (Adamson, Chan, & Handford, 2003). Company executives will undoubtedly see the usefulness of the GLP when it comes to employee motivation and its capability to reduce the turnover rate (Bowers, 2009). However,
company executive must not overdo it and make a promise that they cannot keep (Bates, 2010). From the onset, they must be transparent, and inform employees that the following legal services are excluded from the GLP:
- сlass action suit;
- routine tax matters;
- legal action relating to an outside business or profession;
- legal action involving the employer (The Balser Group, 2014).
Enhances the Efficiency of the Workforce
If employees need the services of a lawyer, then, it is just practical for them to take time off from their jobs to talk to the attorney (Bates, 2010). But if there is already a service provider that the company can tap in order to deal with the legal needs of the workers, there is no more need for them to use their vacation leave or sick leave just to be able to spend time away from work, and take care of their legal problems (Robertson, 2009). As a result, workers are going to get a double treat (Bowers, 2009).
Examining the Other Elements of the Group Legal Plan
At first glance, a GLP seems to be a flawless system from beginning to end. It seems that there is no weakness in the proposed plan to provide cheap legal assistance to employees (Bowers, 2009). But after careful examination of the process, a potential source of the problem is the service provider (The Balser Group, 2014). If the system works like a health insurance coverage, then, the service provider is the linchpin that holds everything together (Bates, 2010). In other words, excellent legal service is unattainable without the expert help of an experienced service provider (Nickel, 2006). It can be argued that the service provider is the weak link in the whole process (Everett-Nollkamper, 2014). Therefore, due diligence must be observed to assure employees that their hard-earned money will not go to waste (Everett-Nollkamper, 2014).
The Importance of Linking to a Reputable Law Firm
Assuming that a small company avails of a GLP from a reputable service provider and at least 100 employees signed up to use its services (Bates, 2010). Assuming that the average cost is $20 per month, then, this means that for a whole year, the service provider collects at least $24,000 (Long, 2012). This particular amount is not loose change. However, the service provider deducts certain fees as part of the service provided (Long, 2012). Assuming that they will use $20,000 of the remaining amount to secure the services of experienced lawyers, the question of quality service will arise (Long, 2012). It is a legitimate question because even if $20,000 is not a small amount, certain law firms can generate the same revenue working for a single client (Robertson, 2009). It is important to acquire the assistance of a service provider that can locate highly motivated lawyers that will work with middle-income earners (Everett-Nollkamper, 2014).
Value-for-Money Proposition
Based on the amount of money that is available to secure the services of a reputable law firm, it is safe to assume that there are certain limits to the type of services that can be offered by the lawyers. Company executives and the workers must not forget that with the amount of money that they spend, they cannot expect to get the type of service offered to multi-millionaire clients. Therefore, their expectations must be tempered by the reality of how law firms operate. Employees must be willing to work with smaller law firms. Employees should expect limits to the type of assistance that they can access, and this will fall into regular legal issues such as the need to write a will and the need to buy or refinance a house (Trebilock & Duggan, 2012). Nevertheless, company executives must continually look for ways to include the following legal services into the said GLP:
- Real Estate Transactions;
- Divorce;
- Adoption;
- Simple wills and trusts;
- Bankruptcy proceedings;
- Defense in traffic cases that could result in loss or suspension of driving license;
- Defense in civil or criminal cases;
- Financial planning (The Balser Group, 2012). If employers can provide all of the above, they can increase the job satisfaction rating of workers.
Background Check on Service Providers
There is a need to carefully scrutinize the law for each respective state when it comes to group legal plans. According to legal commentaries, almost all the states ethically permit lawyers to participate in a prepaid group legal plan (Everett-Nollkamper, 2014). It is important to find out what it means to be ethically correct in allowing employers and law firms to work together, and develop an employee benefits plan like this. It is imperative to find out if the company will not violate certain laws by establishing a similar system within the organization. It is also important to note that large insurance companies are offering GLP (Everett-Nollkamper, 2014).
Thus, company executives must figure out if it is best to use the services of the company’s current insurance provider to acquire GLP. Company executives must try to persuade service providers to offer the best possible package based on a particular plan. For example, the company must insist that there should be a toll-free number and online access that employees can use to get hold of a panel of lawyers. It is an added benefit to the company and the employees because the availability of the said feature means that they can solve some of their legal problems over the phone (The Balser Group, 2102). In addition to ease-of-access, company executives must work out an agreement to include legal services in a criminal defense case. If the plan does not completely cover it, the company executives must work out an agreement so that employees pay a reduced hourly fee for the lawyer’s fees (The Balser Group, 2012).
Conclusions and Recommendations
The adoption of a GLP is a mutually beneficial proposition for employer’s and employees alike. Through the use of the GLP, the employees can access cheap legal service in the most cost-efficient manner, because of their ability to cut through red tape and get things done. As a result, employees have more time to do their work. No need to request time off from work to deal with common legal issues such as buying a new property or refinancing their current home. It is truly an effective tool that business owners and company executives can use to motivate the workforce.
Nevertheless, it is imperative that company executives, in conjunction with the human resources department, strive to be transparent at all times, and avoid making promises that they cannot keep. Nevertheless, it is important to develop a GLP that includes assistance for common legal issues. If the GLP does not fully cover a particular legal problem, it is important to add a feature that enables employees to pay for a reduced hourly rate for acquiring the services of a lawyer. A major aspect to consider is the need to partner with a reputable service provider. A reliable service provider will ensure the linkup between employees and an experienced group of lawyers that will help them in time of need.
References
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