01 Dec 2016

Why employers need to step up managing employee health

In October Ellipse surveyed 1,005 UK SME employees about absence. Results show that HR professionals need to be more aware of how likely it is they will deal with a long-term absence, and what they can do to support their people.

1 in 7 employees declared they had been absent for four weeks or more in the past 12 months. Compared to the 1 in 18 risk published by the government early in November, our results show long term absences actually occur more often than people expect.

The chances of larger businesses needing to support employees suffering a long-term illness or injury, will be frequent and this calls for HR professionals to be thinking more seriously about how they support their employees. Being prepared to face this level of absence is vital and sweeping it under the carpet just won’t do.

This is a very real risk that employers of all sizes need to prepare for. That’s why it is important employers have a support network in place, including rehabilitation services and appropriate specialist support, if an employee falls ill or suffers an injury.

Government influence

With cuts to disability benefits set to continue, in early November the Government issued a green paper, ‘Work, health and disability: improving lives’. The paper called on employers to do more to care for their employees' health and wellbeing and highlighted how income protection products could help them to do so.

Tracey Clarke, who was helped by 7Families, a charity led campaign to raise awareness of the financial impact of long-term illness or disability, said how quickly things can change: “Injury, illness or disability can snuff out the ability to hold down any job. The benefits system is scary, complicated and meagre in its offerings.”

Combined with the increasing risk in a long-term absence occurring, employers need to be thinking about how they can be ready to support their employees financially in the event of long-term absence. And in turn, helping to minimise the risk of employees having to rely on state benefits.

The Government has recognised that income protection has an important role to play in how businesses can support their employees’ wellbeing in the event of long term absence. As a result, employers now have a more crucial role to play in ensuring employees are engaged with the benefit and understand what it provides them.

Income protection products’ role

So for those of you who already have income protection, are you making the most of it? Many income protection products come with services such as employee assistant programmes (EAP) and case management services that can help you to care for the wellbeing of your people.

In the event of potential long term absence, as soon as you are aware you should be notifying your provider. Case management services from your insurer will help ensure your employees receive appropriate wellbeing support and can therefore return to work at a pace that is right for them, all with the knowledge that any long term sickness costs are taken care of through the insurance.

For those without income protection, in 2010 the Government launched Fit for Work, to improve awareness of rehabilitation and workplace support. The service provides a £500 maximum tax exemption to employers, allowing them to refer sick employees toward appropriate healthcare services that will help them return to work.

While this is a reasonable solution for those without income protection, Fit for Work only provides a basic level of support and employers would benefit from seeking in-depth consultation from their financial adviser about the more comprehensive services income protection provides.

Following this year’s green paper, the Government are likely to increasingly put more pressure on employers to provide income protection services that also care for employee health and wellbeing. Combined with the fact that long term absences are more common than we thought, HR professionals need to be focusing on their solution to supporting employees who are absent.

Whether that means making the most of income protection services already in place, or taking steps towards offering a more complete solution, these are positives outcomes for employers that will help them to offer long term financial protection as well as wellbeing and healthcare assistance to their people.

This article was provided by Ellipse.