As the economic times send employee sickness rates upwards, what should brokers be doing with the Sickness Absence Review in mind? Philip Wood examines the facts.
EAPs offer employees with any mental health issues, or stress, full face-to-face counselling, support and guidance. This is provided by a specialist team of counsellors, lawyers and medical staff, and can also further cover a wide range of lifestyle, health and medical and legal-related problems.
The effectiveness of EAPs is clear. Research carried out last year by FirstAssist showed that before implementation, 47% of respondents said they could not cope with the demands of their job. This compares to just 4% after the introduction of an EAP.
The overwhelming statistics are mirrored by insight from a leading mental health charity, which has found that investing in wellbeing can save employers a third of the cost of sickness absence due to mental health issues. At the moment, tax relief benefits are granted to EAPs and the review recommends that these remain. Employers should provide targeted health interventions aimed at reducing sickness absence.
According to research, 69% of employers say that long-term sickness absence is an issue for their company. As such, the Review highlights the major role that early health intervention plays in getting people back to work, especially for those with common musculoskeletal disorders. As it stands, the current tax system can discourage employers from investing in early medical intervention.
Although the Review states that “the tax system can discourage employers from investing in early medical intervention”, it recommends that employers who choose to invest in interventions should be encouraged, not punished. Thus, expenditure by employers aimed at keeping sick employees in work, or speeding their return to work, should attract tax relief.
Improving attendance management
Lack of access to occupational health was cited in the Review as a significant barrier to managing sickness absence levels. The Review also linked high levels of worker commitment and employee engagement with lower sickness absence levels.
But what does this mean? The Review recognises the valuable role already played by employers in providing any type of healthcare benefits and return to work, or occupational health support.
For employers, as well as brokers advising them in the light of the recommendations, there are a range of options available to help better combat some of the main sickness absence issues reported in the Review.
Employee benefits can play a vital role in helping to manage sickness absence, boosting an individual’s health and wellbeing and improving workforce morale. After all, both long- and short-term absence is not only an issue for employers, but it can also have a major impact on those left in the workplace.
Sickness levels are often cited as one of the main reasons for low morale among those left in the office. But it does not have to cost companies the earth to help absent staff return to work faster whenever possible, depending on the type of illness.
For example, while there is an outlay for a health cash plan, this can be carefully managed by selecting the appropriate levels of cover by choosing a provider that allows you to create a scheme specifically designed for the business. Off-the-shelf schemes can also offer reasonable levels of cover at an affordable cost. Employees can also be offered voluntary top-ups, allowing them to contribute to the cost of cover should they want a higher level of cover – or to extend the plan to cover members of their immediate family.
In today’s economic climate, if company paid schemes are not an option, then voluntary corporate membership plans can also offer clients a simple, no-cost way for their staff to access a wide range of everyday healthcare benefits that can help with both prevention and cure. These schemes also offer excellent annual commission fees to intermediaries
Unlike company paid plans, voluntary corporate packages are completely cost-free for employers. They simply allow companies to provide a platform for employees to meet the cost of everyday healthcare treatments by claiming 100 per cent refunds up to chosen annual maximums.
Health cash plans can also allow clients to offer all their employees quick and convenient access to non-NHS services. This means that any niggling health issues, such as sports injuries or back problems, can be diagnosed and treated quickly and effectively, without the need to visit A&E or a GP.
This, in turn, alleviates the need for an employee to take sickness leave, as it can work around flexitime. In addition to offering tangible benefits to help boost health and wellbeing, implementing a health cash plan scheme can increase morale, which can also impact on absence levels.
The Sickness Absence Review reported that overall sickness absence has steadily declined over the past few years, as a result of employers managing the issue more effectively. The growth of the company-paid health cash plan market is testament to this, as employers are increasingly turning to health cash plans as a cost-effective form of health intervention, providing employees with access to everyday healthcare treatments.
The total number of company paid contributors rose by 11.2% in 2010 – growing by an estimated 93% between 2007 and 2010. This is according to the latest Laing & Buisson UK Health & Care Cover 2011 report.
HELP –in sickness and in health
Straw poll surveys suggest that the broker community does not think that the Treasury will adopt the Review’s recommendations on granting tax advantages to return-to-work products. Despite this, the trend in employers investing in health cash plans, as a form of health intervention, suggests a desire to address many of the sickness absence issues laid out in the Review.
Employee benefits can play a vital role in helping to manage workplace issues, such as sickness absence, boosting health and wellbeing, and improving morale. It does not have to cost companies the earth to help staff return to work faster, but the benefits can be immeasurable.
Health cash plan providers continue to work hard to respond to the demand for products, which help employers better manage their workforce. This includes working with an increasing number of intermediaries and advisers who are reviewing health cash plan solutions.
As work, health and wellbeing go hand in hand, any cut in sickness absence will provide a return on investment for employers investing in return-to-work products.
Philip Wood is executive director of sales and marketing at Health Shield
