Supporting employees
when they need it the most.
Every business experiences sickness absence. An effective
wellbeing strategy can help your staff stay healthier and help you better
manage sickness absence. But there is no way to eliminate it completely –
especially when it comes to serious illness or injury. While most companies
know their sickness absence costs, many are unaware of how much they could save
by stepping in early.
A recent report by the Centre for Economics and Business
Research (Cebr) reveals that long-term sickness absence (6 months or more),
costs UK businesses £4.17bn every year. This means it’s costing a typical
business of more than 500 employees over £770,000 a year. It’s also a growing
problem. As the make-up of the workforce changes and the number of older
employees grows, this will only increase.
However, by providing access to support early on and
proactively using early intervention services, businesses can reduce the length of a typical absence by 17%. For mental health conditions,
the most common cause of absence, this rises to 18% - meaning an absence of 7
months would be reduced to 6 months.
The cost of long-term sickness
absence
Key findings
To the economy as a
whole (public and private sector) £6.71bn
To your business* £770,000
Per employee* £208
To UK business £4.17bn
(*more than 500
employees)
The cost of mental health
With an estimated 3 in 10 fit notes issued by GPs concerning
mental ill health (CIPD, 2014), it’s no surprise that mental illness, including
stress, is the most common and costly cause of sickness absence – amounting to
a £1.17bn, a quarter of the total cost
of long-term sickness absence. It’s
where early intervention services have the greatest effect – shortening the
length of mental ill health absence by 18%. By spotting the early signs of
mental illness in the workplace, employers can start conversations with
employees and put relevant support in place – sometimes even before an employee
goes off sick.
Courses such as Mental Health First Aid can help HR and line
managers learn how to deal with mental health in the workplace. Other services
such as Employee Assistance Programmes and Cognitive Behavioural Therapy can
give employees access to tools to help them cope with or control their
condition.
A growing problem
The cost of long-term sickness absence is rising - increasing
by £240m over the last 2 years. And, as the make-up of the workforce changes
and the number of older workers increases, it’s likely the cost will reach
£7.6bn by 2030 – an increase of £890m. Employers clearly need to take action
and think about not only prevention, but how they can step in to provide the
support their employees need to address their illness while still in its early
stages.
Sickness absence costs UK businesses £4.17bn every year. A
quarter of this cost (£1.17bn) is due to mental ill health. Early intervention
services reduce sickness absence by 17% - a reduction of more than an entire
year for the average long-term absence of 7 years.
Group Income Protection
policies with early intervention
services offer businesses significant savings. For every £100 an employer spends,
they get an average payback of £61. If employees actively use the services on offer,
this increases to £66.
What can businesses do to support their employees?
To minimise the likelihood and cost of sickness absence to
your business, putting a health and wellbeing strategy in place is key. While
prevention is typically the focus, intervention is just as important -
providing services which allow employers to step in when employees show the
first signs of a health problem.
A variety of intervention services are available to employers
and employees - often included as part of a Group Income Protection package. Support on offer can range from “self-serve”
information online, to telephone support, face-to-face counselling and absence
case management.
Early intervention services you can use:
Employee Assistance Programmes
(EAPs)
Access to information and support on work/life issues –
including legal matters. Some EAPs also offer counselling services for
distressed employees.
Early intervention
- Helpline
Information for employers on how to
best support an absent employee – or a struggling employee in the workplace who
is likely to go off sick.
- Cognitive Behavioural Therapy (CBT)
Helping employees to rethink the way they
behave in certain circumstances such as anxiety or depression.
- Vocational rehabilitation services
A team of experts offering support to
employers and employees – including active case management and return to work guidance.
Access to rehabilitation support in the first 6 months of an absence could even
help employees return back to work before they become long-term absentees.
- Mental Health First Aid
A 2-day course helping employers
learn how to spot the signs of mental health issues in the workplace and how
best to support employees quickly and confidently.
- Positive ageing guidance
Information and support for employees
around ageing and caring for elderly family members.
- Physiotherapy
Helping employees to manage pain and introducing
treatments to aid recovery.
Sources:
“The Benefits of Early
Intervention” by Centre for Economics and Business Research, commissioned by
Unum (October, 2015)
CIPD Absence
Management – annual survey report (2014)
The
bottom line
Not only is use of early intervention and rehabilitation
services driving down the typical length of long-term absence, it is also
generating an additional £270m worth of ‘payback’ to UK businesses. This can
mean significant savings for companies. In fact, for every £100 you spend on a
Group Income Protection policy with early intervention services, you get an
average payback of £61 – the result of savings on replacement salary costs,
less impact on productivity, and a reduced need for recruitment and training of
new staff. If an employee actively uses the intervention services on offer,
this payback increases to £66.
It’s clear that ensuring your employees are healthy and happy isn’t just
the right thing to do, it directly impacts your bottom line. Smart businesses should consider how they can
provide their employees with early intervention services, such as those you
receive as part of a Group Income Protection plan. Even more importantly, they
should ensure their employees know about the services available and take full
advantage of them.
To read the full
report, go to: unum.co.uk/early-intervention
(With thanks to Unum for their kind permission to reproduce this
article)
If you would like to find out more about the benefits of a
Group Income Protection scheme for your business, please contact:
Richard Birch FCII APMI APFS DipIEB
Chartered Insurance Practitioner
Director - Employee Benefits
In2 Matrix
(UK) Ltd
101 Finsbury
Pavement
London
EC2A 1RS
EC2A 1RS
Tel DDI +44 (0) 203 638 5159
Website: www.in2matrix.com
