More than a third of employers (36 percent) directly fund support for staff with a new illness or injury on a case-by-case basis, according to research from Grid, the group risk industry body. While this approach can appear generous, Grid argues it creates serious risks for organisations.
The research highlights four main problems. First, case-by-case funding relies on the employer being aware that an employee has an issue, yet many people choose not to disclose health conditions. Second, it can be prohibitively expensive: some organisations end up paying hundreds of thousands of pounds in direct support. Third, it is very difficult to plan or budget for, since demand can fluctuate from year to year, leaving questions about what happens if funds run out. Finally, it risks inequity, with some employees receiving much more support than others, potentially exposing the business to criticism or even legal challenge.
Approaches to providing case-by case-support vary widely. A quarter of employers (26 percent) said they step in after a set number of weeks’ absence, while 20 percent provide support from day one and 19 percent wait a set number of months. Only 12 percent of employers reported that their focus was on preventative measures to reduce the likelihood of staff falling ill in the first place.
The government’s Keep Britain Working Review, led by Sir Charlie Mayfield, is due to report later this year and has already flagged prevention as a key theme. Employers that have invested in preventative care may therefore find themselves ahead of the curve, the industry body said.
Katharine Moxham, spokesperson for Grid, said: “Every employer naturally hopes their staff can return to work and full productivity as swiftly as possible following an absence. However, this is not always the reality. Employers risk incurring prolonged and potentially costly support obligations, often without a definitive endpoint if they fund support on a case-by-case basis.”
She added: “Employers should take a broad approach to employee support, recognising that preventative, immediate, and ongoing interventions are interconnected rather than isolated efforts. While these forms of support can be funded directly, taking advantage of the wide range of employee benefit options available is a more financially effective and comprehensive solution. Organisations that integrate support through employee benefits will also be better positioned to meet the needs of their staff and are likely to be better prepared for any policies or recommendations that arise from the Keep Britain Working Review.”
