Average Worker's Income Drops By £430 Per Week
Recent research from LV= has shown that workers lose £430 of income when off sick, a figure higher than most employers would think.
Sickness absence costs money.
From the first day, there’s an impact on the bottom line – on productivity, on colleagues and on managers struggling with time, sickness administration and policy compliance issues.
Whilst no one wants to believe they will be off ill, stats demonstrate that a period of illness over your working life is likely.
If an employee does go off through injury or illness recent research by LV= suggests the average worker’s income drops by £430 a week if only provided with statutory sick pay by their employer.
This obviously has a significant impact on an individual’s or families finances and can lead to further distress and anxiety impacting on their mental health. So as a direct consequence of being off ill even if the initial cause of illness has no connection with stress/anxiety the illness can then be compounded by such concerns.
Workers may then decide to hide the illness from their employer. The research showed this occurred 34% nationally rising to 55% in London. The reasons given include 38% being concerned that this would be looked upon unfavourably by their bosses and 22% having wages affected. Is this really the outcome you want from your valued employee?
Of course it is important to recognise that any individual who is “swinging the lead” must be identified and dealt with but the majority of workers do find attending work beneficial not just for the financial but also the wellbeing reasons.
As always early intervention is crucial and using the available support services is vital.
Long term insured income protection has been around for a while but recent developments have seen insured short term sick pay become invaluable. Whilst currently premiums can be quite costly to cover all employees, offering cover for your key individuals/teams can be a valued benefit for both employer and employee. Utilising different features within the policy ie differing benefit amounts, periods will assist with controlling the premium costs.
A few of the benefits are:-
- Predictable Costs
- Professional Claims management and absence support
- Business continuity
- Employee Assistance Programme
You can click here to learn more about the group income protection DAM can offer.
Photo credit goes to foshydog