Health benefits implemented by employers for their workforce can have a dramatic effect on company productivity and morale, so it is no surprise that more and more businesses are introducing health cash plans as an employee benefit, recognising the impact that sickness absence has on the bottom line.
In 2014 the average number of days taken off sick was 6.6 per member of staff costing an average of £609 per annum per employee1. Loss of productivity is seen as the single most important cost of employee absence, followed by the cost of the sick pay itself, and the cost of hiring extra staff to cover for those who are absent.
So what are the most common causes of employee absence? The CIPD Absence Management Report in 2014 found that stress, musculoskeletal injuries and back pain were amongst the top five causes of short-term absence from work for both manual and non-manual workers in Britain1.
Why do employers use health benefits?
In the main, most employers across Britain are much more aware of the value of employee health benefits. Employee benefits are mostly seen as an inexpensive way to reward and engage staff to boost productivity, and one of the most beneficial perks, for both business and employee, that can be offered is a range of health benefits.
Health benefits can be used to keep staff loyal, healthy and incentivised. During tough economic times, the business case for implementing an employee benefits scheme has never been stronger.
1 CIPD Absence Management Annual Survey Report 2014
Rising absence costs are a concern for all businesses, which is why we've made it easy to find out how much sickness absence could be costing your company in just a few seconds. Together with data from the Chartered Institute of Personnel and Development (CIPD) we have developed a calculator to help you.