The Case For Health Benefits
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 employee benefits, and recognising the impact that sickness absence has on the bottom line.
In 2010, the average number of sick days taken by employees in the UK was 7.7, with a median cost to the employer of £600 per employee per year1. 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 absent2.
So what are the most common causes of employee absence? The CIPD Absence Management Report in 2010 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.
Implementing and keeping health benefits is far less costly to businesses than trying to pay cash. In fact, the value perception of health benefits among staff is far greater than their actual cash value. And what’s more, 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 Report 2010
2 CBI Absence and workplace health survey 2010
