A recent study from Unum has shown that a lack of financial protection amongst UK workers is impacting their employers with almost two in three companies stating they had suffered from the effects of long term sickness absence.
Of the companies polled more than half continue to pay employees' their full pay for six months or more if they are off work due to illness or injury.
It is the employers who are shouldering the burden with a mere 22% protecting their own business and all or some of their employees by offering any form of financial protection
It is not just larger organisations that are feeling the impact, it is companies right across the board. Looking at organisations with more than 500 employees, 69% say long term sickness absence has a financial impact on their business where 40% or smaller companies with fewer than 500 employees are also seeing a financial impact.
Looking across the UK working population, long term absence is a reality for many, 31% of employees claim that they have had to take at least one month of work as a result of illness or injury. Over 2 million workers stated they have had to take more than 6 months of work due to illness or injury.
Unum's Chief Marketing Officer, stated: “Long-term absence is a real financial burden for UK businesses. In the current economic climate long term absence is only likely to place greater strain on organisations and unfortunately our research shows that as companies are not taking steps to protect themselves or their employees, it will continue to be a financial drain on businesses for some time to come.”
If you are considering implementing a group income protection scheme to address this financial burden or are looking to review an existing plan then please do not hesitate to get in touch. We work with a wide array of organisations to ensure their employee benefits fits both the needs of the employee and the organisation and are implemented at the most competitive rates.
Michael Barrow was absolutely awesome, professional and truly helpful all the way setting up our insurance policy, made it super easy to select the right one. Highly recommend him for everyone. Thank you so much for your hard work Michael.