Have You Considered Income Protection as Part of Your Business’s Employee Benefit Package?

UK employers are not always aware of what their responsibilities are when it comes to paying an employee who is off work sick. Some businesses do not have provisions for unexpected accidents or illness within their workforce, and don’t understand the legal implications of this. This could result in unbudgeted costs for a business, paying a staff member when they are unable to work over a long period of time due to illness or injury.

It could be easier and more affordable to your business than you think to provide income protection cover to your employees as part of their member benefits.

Employee benefits for today’s working force

Employee benefits are more important than ever to today’s UK work force. They can make your business stand out which in turn can attract the right, talented individuals to your business. Perhaps you already have a level of employee benefits in place. The needs of our employees and the benefits we offer them may need to be evaluated from time-to-time to ensure they still meet the expectations of our employees over time.

Have you taken a look at your employee benefits recently?

Income protection as an employee benefit

In a recent survey (Epoq May 2017), UK adults were asked how valuable a series of services were to them within their employee member benefits package.

It was found that income protection fell into the top 6 most valued employee benefits at 85%.

Income protection outweighed many of the traditional benefits including gym membership (62%) and child care vouchers (41%).

Furthermore, research shows that on average 1 in 7 employees are absent for 4 weeks or more each year with a serious illness or injury (Ellipse research 2016). State Sickness Pay (SSP) covers just a fraction of an employee’s salary (£92.05 per week, DWP, April 2017) and lasts just 28 weeks. After this, they may qualify for Employee and Support Allowance (ESA). It also could be down to your business to determine if it’s possible to provide the employee with a level of salary to support them during recovery or illness once SSP ends as well as potentially having to hire another person to cover their job role in the meantime. This could come at a substantial cost depending on your employee’s role level within your business. If this isn’t an option for your business, then it may be down to your employee to rely on their savings and the support ESA provides if they qualify. This could put your business in an unnecessary moral dilemma.

With illness or injury at this level, it may be worth considering an employee benefit that can provide your employee a percentage of their gross salary thus providing peace of mind for them during recovery so that they can get back to work sooner but also providing your business with a manageable illness or injury cost annually.

How does it work for your business?

Income protection insurance as an employee benefit can provide a replacement income to an employee should they be off work due to illness or injury. Income protection insurance typically covers a percentage of the employee’s gross salary during this period.

The replacement income provided can begin within the time from selected by your business. This can start from day one or you can select a deferment period of your choice, such as 7 days or 6 months.

The income protection plan you provide your employees would be easy to work into your budget and takes the guess work out of staff sick pay and the unexpected costs this creates.

What should I do next?

If you’ve established that income protection cover is something that your business needs to consider, don’t hesitate to get in touch.

PG Mutual provide Income Protection Plus plans at an affordable cost to employers. Please take a moment to find out what would make our Income Protection Plus plan beneficial for your business. For more details about Income Protection Plus, visit www.pgmutual.co.uk.

Give us a call on 0800 146 307 or email us at enquiries@pgmutual.co.uk.

Alternatively, if you’d like to learn more about employer sick pay and your business’s requirements, you can check out Statutory Sick Pay (SSP): employer guide, by visiting www.gov.uk/employers-sick-pay/overview.