Sick Pay revelations
Only 10% of companies have insurance to cover long-term sick pay.
Nearly 70% of employees at SMEs believe their employer would provide sick pay, emotional and practical support if they were absent for a long period of time and just over half (51%) expect their employer to continue to pay them.
But a survey of 250 SME decision-makers found only 10% have insurance to cover sickness pay in a period of long-term sickness.
Just 6% of employers said they would continue to pay their employee’s full salary after the statutory sick pay period, while 43% said they would continue to pay part of the employee’s salary and 35% would not pay anything after the statutory sick pay period, the survey by digital group risk insurer Ellipse found.
John Ritchie, chief executive of Ellipse, said there is a gap in expectations and reality between employee and employer.
“While large numbers of employees expect financial, emotional and practical support from their employer, SME employers are not prepared as too few have chosen to insure sick pay. It means they are taking on a significant financial risk to meet expectations if they arise,” said Ritchie.
Sick Pay as an employee retainer
The survey suggests large numbers of SMEs are confident in their ability to provide emotional and practical support, with only 42% valuing an external support service for their staff. This is in stark contrast to 86% of employees who said they would value an external support service.
“This suggests that in addition to financial support, employers should consider whether they would be able to support employees emotionally and practically on their own. Workplace support and rehabilitation services can be extremely useful and it’s clear that the vast majority of employees would welcome the extra support,” said Ritchie.
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