Employee absence: measuring the cost to this company
The Business and their current situation
Engineering company based in Essex, wanted to evaluate the real cost and impact to their business due to employee absence caused through sickness. They also wanted to increase the perception amongst staff and customers of being an employer who cared about their employees, including their welfare. The company was keen to provide a good level of employee benefits, that would be valued by their staff.
The senior management team were concerned with their current provision of an ad hoc arrangement; in which each senior manager made their own decision to pay sick pay for certain key employees, on a case by case basis. The company felt that this was not cost effective and could potentially be seen as unfair, by some of their employees. The client also told us of recruitment problems they experienced when trying to attract new employees with the required skills set and having to compete with their competitors for these candidates in an ever shrinking employee market, for these skills.
We were able to work with the company to help calculate and measure the real cost to the business of their current arrangement and measure this against the viability of implementing a Group Income Protection policy. The benefit would cover several hundred employees which would only equate to the amount paid in the previous year for two employees, both of which were middle managers and had been off sick respectively for between 6 months and a year. The company decided to implement the recommended Group Income Protection scheme. A subsequent survey carried out by their HR department with employees six months later showed there was a high regard for this benefit.