Nearly eight in ten employers (77%) have directly funded support for an employee who has been ill or injured, according to new research from GRiD, the industry body for the group risk sector.
While stepping in to help an employee through a difficult period is well-intentioned, GRiD warns that relying on ad hoc funding can create financial, legal and practical challenges for employers – and may not always deliver the most effective support.
The financial risks of ad hoc support
One of the biggest challenges is the difficulty of predicting and controlling costs. While an initial contribution towards an employee’s treatment or rehabilitation may seem manageable, support for serious conditions such as cancer can quickly run into tens or even hundreds of thousands of pounds for a single individual.
As these costs are often unexpected, they can put pressure on organisational budgets and affect the bottom line. There may also be unintended tax implications for employees, including potential P11D reporting requirements.
Katharine Moxham, spokesperson for GRiD, says that costs can escalate rapidly, making it difficult for employers to maintain oversight and consistency when decisions are made on a case-by-case basis.
The challenge of fairness and consistency
There is also the question of how employers ensure that support is provided fairly across the workforce.
Once an organisation has funded treatment or other assistance for one employee, colleagues may reasonably expect access to similar support if they face comparable circumstances. Meeting those expectations can increase costs over time, while inconsistent decisions may expose employers to potential discrimination claims.
Clear policies and processes can help organisations make decisions more consistently, rather than relying on individual circumstances or who happens to make a request.
Getting the right support at the right time
A further challenge is knowing which interventions will deliver the best outcomes.
Supporting someone back to health and work can involve a combination of physical and mental health interventions, often requiring different specialists and services to work together. Access to timely, coordinated and holistic support can improve health outcomes and reduce the time employees spend away from work.
This is particularly important when an employee is dealing with a serious or complex condition and may need more than one form of support.
The role of employee benefits
GRiD believes employer-sponsored group risk benefits can provide a more structured way to support employees while helping organisations manage costs and maintain consistency.
These benefits include life assurance, income protection and critical illness cover. Depending on the arrangements in place, they can also provide access to additional services such as specialist medical advice, second medical opinions, physiotherapy and counselling.
Such support can help employees access appropriate care when they need it, while giving employers greater clarity over the services available and the costs involved.
Moxham says employers should be recognised for their willingness to help employees during difficult circumstances. However, she cautions that directly funding support on an ad hoc basis can leave both the individual and the business facing challenges.
A perspective worth bearing in mind
As the industry body representing the group risk sector, it is perhaps unsurprising that GRiD advocates employer-sponsored group risk benefits as a solution to the challenges of funding employee support. These products can play a valuable role, but they are not the only way employers can provide health and wellbeing support. The right approach will depend on an organisation’s size, workforce needs, existing provision and available resources. Employers may also draw on occupational health, employee assistance programmes, health cash plans, workplace adjustments and other forms of support to help people stay well and return to work.
The wider lesson is that supporting employee health should not depend solely on an employer’s ability to respond when someone becomes ill or injured. A clear, planned approach can help ensure people receive appropriate support, while making provision fairer and more sustainable for the organisation.
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