The ‘Protection’ Series Part 2: Workforce Protection and the Recruitment Benefits to Set your Business Apart

November 1, 2017

“The average number of sick days for a UK employee is 4.3 days a year. 14% of businesses see staff take more than seven days off each year.” (Office for National Statistics, 2017)

 

“Absenteeism costs the UK economy £15 billion a year.” (National Institute for Healthcare Excellence)

 

 

In the second instalment of our first ever blog series on the subject of ‘protection’, we look at ways of protecting your workforce, and how this can benefit both employee and employer.

 

When it comes to attracting new staff, every business now offers a pension scheme, which means benefits packages have become the new competitive offer in recruiting and retaining staff.

 

This doesn’t have to mean investing large sums into private medical care, dental or optical plans. Here, we go through the affordable options that will stand to benefit both employee and employer.

 

 

       1. Death in Service Scheme

 

What is it?

The cost of attracting new staff and retaining an existing workforce can be covered with the offer of an attractive benefits package. It is an investment that can avoid your business missing out on good candidates by becoming an employer of choice within your industry.

 

A Death in Service Scheme is an employee benefit that provides life insurance for your workforce. This means should an employee pass away their beneficiary, (normally the immediate family) will receive a lump sum payment, usually based on a multiple of salary..

 

Who should be considered for it?

This is a scheme any business can offer as part of a benefits package, alongside your pension scheme. It therefore protects anyone on the payroll, and is offered in various industries from high street retailers to offices and manufacturing.

 

How does it work?

As the employer you can will be responsible for paying the premium. The big attraction of these schemes is that there is no underwriting for most employees.  

 

Should an employee pass away whilst still on the payroll, the Death in Service benefit pays out a lump sum to the nominated beneficiary. The sum is usually between two and four times the salary amount of the employee, making it an attractive option for individuals who don’t have personal life insurance.

 

 

       2. Group Income Protection

 

What is it?

When long term illness or injury occurs, the household income can take a hit. Protection of income is a valuable asset for a situation that can easily happen so often.

 

Group Income Protection is when the employer offers cover for the workforce, which means if an employee is unable to work for a prolonged period their income is still covered. There are also additional measures you can take as an employer to improve absence management and protect your business (see point 3 below).

 

Who should be considered for it?

This is a scheme that covers the workforce, so anyone on the payroll can be included.

 

How does it work?

If an employee is unable to work, then the Income Protection payment will usually start after a deferred period (often 26 weeks) and continues until the employee returns to work, or you can also include a fixed termination age. The payment is often around 75% of the wage, to cover expenses but to also give an incentive to return to work.

 

 

       3. Employee Assistance Programmes

 

This is an optional extra you can add on to a workforce protection scheme. It helps employees get back into work by providing doctor visits at home or in hospital. The employee’s progress is assessed, monitored with on-going support and, where necessary, a rehabilitation programme or counselling can also be offered.

 

Employee Assistance Programmes help to improve absence management in a positive and effective way, and can also protect the employer by avoiding false unfair dismissal cases.

 

 

Get Expert Advice

With advice from an expert, independent financial advisor you can create a scheme that is tailored to your staff needs and will set you apart as an employer of choice in a busy marketplace.

 

 

Reach Laurus Associates directors Karen Barwick and Colin Dawson on: 0191 281 1234

admin@laurusassociates.co.uk

 

 

Missed Part 1 of our ‘protection’ series? Click here to read advice on key person insurance for the protection of your business continuity.

 

Get in touch and let us know what you thought of our new 2 part blog series!

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