You’d think that if an employer had a benefits package to attract and retain employees, it would make sure people knew about it. In some quarters sickness provision is a closely guarded secret.
Bizarrely, one in four employers (25%) does not communicate sickness provision to their staff, and a handful (5%) admitted they offered no sickness provision but their employees might not be aware of this. The finding emerged from the Group Risk Employer Research (GRiD) study which was undertaken in October 2009 among a sample of 500 UK businesses.[1]
The suggestion that a significant number of UK employers routinely keep important details of their benefits package under wraps from staff flies in the face of the assumption that employee benefits form a key element of recruitment and retention strategy[2]. After all, along with meeting contractual obligations and ensuring business continuity, recruiting and motivating employees is seen as the prime reason for implementing a benefits package. So it is somewhat surprising that recent GRiD research among 500 UK employers reveals as many as one in four are not open about their sickness provision.
When asked to elaborate, 8% of businesses questioned had a policy in place but preferred to maintain secrecy about the details, 12% said they treated each case on its own merits and, worryingly, 5% said they had no provision at all – but that staff might not be aware of this.
Whereas pensions and private medical insurance feature prominently in job specifications, sickness provision like cover under a group income protection (GIP) policy often falls under the radar as it’s taboo for employees to raise the subject of sick leave – particularly during the recruitment process. In addition, from the employers’ perspective, sometimes benefits like GIP are put in place primarily to support business continuity so employers may not see the reason for communicating on this issue.
However, it is likely that a fear that absence rates would soar if details of a generous sickness policy were divulged is the key reason for an employer to withhold this information. There is, in fact, no evidence to suggest any such link but this concern still makes employers reluctant to communicate the true value of their benefits package.
Katharine Moxham from GRiD explains: ‘Far from encouraging absence, the whole premise of a modern group income protection (GIP) policy is on stepping in early to minimise absence and provide the support needed to get employees back to work in a timely manner. It’s for this reason that GIP is increasingly seen as a tool to enable employers to meet contractual obligations to rehabilitate employees with cover for absence seen as a bolt on benefit. But best results are achieved where there’s an open and trusting partnership between an employer and their workforce. By keeping details of benefits such as GIP under wraps, employers are missing a powerful opportunity to motivate personnel and foster self reliance. As best practice, employers should provide employees with information on company policy in the event of employee absence. We would also recommend communicating the existence of the rehabilitation support that comes with most GIP insurance policies.’
[1] Research was conducted by Lightspeed Research for Group Risk Development (GRiD). Alico, Aviva, BUPA, Canada Life, Enrich, Friends Provident, Legal & General, Munich Re, Portus, Swiss Re, Unum, Watson Wyatt and Zurich Corporate Risk sponsored the project.
[2] See ‘The Whole Story’ by Lisa Ruff in The People Bulletin, 2 July 2010 http://www.apbusinesscontacts.com/the-people-bulletin-pb_6/wholestory.aspx