How can employers discourage employees from working when they’re sick?

In recent years the topic of employees working while sick, often termed “presenteeism,” is receiving more industry and media attention. In 2023, the UK group risk insurance sector, which includes group life, income protection and critical illness insurance, hit a record payout of £2.5 billion. It highlights the critical role that employer-funded benefits are increasingly playing in supporting employees. Within this number sits the value provided by Group Income Protection (GIP) in delivering financial security and promoting a healthier workforce. GIP is designed to offer financial support to employees who are unable to work due to illness or injury and also offers rehabilitation programmes to enable employees to get back to work in full health.

The impact of presenteeism

Presenteeism can have negative outcomes for employees and employers alike. Typically they manifest themselves in three core areas:

1. Reduced Productivity: Sick employees are often less productive. It is widely reported that presenteeism can lead to significant drops in output and efficiency, impacting overall business performance.
2. Extended Recovery Time: Working while sick can prolong the recovery period, leading to longer-term health issues and potentially more extended absences in the future.
3. Mental Health Implications: Persistent presenteeism can lead to burnout and mental health issues, as employees feel pressured to attend work despite their health conditions.

So why do people do it?

A recent poll by HR software company MHR showed that 71% of employees admit to working while unwell due to the stigma associated with taking sick leave. According to the office for national statistics (ONS), UK workers took just 4.2 sick days in 2019, down 41% from 1993 when staff called in sick an average of 7.2 days a year. The stigma around ‘calling in sick’ can also lead to anxiety and other consequences such as not seeking treatment for medical problems, overwork and stress.

More than stigma though, employees can have a genuine feeling of missing out, be that on opportunities, promotions or pay rises. Fear that their career could be negatively affected can force people back into work sooner than is medically advisable. This lack of emotional security is something that companies can address through cultural change, where providing a process of support and reassurance can help people make the right decision regarding their health.

Clearly though emotional security is only a part of the story, fundamentally people need to feel financial security as well.

The role of Group Income Protection

In the UK, GIP plays a crucial role in addressing the challenges posed by presenteeism.

1. Financial Security: GIP provides employees with a percentage of their salary if they are unable to work for an extended period due to health reasons. This financial support reduces the pressure to return to work prematurely, allowing employees to recover fully before resuming their duties. One of the leading insurers, Unum, paid out a total of £366 million in claims last year alone.
2. Promoting Health and Well-being: Knowing that there is a safety net in place encourages employees to prioritise their health. This can lead to lower levels of presenteeism and, consequently, a healthier and more productive workforce.
3. Reducing Long-term Absence: By providing adequate financial support, GIP can help reduce the length of long-term absences. Employees are more likely to take the necessary time off to recover properly, leading to better long-term health outcomes and reduced overall absence rates.
4. Enhanced Employee Morale and Retention: Offering GIP can boost employee morale and loyalty. Employees are more likely to feel valued and supported by their employer, leading to higher job satisfaction and retention rates.

Going the extra mile

In the UK, statutory sick pay (SSP) provides some level of support for employees who are unable to work due to illness. However, SSP is often insufficient to cover an individual’s living expenses, especially for prolonged periods. This is where GIP becomes vital.

Employers in the UK are increasingly recognising the importance of providing GIP as part of their employee benefits package. By doing so, they are not just complying with legal requirement but demonstrating an additional commitment to their employees’ well-being.

Conclusion

Presenteeism is a complex issue that can have far-reaching consequences for both employees and employers. In the UK, the provision of Group Income Protection is a crucial strategy in mitigating presenteeism’s negative impacts. By offering financial security and promoting a healthier work environment, GIP helps ensure that employees can recover fully from illness or injury without the added stress of financial instability. Ultimately, this leads to a more resilient and productive workforce, benefiting both the individual and the employer.

Employers who invest in GIP demonstrate a proactive approach to employee welfare, fostering a culture of care and support that can significantly enhance organisational health and performance. This should ideally be included as a core benefit, along with group life cover, providing financial protection for staff.

If you would like to discuss this further, please contact the employee benefits team at Connor Broadley.

References:
Insurance business mag

Insurance business mag

Employment law review