The challenge of long-term sickness for SMEs

Rebecca Selwyn, Group Protection Propositions Lead (SME) for Aviva shares her thoughts on the challenges faced by SME’s in managing long-term sickness and how group income protection (GIP) can help.

In recent weeks the challenges facing employers and long-term absence has come into the spotlight. Data up to May 2024 provided by the Office for National Statistics (ONS) has revealed that 2.81 million people are economically inactive due to long-term sickness [1]. And the NHS waiting list rose to 7.57 million in April 2024, according to the latest figures from the health service [2]. Both illness and injury have the potential to turn into long term absence, proving challenging for employers, especially the 5.51 million SMEs (small and medium-sized enterprises) businesses in the UK [3].

Many SMEs (0 to 249 employees) are managed by a single or small team of owners and directors who have to perform various roles across the business from finance and procurement to legal and HR, often on top of the day job. This can mean the typical employee sickness and absence policies you’d expect to see in larger companies may not exist.
 

When an employee of a small business requires long term sickness leave, the situation can be stressful for both employer and employee. The employer is left wondering “How do I support my people financially and keep my business afloat? What support can/should I offer my employee while they’re off?  How do I help them return to work when they’re ready?” 
 

For employees it can be equally stressful for those directly and indirectly involved. If employees see a colleague not being supported in their time of need it can create a negative culture, or worst, poor retention rates with employees leaving. Both recruitment and training take valuable time and resources. Supporting employees when they’re unable to work can make it more likely they will remain loyal, return to work and share their positive experience. Bringing their valuable skills and knowledge back into the business. 
 

The solution all SMEs should know about

One of the easiest solutions for SME’s in addressing sickness absence challenges could be a group income protection policy (GIP). It supports both employers and employees. Following the deferred period, which is the amount of time between when the employee became unable to work and when the policy kicks in, a proportion of the employee's salary is paid should they be unable to work due to illness or injury. This means they can focus on getting better and the employer doesn't need to worry about covering all their salary.  It can also mean the option for the employer to be able to afford temporary cover whilst that employee’s recovering. 
 

But GIP isn’t just about the financial side. Aviva’s Early Intervention and Rehabilitation services mean employees are able to be supported throughout their difficult recovery period, and also during the often-challenging transition back into the workplace following serious illness or injury. This bespoke support enables employees to make a safe and sustainable return to the workplace, sometimes even before a claim commences, reducing any unnecessary time off and mitigating the risk of repeat absences occurring.
 

With Aviva’s Group Income Protection cover, members can also access a wide range of wellbeing services such as The Aviva DigiCare+ Workplace app, which includes digital GP appointments, mental health consultations, nutritional consultations, and the popular annual Health Check. Other services include fitness discounts and legal and bereavement support. All of this can help to create a healthier, happier workforce and help to reduce absence rates.  Wellbeing services are non-contractual benefits, that Aviva can change or withdraw at any time. To be eligible employees must be permanent residents of Great Britain, Northern Ireland, the Channel Islands or the Isle of Man. Terms apply.

Sources

[1] Office for National Statistics (ons.gov.uk) Employment in the UK up to May 2024.  Published July 2024. Contains public sector information licensed under the Open Government Licence v3.0

[2] NHS England News, NHS continues to face record demand for services. Published June 2024. Contains public sector information licensed under the Open Government Licence v3.0

[3] GOV.UK Department for Trade and Business, Population Estimates UK Regions 2023. Published October 2023. Contains public sector information licensed under the Open Government Licence v3.0