HRreview Header

Employees should be auto-enrolled onto financial protection

-

  • Just one in five (20%) employers feel equipped to help employees back to work following illness
  • 43% of employers believe employees should be auto-enrolled onto a scheme that protects them financially in the event of long-term illness.

New research1 from Aviva reveals that just one in five (20%) employers feel equipped to offer their employees rehabilitation support following long-term illness. This comes at a time when the government is calling for employers to be at the centre of managing employees back to work following absence.

Nearly a quarter (22%) of employers say that they don’t have the resource or expertise to manage people back into the workplace effectively. 25% would worry that they’d have to carry on paying sick pay.

To help address this situation, a significant 43% of employers say that they think employees should be auto-enrolled onto a scheme that gives them financial protection in the event of long-term sickness absence. Around one in five (17%) employers say that they are already considering taking out group income protection.

 

HRreview Logo

Get our essential daily HR news and updates.

This field is for validation purposes and should be left unchanged.
Weekday HR updates. Unsubscribe anytime.
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

 

The research also reveals a worrying lack of awareness amongst employers regarding State support available to employees who are unable to work due to long-term illness.

Nearly two-thirds of employers (63%) admit that they don’t know how much benefit is paid through Employment and Support Allowance (ESA). Moreover, nearly three quarters (72%), didn’t know that people in the work related activity2 could find that their entitlement to ESA stops after a year if they are considered capable of returning to work. Just one in ten (11%) employers had reviewed their sick-pay arrangements following the welfare reform changes.

Employers were also unaware of the impact the new state benefits approach could have on employees with conditions such as cancer, MS and mental health issues, which can present different levels of severity at different times. This means that people with conditions such as these could find themselves in the work-related group and with limited financial support.

When the situation was explained, over a third (38%) of employers felt that it would be a good idea to have a different approach for different conditions. However, a quarter of employers (24%) recognised the potential impact this could have on their employees, saying that they’d worry that employees would be forced back into the workforce when they are not well enough to work. One in five (22%) felt that it would be very difficult to have the correct measures in place to decide whether a person is fit for work.
Steve Bridger, head of group risk, Aviva says:

“There is a concerning lack of awareness amongst employers about the State benefits relating to illness or injury. However, we’re encouraged to see that employers recognise the benefit of auto-enrolling employees onto a scheme that gives them financial protection if they are unable to work due to long-term illness and aids rehabilitation.

“At Aviva we’re working hard to uncover information gaps such as these and offer the right educational support and corporate benefit solutions to help employers address sickness absence, both now and in the future.”

Latest news

Middle East air disruption leaves UK staff stranded as employers weigh pay and absence decisions

Employers face complex decisions on pay, leave and remote working as travel disruption leaves British staff stranded in the Middle East.

Govt launches gender pay gap and menopause action plans to help women ‘thrive at work’

Employers are encouraged to publish action plans to reduce pay disparities and support staff experiencing menopause under new government measures.

Call for stronger professional standards to rebuild trust in jobs

Professional bodies call for stronger standards and Chartered status to improve trust, accountability and consistency across roles.

Modulr partners with HiBob to streamline payroll payments

Partnership integrates payments automation into payroll workflows to reduce manual processing and improve pay day reliability.
- Advertisement -

Jake Young: Strong workplace connections are the foundation of good leadership

Effective leaders are, understandably, viewed as key to organisational success. Good leaders are felt to improve employee engagement, productivity and retention.

AI reshapes finance jobs as entry-level roles come under pressure

Employers prioritise digital skills over traditional accounting as AI reshapes finance roles and raises concerns over entry-level opportunities.

Must read

Gerry O’Neill: Gender pay and the calculus of inequality

Recently, we were privileged to have Duncan Brown, from the Institute for Employment Studies, speak at one of our Curo Coffee & Comp events. The theme was around equal pay reporting and his talk was entitled ‘Addressing Unequal Pay: Opening Pandora’s Box.’ What was clear to all was that there is no doubt that when the lid is lifted off the Pandora’s Box that is gender pay next year many evils will fly out, but it is also true that hope will be left. There will be far reaching consequences but will they necessarily be detrimental?

Dr Andy Cope: Leadership – A Crisis of No-Confidence

Look around at the current crop of leaders and...
- Advertisement -

You might also likeRELATED
Recommended to you