How does employee sickness absence impact your business?

The impact sickness absence has on your business will likely vary depending on whether you have a small company with only a few staff or a larger one with multiple departments and teams. A large corporation may be more able to absorb the additional workload during an employee's absence, whereas a smaller one may not.

Sickness absence is a key concern for the UK economy in general, with the most recent statistics showing a rise in the absence rate. In 2022, 2.6% of working hours were lost to illness and injury, the highest since 2004, for a total of 185.6 million working days.

How can you support your sick staff in getting back to work?

The measures you take to get sick staff back to work will vary depending on your business and the nature of the illness. Your budget and access to appropriate support will influence the steps you take, as some approaches cost more than others and may require specialist advice.

Whatever process you adopt, it's wise to get advice from experts, such as your HR and occupational health teams, if you have them. Your solicitor and accountant can also advise on the suitability of your policies and procedures and the financial and tax implications of any paid provisions you introduce.

Here are a few ways to help your sick staff return to work.

Create a clear absence policy

A clear absence policy ensures everyone knows where they stand if a team member is off sick. Your sickness absence policy should include details of sick pay, the absence monitoring process, and reporting procedures. For example, for a short absence of less than a week, an employee may be able to self-certify. However, you can request a sick note if the absence extends into a few weeks.

When developing the policy, you must avoid discrimination that could result in a tribunal claim, so it's wise to consult HR and seek legal advice.

Keep in touch

Keeping in contact with an employee during their absence can help them feel supported and help you monitor their process. You can create a plan to provide certainty around the type and frequency of communication during a sickness absence. However, this should be employee-led. Some employees enjoy regular contact, while others may find it oppressive and feel under pressure to return to work when they're not ready. Ask whether they prefer a phone call, message or email. Positive contact can help support an employee returning to work and help both of you prepare appropriately.

Understand the reasons for the absence

The type of support you provide to a returning employee will likely vary depending on the nature of their illness or injury. Any employee who has been away from work for a while may need mental health support to help them readjust to the workplace environment. However, the need will likely be greater if they've been away due to work-related stress.

Keeping in touch with your employees lets you discuss the support they'll need and assess any risk factors that have led to their absence. While you should already have monitoring in place for known risks, such as noise-induced hearing loss, it's worth considering whether workloads or management styles have contributed to mental health issues. A sick note can also be a valuable source of information.

Create a supportive working environment

A supportive working environment helps an employee return to work and feel supported. Your company culture plays a significant role, but you can take practical steps to look after employees' well-being as they return to work. Train line managers to support employees returning to work and ensure they understand relevant policies. It's also a good idea to tailor your approach to suit an employee's individual circumstances. Some might be happy for their colleagues to know the reasons for their absence and be open to workplace conversations about it. Others may prefer to return to work without a fuss and prefer to keep the nature of their illness confidential.

However, you must consider keeping the team informed if an employee is returning to work on a phased return to work or modified duties, as this may impact their colleagues.

Provide financial support

Providing financial support to employees during their sick leave can reduce their stress levels. If they're off for a while, they won't have to worry about paying the bills. It also means they won't have to rush their return to work for financial reasons when they're not ready, which could lead to another absence later.

The type of financial support you provide to employees can also benefit your business by freeing up money so you can hire additional help. It can also cover some employers' expenses, such as pension or NI contributions.

Income protection insurance

A group income protection policy pays your employees an income if they can't work because of an illness or injury. The policy pays a percentage of their usual salary, and some will cover employer expenses such as pension or National Insurance contributions.

There's typically a deferred period between the start of an absence and when the policy pays out. You can set this to suit your budget. If an employee receives full pay at the beginning of an absence and then drops to statutory sick pay, you can set the deferred period so the policy starts paying when full pay ends.

Critical illness insurance

Critical illness insurance provides a lump sum if an employee is diagnosed with a serious illness. The policy terms and conditions will set out the illnesses it covers. This type of insurance can support employees during their absence and return to work as it can pay for mobility aids, specialist treatment or home adaptations to improve their quality of life.

Invest in health insurance

Employee health insurance helps your team access treatment quickly if needed and can shorten their absence if they're on an NHS waiting list. It also offers resources that can support them during their absence, such as a telephone health advice service and self-help resources. You can add extra services to your policy, including an Employee Assistance Program (EAP), which provides employees with confidential advice and can signpost them to additional help.

A business policy can also provide health checks and help you create workplace wellness initiatives to improve employees' health in the long term.

Mental health support

Being off sick for a while can be stressful, so mental health support helps even where the absence doesn't relate to a mental health issue. Core health insurance coverage typically includes 8-10 counselling sessions, and you can add an EAP for informal guidance, as we've mentioned. If needed, you can also extend your mental health coverage for additional counselling sessions and in-patient treatment.

Create a return-to-work plan

Creating a plan gives you and your employees certainty about the help or adaptations they need when returning to work and the contribution you can expect from them. Good communication and input from your occupational health team is key.

A phased return to work lets an employee gradually build up their hours or start with lighter duties. Their fit note should mention appropriate workloads and tasks to avoid. This can help you plan ways to cover their remaining responsibilities.

Consider flexible working options

You can tailor flexible work to suit an employee's needs as they return to the workplace. They may benefit from reduced hours or working from home as they adjust. If an employee can return to work but their recovery is incomplete, changing their working hours can help them avoid a busy commute or give them more time to get moving at the start of the day.

An employee with a mental health condition may prefer to be in the office during quieter times so you can shift their working day to suit.

Reasonable adjustments

The Disability Discrimination Act requires employers to consider reasonable adjustments to improve access for workers with disabilities. Some longer-term health issues may meet the definition of a disability, which means you must consider whether any adjustments will help your employee return to the workplace.

This may include steps we've already mentioned, such as flexible work or lighter duties. In some cases, a team member may need to move to a different role. Alternatively, they may need temporary adjustments as their recovery progresses. For example, an employee may only be able to walk short distances or need to use a mobility aid initially. You could provide a parking space so they can drive to work or have a shorter distance to walk when they arrive.

Get in touch

At Globacare, we help our clients find the best insurance products to provide high-quality benefits for their employees. If you'd like to learn more about how insurance policies can support your team during periods of ill health, contact us today for tailored advice.

Lydia Hopkins
Senior Broker

Lydia Hopkins

Lydia is one of our most experienced brokers, having been in the industry for over eight years. Knowledgeable in a variety of types of insurance, she can cover most bases for clients.

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