Over a third (36%) of employers directly funded support for employees with a new illness or injury on a case-by-case basis, according to research from GRiD.
This approach was flagged as problematic by the industry body for the group risk sector.
Katharine Moxham, spokesperson for GRiD, said: “Every employer naturally hopes their staff can return to work and full productivity as swiftly as possible following an absence.
“However, this is not always the reality. Employers risk incurring prolonged and potentially costly support obligations, often without a definitive endpoint if they fund support on a case-by-case basis.”
The research found issues with this method.
Employers might not know when staff have a problem, as some employees do not always disclose health issues.
The research also noted that costs can be high, with some firms paying hundreds of thousands of pounds in support.
It is also difficult to plan and budget for, as the number of cases changes each year and there is uncertainty about what happens when the budget runs out.
Another problem mentioned was the risk of employees getting different levels of support, which could lead to criticism or legal challenges.
When asked about when support is offered, a quarter (26%) of employers said they provided it after a set number of weeks’ absence, as written in company policy.
A fifth (20%) gave support from day one, and 19% after a set number of months.
Only 12% focused on preventative care to stop employees falling ill in the first place.
Preventative support will be part of the Government’s agenda.
The Keep Britain Working Review, led by Sir Charlie Mayfield, will look at this area, so businesses already offering preventative support could be ahead of new recommendations later in the year.
Options like group income protection will give employers ways to provide support that meets both staff and business needs.
Group income protection will help at the time of illness or injury and will also offer value through preventative measures and ongoing support.
Moxham added: “Employers should take a broad approach to employee support, recognising that preventative, immediate, and ongoing interventions are interconnected rather than isolated efforts.
“While these forms of support can be funded directly, taking advantage of the wide range of employee benefit options available is a more financially effective and comprehensive solution.
“Organisations that integrate support through employee benefits will also be better positioned to meet the needs of their staff and are likely to be better prepared for any policies or recommendations that arise from the Keep Britain Working Review.”