ProtectionJun 13 2017

Why group risk advisers need to identify presenteeism

  • To ascertain what presenteeism is.
  • To understand how it affects an advisers' employer clients.
  • To learn what sort of benefits group protection can offer corporate clients.
  • To ascertain what presenteeism is.
  • To understand how it affects an advisers' employer clients.
  • To learn what sort of benefits group protection can offer corporate clients.
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Why group risk advisers need to identify presenteeism

Very few of us are lucky enough to make our way through life without succumbing to illness every once in a while. We can all relate to the unpleasantness of the simplest tasks while fending off an infection, so why is the perception of such a lack of empathy so widespread in the context of work? 

Presenteeism is a dangerous trend for organisations. Working while ill means ‘empty’ hours are spent doing poor quality work, driving productivity down. It’s also self-perpetuating, particularly in more serious cases.

Instead of seeking appropriate help and support, focusing on recovering and returning to work ready to contribute in a meaningful fashion, the employee attempts to carry on working. They do not seek the treatment they need, which can make them even more unwell. 

Ultimately, the employee will reach breaking point and either leave the organisation – leading to high staff turnover, which will impact profitability, given that replacing an employee costs more than £30,000 on average  – or go on long-term sickness absence.

Cost of absence

This is a no less costly option for organisations. Statutory Sick Pay must be paid for up to 28 weeks, with many then offering further occupational sick pay as well. Further obligations to comply with the Equality Act 2010 await employers, who will need to proactively deal with employee absence with an eye to retaining the employee.

Given the disastrous effect presenteeism can have on a business, it provides a clear consulting opportunity for advisers who can emphasise the benefits of group risk products and their associated services.

Modern group income protection (GIP) products take a more holistic approach to health than their historical counterparts, with a phenomenal breadth of support available to employers and their most valuable asset day in and day out.

In its simplest form, GIP provides invaluable financial cover that ensures the vital costs of everyday living can still be met should an employee develop a serious illness or injury and no longer be able to work. This basic protection gives staff peace of mind and sends them the message that their employer cares about their health and wellbeing, and will support them in difficult times.

Image problem?

But there is so much more than the core benefit that advisers should be shouting about. GIP has an image problem, with employers and employees, which risks sending what should be the most important benefit employers provide for their staff into terminal decline.

According to Swiss Re’s most recent Group Watch report, while the number of people covered by GIP policies is up the number of policies in force has been dwindling for the past several years, indicating fewer businesses are buying the product.

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