"Taken together, these challenges highlight that a case-by-case approach is not the most effective route for most organisations."
- Katharine Moxham - GRiD
According to new research from GRiD, the industry body for the group risk sector, almost 8 in 10 employers have directly funded employee support on a case-by-case basis when an employee was ill or injured.
GRiD warns that doing so comes with several risks. While spending may initially appear manageable, support for serious conditions, such as cancer, can quickly escalate into the tens or even hundreds of thousands of pounds for just one individual member of staff.
As these expenses are often unexpected, they can place pressure on an organisation, affecting budgets and ultimately impacting the bottom line. It could also lead to potential and unintended P11D implications for the employee.
A separate concern noted by GRiD is that once support has been provided to one employee, other employees may expect similar support, and not only can that further increase costs over time, but it may also expose the employer to a legal challenge for discrimination.
In addition, GRiD cites the challenge of ensuring employees receive the support most likely to deliver the best outcomes as quickly as possible, as support and rehabilitation often require a range of interventions, frequently incorporating both mental and physical health, delivered when needed and in a coordinated way.
GRiD says that when employees have access to timely, holistic support, they are more likely to have better health outcomes and less time off work.
"At first glance, directly funding support for an employee may seem like a good thing to do, but it can create a number of challenges for employers," Katharine Moxham, spokesperson for GRiD, said. "Costs can escalate rapidly, and maintaining fairness and consistency across the workforce can become difficult.
"Taken together, these challenges highlight that a case-by-case approach is not the most effective route for most organisations.
"A more structured solution, backed by clear processes, can help ensure employees receive appropriate support, while employers retain control over costs and maintain fairness across their workforce."
READ MORE: Zurich aims to reframe life insurance with new campaign
GRiD says that employee benefits, particularly group risk - employer-sponsored life assurance, income protection and critical illness cover - can play an important role in helping organisations manage these challenges.
In addition to providing financial protection, support can also incorporate physical and mental health, such as access to oncologists, second medical opinions, physio and counselling.
They also enable employers to manage their costs and treat employees consistently, with the support included at no extra cost to employers or staff.
"It is often surprising how many employers get caught out when trying to do the right thing," Katharine Moxham continued. "They step in to support employees during difficult circumstances, only to find the illness or injury requires a level of support far beyond what was anticipated.
"Employers should be recognised for their willingness to help staff at these crucial moments, but funding support on a case-by-case basis can create challenges for both the employee and the business."
