Protecting your assets
Of course, it pays to look after the health of your workforce. Aside from the moral and legal obligations of employers, a healthy workforce is a productive workforce. Absence through sickness costs UK businesses around £16bn, with an average cost of sickness calculated at £554 per employee, per year, and an average annual absence of 6.9 days per employee.
Employees are the most important asset to any company, which is why many employers are turning to health care cash plans as a way of looking after their employees. Cash plans are a type of insurance policy which pay individual employees tax free cash back towards everyday health care such as dental treatment, eye tests, glasses and contact lenses and physiotherapy.
A cash plan helps employees to afford health costs, as well as encouraging them to seek treatment and faster diagnosis so they can return to work quicker or prevent absence. Cash plans can also deliver significant benefits over Private Medical Insurance (PMI), not least because they are available at a fraction of the cost of PMI and the price isn’t based on an individual’s medical history.
Cash plans can offer significant savings compared to putting standalone provisions in place, giving staff access to a wide range of benefits under one roof – and because the premiums are classed as a business expense, they can reduce corporation tax too.