Category Archives: Employee Benefits

Employee Benefits, News, Pensions

Time to end pension tax relief inequality?

A Cardiff pension expert is calling for the government to review the UK’s pension tax relief system as concern about inequality in the current system is further highlighted in a recent study.

The report, commissioned by the Association of British Insurers (ABI) and conducted by the Pensions Policy Institute (PPI), found that basic rate taxpayers – over 80% of all taxpayers – only receive 26% of the tax relief on defined contribution (DC) payments, while those under the age of 40 receive just 27%.

Stuart Price, Partner and Actuary at Quantum Advisory, believes a reform of this outdated system is long overdue.

Presently, the Treasury provides 20% tax relief on pension savings for basic rate taxpayers, 40% for higher rate taxpayers, and 45% for additional rate taxpayers.

According to the PPI’s report, introducing a single flat rate (e.g. 30% for everyone) could increase the overall pensions tax relief for basic rate taxpayers from 26% to a more equitable 42%.

Stuart Price said: “A new, simplified, system would remove the complexity that plagues the current system, and moving to a single flat rate could also provide an additional boost in pension savings for the lower paid and younger generation who need it most.

“Moving to a flat rate of 30% would be broadly cost neutral for the Treasury and would provide additional savings for those who need it. However, given the financial uncertainties brought about by COVID-19, the Treasury might be inclined to move to 20% for all. While this would bring in an additional £10bn per annum of revenue to the Treasury, it would not help the lower paid and younger generation with their pension saving, which in my opinion needs to be addressed sooner rather than later or we risk having a generation that cannot afford to retire.”

Quantum Advisory, which has five offices across the UK, including Amersham, Birmingham, Bristol, Cardiff, and London, provides pension and employee benefits services to employers, scheme trustees and members.

 For more information about Quantum Advisory, please visit: https://quantumadvisory.co.uk/about-us/

Benefits, Coronavirus, Employee Benefits, FInance, HR News

Don’t overlook employees’ financial concerns during Covid-19

Covid-19 is putting a lot of pressure on many aspects of employees’ lives, and financial worries are often at the core. Whether managing with less money whilst furloughed, considering a big life change such as divorce as a result of self-isolation or just dealing with a financially uncertain time, not knowing where to begin with sorting finances are just some of the realities people are facing during the pandemic.

Brett Hill, distribution director at Towergate Health & Protection says:

“We have seen a spike in calls to employee assistance programmes (EAPs) during the Coronavirus outbreak, as staff seek real and practical support for challenges they are facing during the lockdown. It is important for employers to remember that EAPs don’t just offer support for emotional issues – they can be an excellent resource to support financial issues too. Money problems and mental health are often intricately linked, creating a vicious cycle of one feeding the other that can be difficult to break”.

It’s a major issue for businesses, as poor mental health costs the UK economy £74-£99 billion per year, with 1.5 million people experiencing both problem debt and mental health concerns at the same time. It is a costly conundrum for organisations and employees alike, so being able to access support – through an EAP for example – can provide a real solution to getting employees the support they need to break the cycle. With the pandemic placing additional stress on daily life, from finances to mental health, it’s important that employers support staff where they can during this challenging time – both emotionally and practically.

Everyone affected

It is a common misconception that financial hardship is the preserve of those on lower incomes. Pandemic or not, all income groups can be affected by financial worries. It can happen at any age too, from worrying about how to pay off university debts to affording retirement in a climate of falling stock markets and pension fund values. EAPs can support with financial planning – from budgeting and managing debt, to planning for retirement – helping employees through their financial situation regardless of age or income.

Addressing addiction

Financial problems may be as a result of addiction, such as online gambling, which may be worsening during lockdown. EAPs can support employees in tackling the financial side of their addiction, including offering advice to cut up credit cards, cancel overdraft features or tackle debts with the highest interest first. Where needed, EAPs may direct employees to more specialist support services and charities, who can provide tailored advice for their addiction.

Staff may feel too embarrassed to share information about their addiction with their employer, so EAPs can provide them with a confidential outlet to discuss their issues. Equally, erratic behaviour may be going unnoticed – due to working from home during isolation, with management not being able to witness changes in an office – so EAPs can continue to provide support in the background, helping employees work through their issues.

Tackling absence and productivity

Financial concerns can negatively impact productivity and absence rates at work, with employees struggling to concentrate or attend work due to the weight of their worries. EAPs can not only support employees in tackling their personal finances, helping to plan and in turn alleviate stress, but potentially improve productivity and absence rates as a result within businesses too.

Debt management

Employees who contact EAPs for support with their finances may be offered debt management to help them regain control. Setting a goal to be out of debt as soon as possible helps employees to work towards something – creating positivity in change and helping to reduce stress. Tracking expenditure, working out what must be paid (such as a mortgage) and what is a nice to have (for example, a new outfit) helps staff to clearly see how their money is being spent. This is an important step to working out budgets and setting an achievable savings plan – to either get out of debt or save for the future. EAPs can help employees through this process, getting them back in charge of their finances and managing associated stress more effectively.

Emotional impact

EAPs provide employees with fast access to professional counselling services, should emotional support be required as a result of financial problems. Concerns about not being able to provide for a family, make next month’s payments or anxiety around receiving bills in the post can be addressed. Managing finances is one aspect of the issue, but managing the emotional fallout is another.

During lockdown, employees may feel as though they have more opportunity to utilise an EAP, so employers should consider reminding staff how it can support them during the pandemic. As EAPs are often accessible 24/7 too, support can be provided at a time that suits them – as many may be struggling to juggle working from home, eldercare or childcare and home-schooling at once.

Brett Hill concludes: “Financial concerns are a common worry to keep employees awake at night. With the pressure that Coronavirus is adding as well, staff may benefit from an outlet where they can air their concerns confidentially. EAPs can be hugely beneficial for those struggling financially: potentially providing debt management, helping individuals to understand their current financial situation and budget accordingly. Employees need to remember that not only do EAPs provide emotional support, but also practical guidance – which is especially important when managing finances and debt. Taking action with financial health can significantly reduce stress, personally helping the individual whilst also creating a more supported and productive workforce.”

Benefits, Employee Benefits

Employers urged to use new Parental Bereavement Act to review all bereavement policies

The Parental Bereavement (Leave and Pay) Act 2018 coming into force this month (April 2020) is an opportunity for employers to ensure their bereavement policy also demonstrates compassion and sensitivity, according to RedArc. The new legal right to two weeks’ paid bereavement leave, to be called ‘Jack’s Law’, is a world first but RedArc warns that giving staff time off needs to be supplemented with emotional support too.

Christine Husbands, managing director, RedArc Nurses said:

“Although the paid parental bereavement leave has been significantly extended, it should be seen as the bare minimum provision, with employers able to play a much bigger part in supporting a bereaved member of staff through such a devastating event, not just in extended leave but emotional support too.”

The statistics

Around 7,500 child deaths, including around 3,000 stillbirths, occur in the UK every year and so the government estimates that this new entitlement will help to support around 10,000 parents each year.

The impact of bereavement on employees

The loss of a child will have a significant impact on an employee for a long period of time. Once the child’s funeral is over, an employee can feel the loss most keenly and so can feel isolated, lonely and become withdrawn and depressed. Employees often fear returning to work and facing colleagues, such a life-changing event inevitably brings a re-evaluation of priorities, a loss of confidence and self-esteem may mean employees start doubting their own ability – therefore increased sick leave and absence are not uncommon. The ability to concentrate, make decisions, meet deadlines and maintain performance can all be compromised for quite some time, and there can be higher incidences of job-related injuries and accidents.

The impact of bereavement on employers

The change in a colleague’s practical and emotional needs can have a knock-on effect on other employees, who are often at a loss as to how to respond when a colleague returns to work after bereavement. Over time they may also feel that accommodating the needs of a bereaved colleague places added pressure on them.

Unplanned absence can have a detrimental effect on productivity and therefore as well as being the right thing to do in line with an employer’s duty of care, providing appropriate support for a grieving employee makes good business sense too.

The solution

Support services are available directly or can be offered as an added-value service via a number of employee benefits, including employee assistance programmes, protection insurance (income protection, critical illness, life), private medical insurance and cashplans.

  • Bearing in mind the long-term and changing nature of grief, continuity and longevity of support is vital.
  • As everyone grieves differently, a bereavement policy needs to be tailored to meet the needs of each individual.
  • Third-party support is valued as it is provided independently from an employer, which means the employee is more likely to be uninhibited and so can get more benefit from the support.

As well as telephone and face-to-face counselling, other types of support include sharing reading materials, and signposting to self-help groups and charities.

Christine Husbands concluded:

“Losing a child is every parents’ worst nightmare. There is no prescribed or ‘right way’ to grieve which means bereavement can impact on an employee physically, emotionally and practically but employers can make themselves ‘bereavement-friendly’ by being prepared and being aware. Paid leave is the starting point and now that it’s become legislation, it is the bare minimum that employees will come to expect.

“Employers now have a great opportunity to demonstrate their care and sensitivity by also supporting the emotional wellbeing of grieving staff.”

Benefits, Employee Benefits

Financial and emotional support for employers and their staff during Covid-19

Benefits that provide financial and emotional support to employees when the worst happens are coming into their own right now.

With the new government directive to work from home where possible, and many employers looking at how to retain staff under new circumstances – such as with reduced hours or on furloughed pay – employers have a lot to consider in terms of managing their business and staff.

Some employee benefits are designed to provide financial and emotional support for staff who are absent through ill-health, or to dependants of employees that die, such as group risk benefits (employer-sponsored life assurance, income protection and critical illness). Indeed, nearly 2.5 million employees in the UK are covered by schemes that will provide financial support if they’re unable to work through illness, and over 9.5 million employees are covered by schemes that will pay out a lump sum to their dependants if they die while employed.

It’s easy to overlook the value of such benefits during times of normal working practice. However, during the current Covid-19 pandemic, many employers are now looking at the detail of such schemes to ensure they’re getting support for their staff and their business.

Mental health, serious illness and death

Many employees are dealing with stress and anxiety as a result of Covid-19. For some this will escalate and result in a need for professional help or prolonged time off work. Support can be found within group risk benefits which can offer fast-track access to professional mental-health support, or financial support for those unable to work.

The majority of people who have Covid-19 will recover. Sadly, others won’t survive, and if they have group life assurance their dependants will receive financial support.

Katharine Moxham, spokesperson for GRiD, the group risk industry body said,

‘Emotional and financial support is needed on an unprecedented scale right now, and it will be group risk benefits that employers will look to to provide it.

‘I’m very proud of how our industry steps up to the mark during times of need. Each employer’s arrangements will be specific to them, so it’s important they understand what’s covered within their own schemes, to make sure they’re getting all the support available for those dealing with the effects of Covid-19. If they haven’t already engaged with their advisers, now is the time.’

Employee Benefits, HR News, Wellbeing at Work

Work affects sleep affects work: employers can help break the cycle

Despite experts recommending we should have between seven to nine hours sleep each night, the average Briton gets just six hours and 19 minutes. Work-related reasons can contribute significantly to a disturbed slumber, but businesses can play an important role in helping employees meet their sleep quotas, and this World Sleep Day (13 March) provides the perfect opportunity.

Hectic work schedules and pressure to meet deadlines can exacerbate the sleeplessness issue, with businesses today not just experiencing ‘presenteeism’ but ‘leavism’ too – workers using evenings, weekends and annual leave to get work done outside of office hours, which can increase stress.

Brett Hill, distribution director at Towergate Health and Protection says, ‘We live in a constantly “on” society, where it’s increasingly normal for work to spill into our home lives. But this can have a negative impact on our ability to switch off and get a good night’s sleep. Businesses need to ensure that employees take complete breaks from work, to mentally and physically recuperate and be reenergised for the next working day.’

A continual lack of sleep can seriously affect health increasing the risk of obesity, heart disease and diabetes, so it’s important that it’s tackled to support wider physical health.

Exercise and diet are also key factors in getting a good night’s sleep. Tiredness can lead to making poor nutritional choices – opting for quick sugar fixes during a slump. And this time of year can be particularly tempting to sit on the sofa, watch TV and eat comfort food.

Onsite sleep-training workshops can help ensure staff have an outlet to discuss any sleep concerns they have. Cracking bad habits – such as bingeing on boxsets into the early hours, drinking alcohol ‘to take the edge off’ and browsing on a smartphone in bed – are just some of the areas that can be addressed to improve sleep.

Hill continues, ‘Organising nutrition talks at work, helping employees to learn about food that will encourage better sleep and vice versa, and facilitating group exercise can all go a long way to help employees establish healthier routines.’

Another important area to look at when addressing sleep is mental health. Having staff trained in mental health is a good way to ensure that employees who are struggling have someone to turn to within the business. Trained staff can point them in the right direction of services available; whether it be an employee assistance programme (EAP), private medical insurance (PMI) or discounted gym membership – employee benefits can help staff confront a range of issues that may keep them awake at night.

Hill concludes, ‘We’ve all felt the ramifications of a bad night’s sleep before; mood is negatively affected, productivity lowered, and tolerance levels tested. The good news is that there are plenty of things that employers can do to help staff achieve better sleep patterns – which can have a positive effect on them emotionally, physically and the business as a whole. From creating healthy work/life boundaries to signposting staff to additional support services available, good sleep needn’t be a distant dream.’

Benefits, Employee Benefits, News

One in ten Second Medical Opinions is for an employee’s child, according to RedArc Nurses

Second Medical Opinion (SMO) services accessed via healthcare, group risk and other insurance schemes, demonstrates the insurance provider’s duty of care to the customer and their family, and is highly valued according to RedArc nurses.

According to referral data from RedArc Nurses over a five-year period
 One in ten (10 per cent) of SMO cases is for a child.

 Mental health is the most common health condition referred for an SMO in under-18s (35% of SMOs for under 18s).

 In adults, orthopaedic conditions (28%) are the most common health concern for which an SMO is sought. Mental health (9%) is the next most common.

19% change in diagnosis
Following the SMO, 19 per cent saw a change in diagnosis, and therefore initial diagnosis was confirmed in over eighty per cent of cases. Of those whose diagnosis remained the same, nearly half, 46%, were recommended a change in medication or treatment.

Children
It can be particularly worrying dealing with the ill-health of a child, and having access to an SMO can be a great support, either providing peace of mind that the original diagnosis was correct, alternative options for treatment or medication, or a change in diagnosis. Equally important is that the family is supported throughout the process and beyond.

Mental health
As mental health moves up the agenda, it is expected that there would be an increase in referrals for support. However, from these stats, it’s clear that offering access to an SMO is also particularly valuable in cases of mental health. Those dealing with a mental health issue need very specific support to help navigate an SMO and cope with the long-term consequences.

Worries wider than the condition
Being able to offer customers and their families the opportunity to fully understand their condition and the options for treating it is hugely valued. However, once the treatment is underway, individuals then tend to be faced with a whole range of other questions about their future, their employment and their finances, not to mention the toll on individuals and families emotionally. So it’s important that the clinical diagnosis can be partnered with additional medical and emotional support from a health professional who can provide pre- and post-consultation advice and long-term support.

Having a professional third party on hand to listen and provide guidance on these non-core medical matters, including offering tailored mental health support, can be crucial in ensuring the individual has a positive state of mind during preparation for the appointment, as well as coming to terms with the outcome, treatment options and long-term impacts. And this is just as important for both the patient and their family or carer.

Post-consultation
It is not uncommon for the individual to also need further tests – privately or via the NHS – and a health professional can help navigate such routes and join up the dots. It’s also important they have the knowledge to suggest additional therapies to compliment a medical diagnosis to help with side-effects of treatment, such as acupuncture, reiki, reflexology, dietician, hypnotherapy and hyperbaric oxygen.

Availability
Insurers often include an SMO within their group or health insurance products – some will offer it on an ongoing basis, and for others it is available at point of claim. However, as one of many options within an insurance policy, the benefits and peace of mind that an SMO can bring is often not fully appreciated by customers, particularly the benefits of access to a health professional who can offer long-term support is not also provided alongside.

Christine Husbands, managing director for RedArc commented:

“We know that some insurers already offer an SMO and others have the good intention to follow suit, but the real value is in the support that’s offered pre- and post-SMO.

“An SMO service goes beyond customers’ usual expectations of an insurer, so can go a long way in improving engagement. But it’s important that it’s combined with access to a health professional that can support that person throughout the process and beyond, or that person can be left feeling very isolated, and that can undo all the goodwill.”

Employee Benefits, Health, Health and Safety, News

Comfort: top priority when choosing safety eyewear, reveals research

From research among over 500 UK companies, Specsavers Corporate Eyecare reveals that comfort is the overriding requirement for safety eyewear, in addition to protection.

Asked which features and benefits are the priorities when choosing prescription safety eyewear for employees, the majority, 57%, selected comfort. This was followed by the opportunity for employees to actually try on the glasses for comfort and fit, selected by 40%.

In a perhaps more surprising aspect of procurement requirements, aesthetics also featured heavily, with 30% of employers looking for availability of designs for both men and women, while 27% were concerned with style. A quarter (25%) of employers were interested in the brand of safety eyewear, which may be about fashion but may also be about reputation for safety and robustness.

Cost was a consideration for nearly a third of employers, with 29% stating this as a feature they consider when selecting safety eyewear.

Jim Lythgow, director of strategic alliances at Specsavers Corporate Eyecare said:

‘Of course protection is the major concern for safety eyewear, but it is also very important that safety glasses look and feel good. If they are comfortable, fit well and look stylish, then employees are far more likely to actually wear their eye protection.’

The ability to try on safety eyewear was the second most popular requirement, linked to the main criteria of comfort. It is possible to procure safety eyewear from a variety of sources, including online and paper catalogues. There is, however, no substitute for evaluating different frames in person. While the choice of safety glasses will be dictated to some extent by the setting and task, there is still often a wide range of options available to the employee, which can only be truly assessed in person. Professional one-to-one fitting advice is a vital part of the process.

Jim Lythgow concluded:

‘It is very positive that employers are aware of the many additional features and benefits of eye protection and that they understand the importance of comfort, fit, and even aesthetics. It is crucial that employees are happy with their safety eyewear, as this is half the battle in it being worn consistently.’

The figures:
In addition to protection, which other features and benefits do you look for when choosing prescription safety eyewear for your company’s employees?
• Comfort 57%
• Ability to try on for comfort and fit 40%
• Designs for men and women 30%
• Low price 29%
• Style 27%
• Brand 25%

To find out more about prescription safety eyewear, visit: www.specsavers.co.uk/corporate

Employee Benefits, Health

Lifestyle can affect cancer, yet one in three employers don’t offer support for the physical wellbeing of staff: research from GRiD

Research from GRiD, the industry body for the group risk industry shows that 34% of employers don’t offer any support for the physical wellbeing of staff. Changes to lifestyle can reduce the risk of cancer, so support for physical wellbeing can be an important way for employers to help their staff in terms of prevention.

Furthermore, only one in five (20%) employers offer initiatives to encourage staff to be more active to improve their health, and only 14% offer training on specific areas such as smoking-cessation, nutrition, fitness and lifestyle.

Supporting the physical wellbeing of staff is integral to full, holistic support of staff, and there are many ways that employers can do this. From encouraging lunchtime walks and standing meetings, to providing access to specialists to advise on nutrition and health.

Katharine Moxham, spokesperson for GRiD, says,

‘The options available for employers to support the physical wellbeing of staff are constantly being developed. We’ve seen some exciting initiatives in our own industry, from access to expert health professionals to wellness apps. The health and wellbeing industry is creative and we see tangible results in the workplaces of those employers that implement them.’

Support for physical health isn’t just about treatment, but about prevention and early intervention too, and it’s important that all are considered when employers are looking at how to support staff best. Programmes can be tailored to meet the specific needs of a workforce, taking into account age, gender or particular health concerns of a workforce demographic.

Moxham concluded,

‘Cancer is a leading cause of claim across all group risk products: employer-sponsored life assurance, income protection and critical illness, so we know just how much cancer affects employees and their companies. The financial support offered is fantastic at a time when people need it most, but it’s important that all the other support – both in terms of prevention and early intervention – are not overlooked: they play an incredibly important part in employers looking after the health and wellbeing of their staff.’

How employers look after the physical wellbeing of their staff:

  • If requested, we will arrange access to professional support such as seeing a specialist: 21%
  • Initiatives to encourage staff to be more active and to improve their health: 20%
  • Discounted gym membership: 18%
  • We have insurance in place to provide support, such as seeing a specialist (this might include private medical insurance or employer-sponsored income protection): 18%
  • We fund private healthcare treatment if necessary: 17%
  • Training on specific areas such as smoking-cessation, nutrition, fitness, lifestyle: 14%
  • Access to apps/technology to monitor and improve health and fitness: 11%
  • We provide free or discounted healthy eating: 11%
  • Cash plans: 9%
  • We don’t offer support for the physical wellbeing of staff: 34%