More than three quarters of small businesses fear they will be unable to afford employee benefits in the future due to escalating healthcare costs, according to new research.
The findings, from the ‘Is the UK looking at a healthy future?’ report released by Healthplan provider HSA has found that 39% of respondents from companies with less than 250 employees think that stress has the biggest impact on workplace health.
Overwhelmingly, over three quarters of these companies also believe the NHS is not operating in a way that accommodates their needs.
Small companies are also put off by the expense of complementary therapies, such as physiotherapy and homeopathy, leaving many unwilling to invest. Around 30% of small businesses surveyed said they would be more likely to try out healthcare alternatives if the price was lower.
The report also found that almost two thirds of small business employers plan to invest in some form of private healthcare, such as medical insurance or health cash plans.
“Smaller companies tend to have tight budgets, yet sickness absence can have the biggest impact,” said Lee Nicholls, employer and brand manager at the HSA.
He added, “A perceived lack of support from the NHS means that 35% of small businesses believe they need to invest in private healthcare in the future in order to manage sickness absence.”
The HSA recommends that companies should take into account the healthcare needs of the entire workforce, and think about bringing in benefits that meet a variety of needs.
Nicholls commented, “When benefits are implemented as a package, they can be more affordable and easier to administer than when purchased separately.”
© Crimson Business Ltd. 2007
