Businesses will be affected by the changes to Statutory Sick Pay. The new rules ensure that employees who are paid less than the average will receive 80% of their income while they are sick. This means that organisations may face higher costs when their staff takes time off to be ill.
Managing sickness absence is now more important than ever for business owners and HR departments. Companies risk increased costs, decreased productivity and operational disruption if they don’t have the right systems. Effective absence management is crucial to keep costs in check and ensure a fair, transparent process for all employees.
How new statutory sick pay changes affect businesses
Prior to the changes, SSP was a fixed-cost for businesses. However, with the new changes, lower-paid workers will receive a higher percentage of their income. This means:
- Increased costs per absence of an employee– Employers need to budget more for sick pay.
- Small businesses are more financially stressed. Companies with small margins will be affected the most.
- Need for more accurate absence tracking– Maintaining a record of trends in sickness will be crucial to managing costs.
Why Absence Management has become more critical
Businesses must be proactive in tracking and managing employee absences, given the rising costs of sickness. Businesses can benefit from implementing an absence management system.
- Early detection of trends can help reduce unplanned absence.
- Updated sick pay regulations: Ensure compliance
- Identification of patterns of absence can help improve workforce planning
What Activ People HR can do to help
Activ People HR provides a solution to manage absences and costs. Our software offers:
- Automated Abroad Tracking– Monitor employee illness in real-time to ensure accurate records and compliance.
- Instant reporting & analytics – Identifying trends in absences, allowing HR teams to take early actions to manage rising costs.
- Employee Self-Service Portal– Staff can directly report illness, reducing the administrative workload for HR departments.
- Customisable Abroad Policies – Set and enforce tailored absence policy to align with the new legislation.
- Integration of Payroll Systems– Ensure correct SSP payment and avoid costly payroll errors.
Business Benefits of Effective Absence management
Businesses can benefit from a structured system of absence management by:
- Reducing financial losses– Managing sick leave in a proactive manner prevents unnecessary expenses.
- Improved operational efficiency– Less time spent by admin on manual tracking, payroll corrections and other administrative tasks.
- Improve employee well-being– A clear, fair and transparent absence policy will build trust and transparency.
- Maintain legal compliance– Avoid penalties by staying aligned to changing SSP regulations.
Businesses will face higher costs due to the new changes in Statutory Sick Pay. Absence management is therefore a priority. Companies can reduce financial risk, increase workforce efficiency and comply with changing regulations by adopting an automated and structured approach.
companies can manage sick leave with Activ People HR’s absence-management software. They can reduce costs while providing employees with the best possible support.
Want to know more about how we can assist your business in managing absence efficiently? Contact us today!
Impact of statutory sick pay changes on businesses originally appeared on Human Resources News.
