All business owners would like to employ the best people and offer their employees the best package they can.
Most small businesses are unable to compete against the larger corporate entities however, in the area of benefits offered to employees such as 12 months sick pay. Their financial structures and turnover would simply crack under the strain. Couple that with having to employ someone else to do the work whilst one of your employees are off ill and you are staring a real threat to your business in the face!
To compete in today’s workplace; small businesses need to look at alternative ways to offer these benefit packages to entice the best workers onto their team. An effective option for smaller businesses could be an Executive Income Protection plan.
State benefits go a little way to helping mitigate an individual’s financial pressures in the event of sickness but that’s it, it goes only a “little” way!
Executive Income Protection plans offer a potential solution. They are specifically designed for smaller businesses looking to offer key employees extended sick pay benefits.
An Executive Income Protection plan will pay a proportion of the employee’s salary to the business in the event that he is unable to work because of illness or injury.
‘It’s worth making the point that because the benefit is paid to the company rather than the individual, the business can decide how the benefit is used. They can pass it on tot the employee through their salary in the usual way, keep part or all of it and put it towards the cost of a temporary replacement.
These type of policies, as with most Income Protection policies can be tailored to suit individuals’ needs with deferment periods etc. but are usually subject to a maximum benefit of 75% of the individuals average salary in the previous 52 weeks, including any benefits in kind as reported in HM Revenue and Customs P11D and dividend payments.
Some policies may even include Hospitalisation Benefits at no extra cost.
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