On April 6th, significant changes to Statutory Sick Pay (SSP) were implemented. New data* has revealed the financial and operational impact that HR expects to navigate as a result of the reforms – including eligibility for lower-paid workers and the removal of the three-day waiting period.
According to the research, the majority of HR professionals anticipate financial strain but don’t foresee SSP changes having an immediate effect on plans to recruit.
Alison Calvert, Senior HR consultant at WorkNest, said: “There are understandable concerns around an increase in short term absences with almost a third planning to review their approach to managing sickness absence. This will help businesses to manage costs and minimise disruption. Managing short-term and repeated absences can put significant strain on a business, particularly SMEs, so it’s important to know how to handle situations of repeated absences, especially if you find they are increasing due to the reforms.”
In a separate survey** over 700 HR professionals, businesses revealed that challenging absences they didn’t think were genuine was the most difficult aspect of managing staff attendance, and four in ten (42%) say they haven’t challenged an absence that they think was disingenuous because they don’t have the confidence to do so.
Impact on workforce planning
When asked if the new SSP regulations would impact their employee headcount or hiring plans, businesses reported:
- 35% stated the changes would have no impact on hiring plans
- 33% were uncertain, citing the need for more information
- 21% acknowledged financial strain but no direct effect on hiring
- 6% expected to reassess workforce structures
- 5% anticipated a reduction in planned hires
Concerns over brief absences
Another key concern for businesses is the removal of the three-day waiting period which could lead to increases in short-term absences. When asked if they expected the removal of a waiting period to cause an increase, businesses responded:
- 32% remained uncertain
- 25% expected a minimal increase in short-term absences
- 22% did not anticipate significant changes in short-term absences
- 13% predicted a noticeable rise
- 8% believed their existing policies would mitigate any impact
Changes to sickness absence policies
In response to SSP changes, many businesses are reviewing their approach to managing sickness absence. When asked about planned reviews of policies businesses said:
- 32% were uncertain about potential policy updates
- 29% were actively reviewing their approach to manage costs and disruption
- 18% stated their current policies are already robust and require no changes
- 13% planned to tighten existing policies
- 8% may seek guidance on best practices
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Surveys and data from from WorkNest
