Cash plans lessen the chill of a pay freeze

Workers across the country are this winter bracing themselves for the bleak prospect of pay cuts and freezes in 2010.

Up to 40,000 senior public sector workers and a further 700,000 middle-ranking civil servants will be affected by the pay freezes announced in the Chancellor's pre Budget report. Plans to put a 1% cap on public sector pay rises coupled with a 0.5% increase in National Insurance contributions and a cap on state contributions to public sector pension schemes have been met with an angry reaction from unions and trade bodies. The news comes as a shock to many people who have enjoyed increases based on higher inflation in recent years.

The Confederation of British Industry (CBI) has also hit out at the Government's propositions saying the moves will stifle job creation and growth as employers will also suffer from higher National Insurance contributions which are estimated to raise an extra £2.65 billion a year.

Peter Lauris, sales and marketing director at healthcare cash plan provider Medicash says they have seen a marked increase in requests for corporate plans from employers anxious to do all they can to look after their staff in the current climate: "Employers are under huge pressure to keep staff morale as high as possible. Slashing wages and enforcing pay freezes does precisely the opposite. Cash plans are an ideal way to demonstrate support for staff facing financial pressure as they provide a tangible, value for money employee benefit. Employees can quickly claim back the costs for everyday healthcare such as visits to the dentist or optician as well as hospital stays, consultancy and alternative therapies giving them real peace of mind."

Financial pressure inevitably leads to worry and stress and this can have a severe impact on individuals both at work and home. Productivity levels may drop as a result, as will morale and possibly loyalty, and employers may need to be prepared for an exodus of talent. Employers have a duty of care to protect the health and welfare of all employees whilst at work. Stress is one of the major problems employers must be aware of and having an effective support system in place is critical.

Medicash plans include telephone access to stress counseling and face to face sessions if required. The unique Best Doctors service also gives members access to an expert second medical opinion though a dedicated helpline where members can access advice from a panel of over 50,000 world leading physicians.

Any new expenditure an organisation commits to should be closely monitored to ensure a return on investment. To get the most from any healthcare benefit, employers need to encourage employees to use what is available to them. This can be done by promoting and educating the workforce on the benefits of maintaining a positive and preventative approach to health. In return an employer will have a cost effective solution which can be easily implemented across the entire workforce, together with healthy, happy and productive staff.