UK law firms are wasting money by failing to keep a check on the cost of providing benefits to their employees. Research by Aon Consulting, which surveyed the top 25 law firms in the UK, found that employers in this sector could make a 60% cost saving on group income protection schemes without compromising the benefit provided to staff. Furthermore, the amount spent on private medical insurance could also be cut by around 8% to 10% by placing a £100 excess on the policy offered.
Group income protection safeguards an employee's income if they go on long-term sick leave. It is common for organisations in sectors outside the law to limit the amount of time income protection will be paid for, rather than agreeing for it to be paid until retirement.
However, according to Nicholas Clapp, senior consultant at Aon Consulting, it is unusual for firms in the legal sector to do this "because they don't want to be the first to break rank". If they did put such restrictions on the cover, the savings could be significant.
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