Guest blog by Jamie Sidaway, Head of Operations, Health 2 Employment
The Lancashire and Cumbria SME occupational health (OH) pilot aimed to encourage Small and Medium-Sized Enterprises (SMEs) to access OH services by offering up to 80% funding support for assessments, with businesses contributing the remaining 20%. The scheme was designed to demonstrate the value of OH to SMEs and assess the feasibility of a subsidised OH model. To be included on the Approved Provider list, providers had to demonstrate qualifications and experience, as well as our ability to meet key service criteria. Once approved, details were made available to eligible SMEs who had applied and proven their status. Key successes:
- Successfully engaged a number of SMEs.
- Collaborations with HR consultancies proved highly effective, as they had existing networks of SME clients.
- Continued to support SMEs even after the scheme ended, offering lower-cost assessments to those who narrowly missed the funding cut-off.
- Many SMEs who were previously sceptical about OH services or had never engaged with OH before have now continued using our services, demonstrating that the scheme had the potential to drive long-term behavioural change in SMEs regarding employee health and wellbeing.
The scheme was not extended though with the new Government with DWP citing lower-than-expected uptake as the reason. Key challenges were:
- Lack of marketing and SME awareness: Many SMEs were unaware of the scheme.
- Too many providers: The extensive Approved Provider list may have diluted individual providers' ability to secure business, creating potential concerns around price sharing and competition.
- Cumbersome voucher system: SMEs had to request a new voucher code for each assessment, adding an unnecessary administrative burden.
- Lack of clear differentiation between providers: SMEs had little guidance in choosing a provider, making it harder for them to make an informed decision.
Recommendations for future OH SME incentives:
- Longer Duration: A short-term pilot was insufficient to generate widespread SME engagement or prove impact. A minimum 12-month period is needed.
- Improved Marketing: Dedicated DWP-led promotion, alongside provider efforts, would ensure broader awareness among SMEs.
- Smaller, More Engaged Provider List: A more selective group of providers, incentivised with clear targets and engagement expectations, would improve uptake.
- Streamlined Access Process: Allowing providers to distribute voucher codes directly to SMEs would reduce administrative hurdles.
- Better Guidance for SMEs: More information on each provider’s unique services and specialisms would help SMEs make informed choices.
- Alternative Funding Model Considerations: Whether 80% subsidisation is the best approach remains debatable - other funding mechanisms should be explored.
A significant positive outcome was that many SMEs who previously would not have used OH services or were sceptical about their value have now continued engaging with OH One. This proves that with better execution, an incentive scheme like this can be highly effective in changing SME attitudes towards occupational health. We urge policymakers and stakeholders to revisit the concept, ensuring that SMEs continue to have opportunities to experience and appreciate the value of occupational health. With the right structure and commitment, such a scheme could make a substantial impact on SME workforce health and productivity.