Recent analysis from the Institute for Public Policy Research (IPPR) has revealed a staggering £30 billion rise in the cost of employee sickness to UK businesses since 2018. This significant increase is primarily attributed to presenteeism, where employees come to work while ill, resulting in reduced productivity. Of the total increase, £25 billion was due to lower productivity from sick workers, while the remaining £5 billion resulted from an increase in sick days taken.
Key statistics
UK workers now lose an average of 6.7 sick days per year, up from 3.7 days in 2018
Employees lose the equivalent of 44 days of productivity through presenteeism, an increase from 35 days in 2018.
The sickness absence rate rose to 2.6% in 2022, resulting in a record high of 185.6 million working days lost.
This is a significant increase from the pre-pandemic figure of 138.2 million working days lost in 2019.
Causes of increased sickness absence
Several factors contribute to the rise in sickness-related costs:
Mental health issues: Stress, depression, and anxiety account for a significant portion of absences, particularly among younger workers [3, 4]. According to Office for National Statistics’ (ONS) sickness absence data, 18 million works days are lost each year to poor mental health.
Musculoskeletal problems: Neck and back issues have seen a notable increase, possibly exacerbated by widespread remote working.
Respiratory conditions: According to the ONS, in 2022, these conditions were fourth most common reason for absence.
Long-term health conditions: The number of people economically inactive due to long-term sickness has reached a record high of 2.58 million.
Impact on businesses and the economy
The rise in sickness absence has far-reaching consequences for businesses and the broader economy:
Reduced productivity and delayed project timelines.
Increased pressure on remaining staff, potentially leading to further absences.
Contribution to ongoing skills shortages in certain sectors.
Shrinking workforce, with UK employment approximately 0.5% lower than before the Covid-19 pandemic (see RSM’s report - ‘The Real Economy: People Perspectives - redefining the workforce’)
Strategies for employers to mitigate costs
To address the rising costs associated with worker sickness, employers can implement several strategies:
Develop comprehensive sickness absence policies and conduct return-to-work interviews. During the pandemic, employers updated absence policies to ensure employees with Covid symptoms stayed home. These policies may not have been revised since, causing potential confusion. It's crucial to clarify when employees should stay home if unwell. While avoiding sick employees in the office is important, some might be overly cautious. Clear expectations are essential for all employers. Your policy should include details on how repeated absences will be addressed and the consequences for excessive or long-term absenteeism.
Implement wellbeing programs and mental health support initiatives. A positive work environment where employees feel valued boosts engagement and effectively reduces both presenteeism and absenteeism.
Offer flexible working arrangements and make reasonable adjustments for employees with health conditions. Many employers now find that offering flexible working builds a positive relationship with employees and generates goodwill without harming the business.
Invest in occupational health services and conduct regular health and safety assessments, including Display Screen Equipment (DSE) assessments for remote workers. This should cover home working as well as office working.
Provide training for managers on effectively managing sickness absence and supporting employee wellbeing. This should include training on how to conduct return to work interviews and how to record and monitor sickness absence. Remember, employee absence affects the entire team, so managers should ensure the absent employee's work is fairly distributed and consider safeguards like extended deadlines or temporary cover. Failing to do so can lead to more team members becoming sick due to excessive workloads, a common cause of mental health-related absences.
Additional considerations
The IPPR is calling for a transition to a "health-led economy," where employers play a more significant role in ensuring workplace health.
The UK government is considering measures to help more people with disabilities and health conditions enter and progress in work.
Employers should be aware of their obligations under the Equality Act 2010 regarding reasonable adjustments for employees with disabilities.
By implementing these strategies and staying informed about the latest developments in workplace health, businesses can work towards reducing the costs associated with worker sickness and improving overall productivity and employee wellbeing.
Further reading
This article was generated using HR Advisor, an AI tool designed to assist HR professionals with employment law. If you find the content helpful, please explore HR Advisor and sign up for a free trial to see how it can benefit your HR practices.
