Workplace sickness in the UK has skyrocketed to a staggering £100 billion annually. This massive cost is driven by high levels of presenteeism and lost productivity.
A detailed report by the Institute for Public Policy Research (IPPR) sheds light on the alarming rise. The report uncovers the reasons behind the surge and its significant impact on both employees and businesses.
Rising Cost of Workplace Sickness
Workplace sickness in the UK now costs over £100 billion annually. This increase is mainly due to lost productivity from presenteeism, a new report reveals.
The Institute for Public Policy Research (IPPR) highlights that the cost of staff sickness surged by £30 billion a year. It reached £103 billion in 2023, up from £73 billion in 2018.
Impact of Presenteeism
A significant part of this rise, £25 billion, stems from reduced productivity as employees work while ill. The remaining £5 billion is due to more sick days being taken.
On average, employees now lose 44 days of productivity per year due to working through sickness, a sharp increase from 35 days in 2018.
Additionally, workers take an average of 6.7 sick days, up from 3.7 days in 2018, according to the IPPR report.
Comparisons to Other Countries
UK workers are among the least likely to take sick days compared to other OECD and European countries. They often choose to work despite being unwell.
This practice, known as presenteeism, significantly reduces productivity as affected staff are less effective and more prone to errors.
Expert Opinions
Dr Jamie O’Halloran, senior research fellow at the IPPR, highlighted the harmful impact of presenteeism. He stated, “Too often, UK workers are being pressured to work through sickness when that’s not appropriate – harming their wellbeing and reducing productivity.”
He added, “Our demonstration of a ‘hidden’ productivity cost of working through sickness should catalyse a change in approach.”
Dr O’Halloran believes that prioritising health at work would protect workers, boost profits, and deliver growth.
Effects on Employee Health
The report emphasises that with adequate support and suitable job conditions, individuals with certain health conditions can thrive at work.
However, when employees work while ill, it hinders recovery, increases the risk of further illness, and can spread infectious diseases.
All these factors lower productivity even more, causing further financial losses for businesses.
Financial Impact on Businesses
Tina Woods, founder and chief executive of Business for Health, described the financial impact on businesses as “staggering”, particularly the productivity losses from presenteeism.
The IPPR also found that working through illness is more common among marginalised ethnic groups, those in lower-quality jobs, and employees without formal qualifications.
Marginalised Groups
Black or Asian employees are twice as likely to work while sick compared to their white British counterparts.
This disparity indicates that certain groups face more pressure to work while unwell, increasing the negative impact on their health and productivity.
The study urges the government to penalise businesses that harm employee health and incentivise those that promote workforce wellbeing.
Role of Businesses and Investors
Kieron Boyle, chief executive of the Impact Investing Institute, noted that businesses and investors increasingly view health as an asset. “This report is a blueprint for their role in creating a healthy and prosperous economy for everyone,” he said.
A separate IPPR report previously identified long-term sickness as a “serious fiscal threat” to the UK.
2.6 million people are currently out of the labour market due to illness, exacerbating the issue.
Solutions through Training
Recent research published in Plos One found that mental health training for line managers can save companies millions by reducing sick days.
Organisations providing such training saw better customer service, improved employee retention and recruitment, and decreased long-term sickness absence.
Prof Holly Blake of the University of Nottingham, who led the study, emphasised the strategic business value of investing in mental health training for managers.
Calls for Policy Change
The IPPR report urges the government to implement policies that support employee health and penalise businesses that contribute to poor health outcomes.
Improving workplace conditions and offering better support can help reduce the financial burden of workplace sickness on the UK economy.
In conclusion, the rising cost of workplace sickness in the UK is a substantial financial burden. The report highlights the critical need to address presenteeism and improve worker health.
Prioritising mental health training, better workplace conditions, and supportive policies can mitigate these costs. It benefits both employees and businesses.
Implementing these changes can lead to a healthier, more productive workforce and a stronger economy.