More than half of UK organisations (55%) have reported experiencing difficulties due to the rising costs associated with employee absence or disability, according to research by Willis Towers Watson (WTW).
Its 2026 Absence management survey, which surveyed 141 UK employers, found mental health to be the continuing leading cause of concern for employers regarding employee absence. Concerns around musculoskeletal and other chronic conditions are also growing, with 63% of respondents identifying these as a key issue in 2025, up from 51% in 2023. More than half (55%) reported an increase in long-term absence and disability.
In response, 57% plan to integrate absence management more closely with pay, benefits and wellbeing over the next two years. Meanwhile, 46% will prioritise enhancing wellbeing support.
More than half (55%) plan to renegotiate terms or switch to better-value benefits providers, while 51% intend to enhance claims reporting by analysing trends as a key step in improving absence management. In addition, the use of condition-specific care pathways is expected to increase.
A top focus area to improve these difficulties is enhancing manager capability, with 59% planning targeted training on specific absence-related issues. Half (50%) will improve employee understanding of absence policies through clearer communication, and 45% will enhance navigation tools.
Charlotte Steventon-Kiy, absence management lead at WTW, said: “The rising number of days lost to absence and long-term ill-health is increasing cost pressures and operational challenges for employers. Many are facing significant barriers, including inconsistent policy implementation and ineffective programmes. To reduce absence rates, control costs and build a healthier, more productive workforce, absence management in the UK needs to shift from a reactive process to a proactive, strategic function. This means building more resilient capabilities while placing greater emphasis on prevention and employee wellbeing.”
Gaby Joyner, head of employee experience, Europe at WTW, added: “By investing in wellbeing and the overall employee experience, organisations aim to reduce both the incidence and severity of absence and disability. Programmes include mental health initiatives such as resilience training or on-site counselling, ergonomics interventions, and broader wellness campaigns focused on exercise and healthy lifestyles.”
