Three-quarters (78%) of organisations have experienced increased absenteeism due to workforce long-term sickness, according to research from Barnett Waddingham.
The independent consultancy surveyed 301 HR directors and C-Suite business leaders in UK employers, finding that a third (34%) of respondents have seen a decline in productivity because of this issue.
While long-term health issues were observed across all age groups, 34% saw that they were most prominent among those aged 55-68. Organisations encountered additional challenges, including increased employee workloads (40%), a staff morale decline (35%), an increase in people-related risk (31%) and an employee wellbeing drop (29%).
Following this, 66% saw an increase in healthcare benefit provision costs, while 74% observed a decline in the wellbeing of their workforces.
Despite concerns, 70% reported feeling adequately prepared to manage the impacts of long-term sickness in the workforce, and 73% regarding an ageing workforce.
Below a third (31%) feel more flexible working arrangements would be helpful, 26% said improved healthcare benefits are essential, and 22% would like to see increased government focus on fixing the healthcare system and reducing NHS waiting lists, to alleviate the burden.
One-third (33%) said developing tailored wellbeing plans for different age groups is a strategic priority for their business, 34% are looking to increase access to physical health resources, and 35% want to invest in technologies to support remote healthcare.
Julia Turney, partner and head of platform and benefits at Barnett Waddingham, said: “Organisations are facing a critical risk to their organisation’s future if they don’t recognise and address these problems. If left unchecked, employers may soon be dealing with faltering productivity, dissatisfied employees, and even financial losses. The first step to addressing these issues should be understanding the scale of them. As an employer, it’s crucial to have an intimate understanding of a workforce to be able to assess the potential risks that it, and the business, faces. This is where collecting, analysing and drawing insights from data is essential.”
