The annual hidden cost to employers of staff sickness has increased by £30 billion since 2018, according to research by the Institute for Public Policy Research (IPPR).
Its Health industry, prosperous economy report found that £25 billion of the increase is down to lower productivity from people working through sickness, and £5 billion is from rising sick days.
The number of days’ productivity lost through presenteeism, or working while sick, has increased from 35 days in 2018 to 44 days. Employees lose a further 6.7 days a year if taking sick leave, up from 3.7 days in 2018.
The report also found that compared to Organisation for Economic Co-operation and Development (OECD) and European countries, UK employees are among the least likely to take sick days when ill and are more likely to continue working when sick, which can impact productivity costs.
Employees from marginalised ethnic groups, those in lower quality jobs or who lack formal qualifications are more likely to work through poor health. Black or Asian employees are twice as likely to work when sick compared to white British staff.
The IPPR has proposed a pro-business health plan to clamp down on organisations that harm health and scale up those that create good health.
The plan includes tax incentives for employers that commit to significant improvements in their employees’ health, including security, flexibility and pay.
It includes regulation of employers on health outcomes, not just safety input through a ‘do no harm’ duty; and also compulsory reporting on employee health to help private investors differentiate between health-orientated and health-harming businesses.
Dr Jamie O’Halloran, senior research fellow at IPPR, said: “Too often, UK workers are being pressured to work through sickness when that’s not appropriate: harming their wellbeing, and reducing productivity. This can be because of a bad workplace culture, poor management, financial insecurity or just weak understanding of long-term conditions among UK employers.
“Our demonstration of hidden productivity costs of working through sickness should catalyse a change in approach. We should strive to make sure the work we do is good for our health, that we have the time to recover when we need it, and to ensure businesses both contribute to and benefit from population health. This would protect workers, boost profits and deliver growth.”
Dan Crook, managing director for group protection at Canada Life, added: “As the report rightly outlines, the government, employers and insurers, like ourselves, all have a vital role to play in sustaining and improving the wellbeing of the UK’s workforce.
“We urge the government to work with businesses to explore what more can be done to support employers and employees to manage challenges relating to ill health, which will, in turn, boost workforce productivity.”
Karl Bennett, wellbeing director at Perkbox Vivup, and chair of the Employee Assistance Professionals Association (EAPA), said: “This data won't come as a shock to most businesses, but they may need to question fully whether they have an issue.
“Many businesses live in a world of blissful ignorance when it comes to employee wellbeing and this data shows that is a mistake. Not being aware of [their] organisational culture, how engaged [their] staff are, the reasons they are leaving or unwell are the key metrics which should be used regularly, not just as a barometer, but as an ongoing beacon regarding employees' wellbeing. Get this right and [their] staff will be happy, engaged and 'present' at work.”
