UK small to medium-sized businesses (SMEs) lose £29 billion annually due to sickness-related productivity drops, according to research by Unum UK.
The employee benefits provider’s survey of more than 2,000 organisations also found that 27% of SMEs and 47% of micro businesses reported having no wellbeing budget at all.
Almost three-fifths (58%) of SMEs said that current taxation policies actively hinder their ability to invest in employee wellbeing, and 66% would increase spending on wellbeing initiatives if stronger tax incentives were introduced.
Furthermore, 57% said a more supportive regulatory environment would encourage greater investment in employee wellbeing.
Meanwhile, just 6% of SMEs and 3% of micro businesses said that government guidance on their wellbeing responsibilities is clear.
Mark Till, chief executive officer at Unum UK, said: “SMEs losing £29 billion a year to sickness-related productivity drops should be a serious wake-up call and a clear opportunity for smarter policy. Ahead of the Autumn Budget and in light of the recent Keep Britain Working report, we are calling on government to step up by offering clearer guidance, introducing meaningful tax incentives and raising wellbeing standards. It’s time to remove the barriers and make it easier for SMEs to invest in their people.
“The Keep Britain Working review has reignited the conversation around productivity, workforce health and the critical role SMEs play in driving economic recovery. Now is the time to act and unlock greater investment in employee wellbeing. UK SMEs are under pressure: sickness absences are at their highest in 15 years, productivity is flatlining and budgets are tighter than ever. The appetite to invest in people is there, what’s missing is support. With the right policy framework, SMEs can unlock productivity and growth through better wellbeing investment.”
