A recent report by IPPR highlights the substantial financial burden on UK businesses due to rising employee sickness.
- Annual hidden costs have surged by £30 billion since 2018, mainly due to productivity losses.
- Workers lose an average of 44 productive days annually due to working while ill.
- Cultural and systemic issues pressure employees to work despite being sick, affecting recovery and spreading illness.
- Proposals aim to integrate health into business models, promoting a healthier workforce and boosting economic growth.
The IPPR report reveals that the annual hidden cost of employee sickness in the UK has increased by £30 billion since 2018, representing a significant financial burden on businesses. The majority of this increase, £25 billion, is attributed to decreased productivity rather than an upsurge in sick days themselves, which account for only £5 billion.
Employees are experiencing a decline in productivity, losing the equivalent of 44 days annually as they often continue to work while sick. This figure has risen from 35 days in 2018. Additionally, sick leave now averages 6.7 days per year, up from 3.7 days, reflecting a growing trend of presenteeism among the workforce.
UK workers are markedly less likely to take sick days compared to peers in OECD and European nations. The trend of working through illness, driven by factors like poor workplace culture and financial insecurity, exacerbates recovery time and can lead to further health issues, negatively impacting overall productivity. This phenomenon is especially prevalent among marginalized ethnic groups and those in lower-quality jobs.
According to the report, 74% of people polled believe that government intervention is necessary to better support employee health. IPPR has proposed a comprehensive plan that seeks to improve business practices in health, suggesting a need for regulation and incentives to ensure businesses contribute positively to workforce health.
Dr. Jamie O’Halloran from IPPR emphasized the hidden productivity costs associated with presenteeism. At the same time, various experts, including Paul Devoy and Tina Woods, suggest that promoting a positive workplace culture of well-being is crucial to enhancing productivity and sustaining business performance.
The proposals include tax incentives for companies investing in workforce health, a new regulatory duty of ‘do no harm,’ and compulsory health reporting metrics, aiming to differentiate between health-oriented and less health-conscious businesses. As noted by Kieron Boyle, these initiatives are envisioned as part of a broader strategy aligning with governmental goals to leverage investment for health-led economic growth.
Implementing proposed health-focused business strategies can drive economic growth while enhancing worker well-being and productivity.
