The annual cost of employee sickness has risen to 拢103 billion a year, a new report has revealed.

It鈥檚 an increase of 拢30 billion since 2018 and is mainly due to the country's escalating long-term health issues, says the Institute for Public Policy Research (IPPR)

The report emphasises that a significant portion of this cost comes from 'hidden' challenges, such as presenteeism and reduced productivity among employees.

Sick days

It also reveals that UK workers tend to avoid taking sick days and are more inclined than those in other European nations to continue working despite being unwell.

The Healthy Industry, Prosperous Economy report says that on average, UK employees now lose the equivalent of 44 days' worth of productivity by working through sickness, up from 35 days in 2018. Employees take an additional 6.7 sick days, an increase from 3.7 days in 2018.

Serious risk

Kris Ambler, our Workforce Lead, said: 鈥淭hese findings show a concerning trend, with the UK workforce facing extreme pressures and burnout. Employees that continue to work when they shouldn鈥檛 put themselves and others at serious risk, increasing the likelihood of future health problems, costly errors, accidents and injuries to themself, coworkers and the public.

鈥淲orryingly, we鈥檙e unlikely to understand the true extent of presenteeism as many workers, fearing reprisals, keep the extent of their difficulties hidden from employers.

Healthier workplace cultures

鈥淏y offering timely access to counselling services, employers can help employees manage their mental health effectively, reduce the need for time off and promote healthier workplace cultures. However, it鈥檚 not a panacea, supporting employee mental health and building resilience won鈥檛 address issues in the workplace, such as unreasonable workloads, low pay or unsafe working practices.鈥�

The report says that individuals with certain health conditions can thrive in suitable job roles with adequate support. However, when pressured to work while ill, due to factors like a negative work environment, limited sick pay, or financial instability, employees can prolong their recovery period, heighten the risk of future illnesses, and potentially transmit contagious diseases to others, thereby diminishing overall productivity.

Proposed measures

Proposed measures in the report include:

  • Introducing a new tax incentive for companies that demonstrate substantial enhancements in their workforce's health, encompassing aspects like job security, flexibility, and remuneration, with a focus on small and medium-sized enterprises (SMEs).
  • Implementing a new 'do no harm' obligation for employers to ensure they are held accountable for health outcomes, not just safety measures.
  • Mandating the reporting of worker health data, akin to climate emissions reporting, to assist private investors in making informed decisions.

Value of investing

Kris added: 鈥淲e fully support the IPPR Report proposals and restate our own calls for Government to provide incentives to help businesses support employees manage the challenges that contribute to mental ill health and, in turn, boost productivity and growth鈥�.

Kieron Boyle OBE and IPPR Commissioner said:

鈥淏usinesses and investors increasingly see health as an asset, not a cost. This report is a blueprint for their role in creating a healthy and prosperous economy for everyone. Just as private investment can help deliver big societal goals like net-zero, so it can support a transition to a health-led economy that is fairer, more prosperous and which works better for us all.鈥�

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