The impact of workplace sickness on UK businesses has significantly escalated, revealing hidden costs.
- A report by IPPR shows a £30 billion rise in the annual cost of employee sickness since 2018.
- £25 billion of this increase is attributed to reduced productivity, and £5 billion to more sick days.
- UK workers often work through illness, exacerbating health issues and spreading sickness.
- Marginalised groups and those in low-quality jobs are disproportionately affected by this issue.
The recent analysis by IPPR highlights a dramatic increase in the financial burden of employee sickness on UK businesses, with costs rising by £30 billion since 2018. This surge is largely attributed to a £25 billion decrease in productivity, as employees spend fewer effective days at work. Only £5 billion of the increase is directly due to a rise in sick leave usage.
On average, employees lose 44 days of productivity annually by working through illness, a significant jump from the 35 days recorded in 2018. Additionally, the average sick leave taken has increased from 3.7 days to 6.7 days. Despite these figures, UK employees are less likely to take sick leave compared to their counterparts in OECD and European nations.
Perseverance through illness in the workplace often leads to prolonged recovery times and a higher risk of spreading illnesses, ultimately affecting business productivity and worker health negatively. This situation is exacerbated by poor workplace cultures, inadequate sick pay, and financial insecurity, driving individuals to work despite health challenges.
The issue is particularly acute among minority ethnic groups and individuals in lower-quality jobs. For instance, Black or Asian employees are statistically twice as likely to work through illness compared to white British employees, regardless of similar conditions.
The IPPR’s latest interim report advocates for a comprehensive approach to reversing these trends, proposing a pro-business health plan. This includes creating incentives for companies to improve workforce health, introducing a ‘do no harm’ duty for employers, and mandating health impact reporting for businesses. Such measures aim to shift the interaction between health and work from a vicious to a virtuous cycle.
Dr Jamie O’Halloran from IPPR asserts the importance of understanding the hidden productivity costs associated with working through sickness, stressing the need for supportive work environments. Similarly, Paul Devoy and Tina Woods highlight the direct link between workplace wellbeing and organizational performance. They emphasise the potential for economic growth facilitated by improved workforce health.
The rising cost of workplace sickness necessitates strategic changes to improve both business outcomes and employee wellbeing.
