The escalating cost of workplace sickness in the UK has reached an astonishing £100 billion annually, a new report reveals. Workers taking more than six sick days a year have been cautioned about the mounting financial and productivity repercussions of increased illness in the workplace.
A comprehensive analysis conducted by the Institute for Public Policy Research (IPPR) highlights a significant surge in the financial burden of staff sickness and mental health in the workplace, which has escalated by £30 billion annually, reaching a staggering £103 billion in 2023. In comparison, the annual cost stood at £73 billion in 2018, illustrating a sharp increase over five years.
The IPPR’s findings, released on July 31, disclose that employees now lose an average of 44 days of productivity annually due to working while unwell, a rise from 35 days in 2018. Additionally, staff take an average of 6.7 days off due to sickness, up from 3.7 days five years ago.
Dr. Jamie O’Halloran, a senior research fellow at the IPPR, emphasizes the detrimental impact of pressuring employees to work through illness. “Too often, UK workers are being pressured to work through sickness when that’s not appropriate – harming their wellbeing and reducing productivity,” Dr. O’Halloran states. He attributes this trend to factors such as poor workplace culture, inadequate management, financial insecurity, and a lack of understanding of long-term health conditions among UK employers.
The report underscores the necessity for a paradigm shift in how the UK workplace health crisis is managed. “Our demonstration of a ‘hidden’ productivity cost of working through sickness should catalyse a change in approach,” Dr. O’Halloran asserts. He advocates for ensuring that work environments support employee health, allow adequate recovery time, and promote business practices that enhance population health. Such changes, he believes, would protect workers, boost profits, and drive economic growth.
Tina Woods, founder and chief executive of Business for Health, echoes these sentiments, highlighting the immense cost of employee sickness to businesses. “The cost of employee sickness to businesses is staggering, especially the productivity loss of people working through their sickness,” Woods remarks.
Kieron Boyle, chief executive of the Impact Investing Institute and IPPR commissioner, stresses the growing recognition of health as a vital asset in the business sector. “Businesses and investors increasingly see health as an asset, not a cost,” Boyle explains. He views the report as a strategic guide for businesses aiming to foster a healthy and prosperous economy.
The Workers Union Says…
“The IPPR’s superb in-depth report serves as a clarion call for UK employers to re-evaluate their approach to employee health and wellbeing. By fostering a supportive work environment and prioritizing health, businesses can mitigate the hidden costs of workplace sickness, enhance productivity, and contribute to a thriving economy.”
