In recent years, the cost of employee sickness has surged dramatically in the UK, now exceeding £100 billion annually, according to a new report by the Institute for Public Policy Research (IPPR). This staggering figure, up by £30 billion since 2018, underscores an urgent need to address the underlying health challenges plaguing the workforce. Much of this cost is attributed to “hidden” factors like presenteeism—where employees work while unwell, leading to reduced productivity and, ultimately, greater long-term health issues.

The Rising Cost of Sickness in the Workplace

The IPPR report, Healthy Industry, Prosperous Economy, reveals a troubling trend: UK employees are increasingly choosing to work through illness rather than take the necessary time off to recover. On average, UK workers lose the equivalent of 44 days of productivity each year due to working while sick—an alarming increase from 35 days in 2018. Alongside this, the average number of sick days taken has also risen, now standing at 6.7 days per year compared to 3.7 days in 2018.

This growing tendency to “push through” illness is not only detrimental to individual health but also poses a significant risk to workplace safety and productivity. Employees who work while unwell are more likely to make costly mistakes, cause accidents, and spread contagious illnesses to colleagues.

The Hidden Costs of Presenteeism

Presenteeism is a particularly insidious issue because it often goes unrecognized. Workers, fearing repercussions, frequently conceal the true extent of their health struggles from employers. This creates a cycle where employees’ health continues to deteriorate, exacerbating the problem and leading to longer recovery times, more frequent illnesses, and ultimately, higher costs for businesses.

Kris Ambler, Workforce Lead at the British Association for Counselling and Psychotherapy (BACP), highlights the serious risks associated with this trend. “Employees that continue to work when they shouldn’t put themselves and others at serious risk, increasing the likelihood of future health problems, costly errors, accidents, and injuries to themselves, coworkers, and the public,” Ambler warns.

The Role of Employers in Supporting Mental Health

Given the rising costs and risks associated with poor employee health, it is crucial for employers to take a proactive role in fostering healthier workplace cultures. This includes not only providing timely access to mental health resources, such as counselling services, but also addressing systemic workplace issues that contribute to stress and burnout—like unreasonable workloads, low pay, and unsafe working conditions.

Supporting mental health in the workplace should be seen as a key investment in the long-term success of a business. As the IPPR report suggests, with the right support, individuals with certain health conditions can thrive in their roles. However, when employees are pressured to work while ill—whether due to a toxic work environment, inadequate sick pay, or financial instability—they risk prolonging their recovery and diminishing overall productivity.

Proposed Measures for a Healthier Workforce

To address these challenges, the IPPR report proposes several measures, including:

• New Tax Incentives: Encouraging companies to improve their workforce’s health by offering tax incentives, with a particular focus on small and medium-sized enterprises (SMEs).
• ‘Do No Harm’ Obligation: Introducing a new obligation for employers to be accountable for health outcomes, not just safety measures.
• Mandatory Health Data Reporting: Requiring companies to report worker health data, similar to climate emissions reporting, to help private investors make informed decisions.

These measures reflect a growing recognition that health is an asset to businesses, not a cost. Investing in employee health not only enhances productivity and growth but also contributes to a fairer and more prosperous economy.

A Call to Action for Employers

As the cost of employee sickness continues to rise, UK employers must prioritize mental health and well-being in the workplace. By fostering a supportive environment and addressing the root causes of presenteeism and burnout, businesses can protect their workforce, enhance productivity, and contribute to a healthier, more prosperous economy for all.

OK Talk is here to help businesses address the factors that contribute to poor mental health in the workplace. In today’s challenging environment, it’s crucial for employers to recognize the importance of investing in their employees’ health and well-being. Now is the time to take meaningful action to create healthier, more resilient workplaces. If you’re looking for ways to support your team, OK Talk is ready to discuss how we can assist you in fostering a positive and supportive work environment. Let’s start the conversation on how to make your workplace a better place for everyone.