Employee sickness is costing UK businesses an additional £30 billion annually since 2018, states a recent IPPR report. The primary driver of this increase is a £25 billion loss due to decreased productivity.
- On average, employees are losing 44 days of productivity annually by working while sick, a rise from 35 days in 2018.
- Sick leave has also increased, with employees now taking an average of 6.7 days off, up from 3.7 days in 2018.
- The UK workforce tends to work through illness more than their OECD and European counterparts, often due to financial pressures or inadequate sick pay.
- IPPR suggests a comprehensive health plan that incentivises employers to improve worker health, proposing new regulations and investments.
The recent report from the Institute for Public Policy Research (IPPR) reveals a significant rise in workplace sickness costs in the UK, amounting to an additional £30 billion annually compared to figures from 2018. This increase is primarily fuelled by a £25 billion productivity loss, as more employees work through illnesses rather than taking time off.
Analysis indicates that employees now lose an average of 44 days of productivity per year by working while unwell—a noticeable increase from the 35 days reported in 2018. Meanwhile, sick leave has expanded, with the average number of days taken increasing from 3.7 to 6.7 days. This data underscores a troubling trend of UK workers enduring ill-health rather than recuperating, leading to diminished output.
The reluctance to take sick leave among UK workers appears more pronounced compared to their counterparts in OECD and other European nations. Various factors, such as poor work culture, limited access to sick pay, and financial insecurity, compel employees to continue working despite health setbacks. This behaviour not only prolongs recovery but also poses a risk of spreading illnesses, exacerbating the productivity dilemma.
The findings from the IPPR’s report highlight discrepancies in how different demographic groups experience sickness at work. Notably, employees from marginalised ethnic groups, those in lower-quality jobs, and individuals without formal qualifications demonstrate a higher tendency to work through sickness, exacerbating existing inequalities.
To address these challenges, IPPR advocates for a pro-business health approach, integrating new tax incentives, regulations, and mandatory health reporting for businesses. Such measures aim to foster a healthier workforce and, consequently, a more prosperous economy. Incentivising improvements in employee well-being, particularly among SMEs, and instituting a ‘do no harm’ duty for employers could pave the way towards achieving these goals.
Adopting proactive health measures within the workplace is essential for enhancing productivity and economic growth, as underscored by the IPPR report.
