Nearly 9 in 10 (88%) UK businesses are concerned about the impact of long-term employee sickness (taking more than 4 weeks off work*), according to research conducted among directors, business owners, and senior decision-makers by MetLife UK, a leading provider of employee benefits and protection. A similar proportion (86%) also express concern over short-term sick leave (taking less than 4 weeks off work).
MetLife UK’s Early Intervention: reduce absence, increase productivity, keep Britain working whitepaper in conjunction with Small Business and Consumer Champion, Liz Barclay, found that long-term sick leave is costing employers an average of £20,735 per employee per year, and short-term sickness costing £13,800 per employee per year. The calculations took into account the impact of the employee’s absence, the services offered to them, and other subsequent costs such as hiring temporary staff or the extra hours taken up by other employees.
Concerningly, one in seven (15%) businesses say they do not estimate how much they spend on short-term and long-term sickness per employee, meaning businesses could be spending more than they think on absenteeism.
The whitepaper examines how employers of all sizes are impacted by sickness absence, the ways to lessen its effects, and how small and medium businesses could benefit from Early Intervention, while prioritising workers’ interests. It found some of the biggest challenges for companies in the next 12 months include business performance (12%), employee retention (8%), and long-term sickness (6%), so it’s crucial that companies are prepared to overcome these and navigate the associated costs.
The whitepaper comes as the Government’s Keep Britain Working Review found that the number of working-age people who are economically inactive for health reasons has increased by 40% since 2019 – accounting for around three million people today – and is costing approximately £150 billion per year. These costs are also being shouldered by UK employers. It is also projected this will increase by 600,000 more people by 2030, which will only add to cost pressures among businesses.
Implementing effective policies such as GIP can provide support for employee health and wellbeing while also offering a cost-effective approach for employers to manage expenses related to sickness or ill-health.
Charlotte O’Brien, Head of Employee Benefits at MetLife UK, comments: “While the absolute priority is ensuring employees feel supported during moments of absence, whether short or long-term, without careful management this could prolong time away from work and could trigger more serious issues, higher costs, and greater business disruption.
“Sir Charlie Mayfield’s government review aims to cut the numbers of long-term sickness which calls for a lot more to be done through the workplace – which is where the benefits of preventative and early intervention tools are so important. Quick and targeted action enables employers to minimise time off, reduce the risk of long-term ill health, and ensure employees feel properly supported and cared for.”
Liz Barclay, Small Business and Consumer Champion and author of the whitepaper, commented: “I’ve spent decades working with businesses of all sizes. Sickness absence is surging, and as a small business owner, I know the impact it can have on productivity and profitability, as well as on the relationship with customers. For me, the most important people at the heart of the detriment, are skilled, experienced and are hugely valuable and valued employees – people with mortgages, rent and bills to pay. People who are becoming unwell and being unnecessarily lost from the workplace, when their preference would be better health and remaining in work earning their salary. Founders, owners and bosses owe it to their business and their employees to support them, as quickly as possible, back into the saddle.
“I am not simply replaying the problem statement we already know exists, it’s both the wake-up call and a rallying cry to UK businesses. The purpose of this whitepaper is to bring to the forefront a possible solution to help safeguard both workforce wellbeing and the bottom line.”
Majority of UK businesses express concern over rising sick leave, new report warns
