Organisations need to address the rising problem of workplace sickness

by • News, Wellbeing

Rising levels of workplace sickness are costing UK businesses billions each year, according to a new report from the Institute for Public Policy ResearchRising levels of workplace sickness are costing UK businesses billions each year, according to a new report from the Institute for Public Policy Research (IPPR). The think tank’s analysis reveals that the annual hidden cost of employee sickness has surged by £30 billion since 2018. Of this increase, £25 billion is attributed to lower productivity from employees working while ill, with only £5 billion due to an increase in sick days.

The report highlights that UK workers, compared to their counterparts in other OECD and European countries, are among the least likely to take sick days but are most likely to work through illness. On average, employees lose the equivalent of 44 days of productivity annually due to working while sick, up from 35 days in 2018. Additionally, they take an average of 6.7 sick leave days, up from 3.7 days in 2018.

The IPPR’s findings suggest that the tendency to work through illness, driven by factors such as poor workplace culture, limited access to sick pay, and financial insecurity, not only hinders recovery but also spreads illness and further reduces productivity. This issue is more pronounced among marginalized ethnic groups, those in lower-quality jobs, and workers without formal qualifications.

The report, the final interim publication from the cross-party IPPR Commission on Health and Prosperity, argues that the current interaction between health and work in Britain is detrimental. Polling by YouGov for the think tank found that 74 percent of people believe the government should do more to support health in the workplace.

To address these issues, the IPPR proposes a comprehensive, pro-business health plan aimed at fostering a healthier work environment. This plan includes:

  • Incentives: Introducing a new tax incentive for companies that commit to significant health improvements for their workforce, particularly focusing on small and medium-sized enterprises (SMEs).
  • Regulation: Implementing a ‘do no harm’ duty for employers, regulating health outcomes rather than just safety measures.
  • Investment: Mandating new compulsory reporting on worker health, similar to climate emissions reporting, to help investors distinguish between health-oriented and health-harming businesses.