July 31, 2024 from The Guardian
The hidden cost of workplace sickness in the UK has skyrocketed to over £100 billion annually, driven largely by a significant rise in presenteeism—where employees work while unwell, leading to reduced productivity. A recent report by the Institute for Public Policy Research (IPPR) sheds light on this growing issue and the profound implications it has for both businesses and employees.
The Economic Impact of Sickness in the Workplace
The IPPR’s analysis reveals that the cost of workplace sickness has increased by £30 billion since 2018, reaching a staggering £103 billion in 2023. This increase is primarily attributed to a £25 billion rise in productivity losses, as more employees continue to work despite being ill. The remaining £5 billion is due to an increase in the number of sick days taken by employees.
On average, employees in the UK now lose the equivalent of 44 days of productivity annually due to working through sickness, up from 35 days in 2018. Additionally, workers take an average of 6.7 sick days per year, compared to 3.7 days five years ago.
The Role of Presenteeism
Presenteeism, the practice of attending work while sick, is a major contributor to the decline in workplace productivity. The IPPR report highlights that UK workers are among the least likely to take sick days compared to their counterparts in other OECD and European countries. Instead, they are more likely to show up for work even when unwell, leading to suboptimal performance and an increased likelihood of errors.
Dr. Jamie O’Halloran, a senior research fellow at the IPPR, emphasizes the detrimental effects of this trend: “Too often, UK workers are being pressured to work through sickness when that’s not appropriate—harming their wellbeing and reducing productivity. This can be because of a bad workplace culture, poor management, financial insecurity, or just weak understanding of long-term conditions among UK employers.”
The consequences of presenteeism extend beyond immediate productivity losses. Employees who work through illness may experience delayed recovery, a higher risk of more severe health issues, and the potential to spread infectious diseases to colleagues, further compounding the problem.
Health Inequities and Workplace Sickness
The report also highlights disparities in how presenteeism affects different groups of workers. Those from marginalized ethnic backgrounds, lower-quality jobs, or without formal qualifications are more likely to work through sickness. According to the IPPR, Black or Asian employees are twice as likely to continue working while sick compared to their white British counterparts.
Tina Woods, the founder and chief executive of Business for Health, calls the cost of employee sickness “staggering,” particularly in terms of productivity loss from people working through illness. This issue is not only detrimental to individual health but also poses a significant challenge to overall business performance.
A Call for Change
The IPPR report is the final interim report from the cross-party IPPR Commission on Health and Prosperity. It urges the UK government to take action by cracking down on businesses that harm employee health and incentivizing those that promote workforce well-being.
Kieron Boyle, chief executive of the Impact Investing Institute and an IPPR commissioner, underscores the importance of this approach: “Businesses and investors increasingly see health as an asset, not a cost. This report is a blueprint for their role in creating a healthy and prosperous economy for everyone.”
The Business Case for Mental Health Training
In a related study published in Plos One, mental health training for line managers was shown to improve business performance by reducing sickness absence and enhancing employee retention and recruitment. Prof. Holly Blake from the University of Nottingham, who led the study, noted, “Mental ill health at work is costly to organizations in terms of sickness absence and lost productivity. To our knowledge, this is the first study to show that training line managers in mental health is linked to better business outcomes.”
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