More than three out of four businesses say they have seen increased rates of absenteeism due to long-term health problems according to a new UK-wide survey.
Barnett Waddingham found that these problems were contributing to productivity issues, with more than a third (34 per cent) of businesses reporting that this was a problem.
The findings also reveal the challenges businesses face with supporting an increasingly ageing workforce, which is more susceptible to health issues and changing job demands.
The study found that while long-term health issues were observed across all age groups, a third (34 per cent) said that they were most prominent among those aged 55-68.
As a result businesses noted they had encountered additional challenges including increased employee workloads (40 per cent), a decline in staff morale (35 per cent), an increase in people-related risk (31 per cent) and a decline in overall employee wellbeing (29 per cent).
Business leaders also expressed their concerns over the impacts that an increasingly ageing workforce is having upon their businesses. Over a quarter (28 per cent) said they had been required to hire to fill skills gaps, 22 per cent have had to change their recruitment processes, while 18 per cent have had to increase training.
Furthermore, the combination of long-term sickness and ageing workforces mean businesses have faced increased people and cost-related risks. Most significantly, two-thirds (66 per cent) said they have seen an increase in healthcare benefit provision costs, while nearly three quarters (74 per cent) have observed a decline in the wellbeing of their workforces. Over half (57 per cent) have raised concerns about age discrimination/ ageism in their workforces, and a further three quarters (74 per cent) noted that older employees have been unable to grasp new technologies/ processes.
But when it comes to addressing these specific challenges, firms are split on what would be most beneficial to resolve them. Around a third (31 per cent) said that more flexible working arrangements would be helpful, while just over a quarter (26 per cent) said improved healthcare benefits are essential.
A fifth (22 per cent) however, would like to see increased government focus on fixing the healthcare system and reducing NHS waiting lists, to alleviate the burden on their business.
Businesses are also shown to be taking steps to alleviate these risks. A third (33 per cent) say developing tailored wellness plans for different age groups is a strategic priority for their business, and a similar number (34 per cent) are looking to increase access to physical health resources; while 35 per cent are also looking to invest in technologies to support remote healthcare.
Barnett Waddingham partner and head of platform and benefits Julia Turney says: “We’ve seen the headlines on long-term sickness and ageing workforces, and we now have the proof. Businesses are facing a critical risk to their organisation’s future if they don’t recognise and address these problems.
“These are serious and sensitive issues, impacting real everyday people, and they must be treated as such. If left unchecked, businesses may soon be dealing with faltering productivity, dissatisfied employees, and even financial losses.
“The first step to addressing these issues should be understanding the scale of them. As an employer, it’s crucial to have an intimate understanding of your workforce to be able to assess the potential risks that it, and your business, faces. And this is exactly where collecting, analysing and drawing insights from data is essential. What is the breakdown of age groups across the business? How many people are utilising healthcare benefits? How much is that costing us? These are all important questions that can be answered.
“Beyond what businesses can do themselves, there’s still an industry-wide problem that needs to be solved. Over nine million people are still classed as economically inactive, a large chunk of which is because of long-term illness.”
The study surveyed more than 300 HR Directors and C-suite business leaders in UK companies.
