The vast majority of UK business are concerned about the impact of rising levels of absence and sickness in the workplace.
Research from MetLife UK found 88 per cent of directors, business owners and senior decision-makers expressed concerns abut the financial impact of long-term sickness, with 84 per cent also stating they were worried about short-term sickness trends.
A white paper published by Met Life 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.
It also found that one in seven (15 per cent) of businesses say they do not estimate how much they spend on short-term and long-term sickness per employee, suggesting that many businesses could be spending more than they are aware on absenteeism.
The whitepaper looks how employers of all sizes are impacted by sickness absence, as well as suggesting ways the ways to lessen its effects. This includes the potential benefits from early intervention, particularly for small and mediums businesses (SMEs).
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 per cent since 2019 and now account for around three million people today. It projects this will increase by 600,000 more people by 2030, which will only add to cost pressures among businesses.
MetLife UK says that implementing effective policies such as group income protection, 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.
MetLIfe UK head of employee benefits Charlotte O’Brien says: “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.”
