Employee sickness is costing small businesses in the UK £29bn a year, due to productivity drops, according to new research.
The survey, by insurers Unum, found that health and wellbeing remained “chronically underfunded” within the SME market.
This research comes a week after the Keep Britain Working Review, chaired by former John Lewis boss Sir Charlie Mayfield, called for employers to do more to support the health of their workforce, and recommended tax-incentives from government to support this.
The Unum survey found over a quarter (27 per cent) of SMEs and nearly half (47 per cent) of micro businesses have no wellbeing budget at all.
At the same time more than half of SMEs (58 per cent) said current taxation policies actively hinder their ability to invest in wellbeing initiatives, with two thirds (66 per cent) saying they would be more likely to invest in health-related benefits if stronger tax incentives were available.
Meanwhile 57 per cent of SMEs said a more supportive regulatory environment would encourage greater investment in employee wellbeing.
Unum CEO Mark Till says: “SMEs losing £29bn a year to sickness-related productivity drops should be a serious wake-up call and a clear opportunity for smarter policy.
“Ahead of the Autumn Budget and in light of the recent Keep Britain Working report, we are calling on government to step up by offering clearer guidance, introducing meaningful tax incentives and raising wellbeing standards. It’s time to remove the barriers and make it easier for SMEs to invest in their people.”
Till adds: “The Keep Britain Working review has reignited the conversation around productivity, workforce health and the critical role SMEs play in driving economic recovery.
“ Now is the time to act and unlock greater investment in employee wellbeing. UK SMEs are under pressure: sickness absences are at their highest in 15 years, productivity is flatlining and budgets are tighter than ever. The appetite to invest in people is there – what’s missing is support.”
