Annual Workplace Sickness Costs up by £30bn Since 2018

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• Annual Workplace Sickness Costs up by £30bn Since 2018

08 August 2024

A new report reveals the significant economic impact of presenteeism, where employees continue to work when unwell.  

 

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This could point to factors such as poor work culture, limited access to sick pay, and financial insecurity, according to the research. It also can slow down recovery time, increasing their risk of further sickness and spreading infectious illnesses to others.

Dr Jamie O’Halloran, Senior Research Fellow at IPPR, said: “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 Institute for Public Policy Research (IPPR) paper shows that workers in the UK are among the least likely to take sick days, but most likely to work through illness. This in turn affects productivity. Employees lose the equivalent of 44 days’ productivity on average due to working through sickness, up from 35 days in 2018, and lose a further 6.7 days taking sick leave, up from 3.7 days in 2018.

The IPPR suggests a new radial approach –  a transition to a health-led economy. 

 

Creating a ‘Do No Harm’ Worker Health Duty

 

A “do no harm” worker health duty would help regulate employers on health outcomes, not just safety inputs. With regulations and minimum standards, employers would be compelled to make changes to working environments and conditions to reduce poor health outcomes.

The IPPR says this could be based on the 2023 Consumer Duty by the Financial Conduct Authority, where “firms must deliver good outcomes for all retail customers”, by taking “all foreseeable steps to avoid harm”. 

 

Tax Incentives for Healthier Workplaces

 

The paper also floats the idea for a new tax incentive for companies that commit to significant improvements in the health of their workforce. It argues that the 2023 government consultation that explored how tax incentives can boost occupational health provision is a start, but not a full strategy:

“Occupational health is only one of the routes through which employers can support good health. There are numerous facets of job quality that will have demonstrable effects on individual health such as pay, voice, autonomy and work–life balance, among others. There is a role for the state to foster good work by providing incentives to encourage the uptake and spread of healthy workplace innovations and standards.”

Picture: a photograph of a clinical thermometer on a red background. Image Credit: Unsplash

Article written by Ella Tansley | Published 08 August 2024

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