Marvin OnumonuNearly nine in 10 (88%) businesses said they were worried about the impact of long-term employee sickness, according to research by MetLife UK.
A similar number (86%) also expressed concern about short-term sick leave.
The research found long-term sick leave cost employers an average of £20,735 per employee per year, while short-term sickness cost £13,800 per employee per year.
These figures included the impact of the employee’s absence, services offered to them, and costs like hiring temporary staff or extra hours taken on by other employees.
15% of businesses said they did not estimate how much they spend on short-term and long-term sickness per employee, meaning firms could be spending more than they realise.
Among the biggest challenges for companies over the next year were business performance (12%), employee retention (8%), and long-term sickness (6%).
The research found these issues will add to cost pressures, especially for small and medium businesses.
The report followed the Government’s Keep Britain Working Review, which found the number of working-age people out of work for health reasons had gone up by 40% since 2019, now reaching around three million.
Introducing measures like group income protection was identified as a way for employers to support staff health and manage sickness costs.
Charlotte O’Brien, head of employee benefits at MetLife UK, said: “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.”
Liz Barclay, small business and consumer champion and author of the whitepaper, said: “I’ve spent decades working with businesses of all sizes.
“Sickness absence is surging, and as a small business owner, I know the impact it can have on productivity and profitability, as well as on the relationship with customers.
“For me, the most important people at the heart of the detriment, are skilled, experienced and are hugely valuable and valued employees – people with mortgages, rent and bills to pay.”
Barclay added: “People who are becoming unwell and being unnecessarily lost from the workplace, when their preference would be better health and remaining in work earning their salary.
“Founders, owners and bosses owe it to their business and their employees to support them, as quickly as possible, back into the saddle.
“I am not simply replaying the problem statement we already know exists, it’s both the wake-up call and a rallying cry to UK businesses.”
She said: “The purpose of this whitepaper is to bring to the forefront a possible solution to help safeguard both workforce wellbeing and the bottom line.”
