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Health & Wellbeing

Employee absence costs impact more than half of UK employers – WTW

Mental health stayed the main concern, but musculoskeletal and other long-term conditions grew in importance, with 63% of organisations pointing to these as a key issue in 2025.

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Employee absence costs impact more than half of UK employers – WTW
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Employee absence has become a bigger challenge for UK businesses, with over half reporting higher costs due to absence or disability, according to the latest Absence Management Survey from WTW. 

Mental health stayed the main concern, but musculoskeletal and other long-term conditions grew in importance, with 63% of organisations pointing to these as a key issue in 2025, up from 51% in 2023. 

More than half saw a rise in long-term absence.

Employers are looking to align absence management with pay, benefits and wellbeing over the next two years, with 57% planning changes. 

Nearly half said they would boost wellbeing support. 

Cost management is also a priority, with 55% aiming to renegotiate benefit provider terms and 51% planning better claims reporting.

Charlotte Steventon-Kiy, absence management lead at WTW, said: “The rising number of days lost to absence and long-term ill-health is increasing cost pressures and operational challenges for employers. 

“Many are facing significant barriers, including inconsistent policy implementation and ineffective programmes.”

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“To reduce absence rates, control costs and build a healthier, more productive workforce, absence management in the UK needs to shift from a reactive process to a proactive, strategic function.”

Steventon-Kiy added: “This means building more resilient capabilities while placing greater emphasis on prevention and employee wellbeing.”

Manager training is the top focus area, with 59% of organisations planning targeted sessions on absence issues. 

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Improving employee understanding of policies and introducing better navigation tools were also named as priorities.

Gaby Joyner, head of employee experience, Europe, said: “By investing in wellbeing and the overall employee experience, organisations aim to reduce both the incidence and severity of absence and disability. 

“Programmes include mental health initiatives such as resilience training or on-site counselling, ergonomics interventions, and broader wellness campaigns focused on exercise and healthy lifestyles.”

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