What's Happening?
MetLife UK has released data indicating that long-term sickness costs UK employers an average of £20,735 per employee annually. This figure highlights the significant financial burden on businesses, with short-term sickness costing £13,800 per employee per year. The report reveals that 15% of businesses do not estimate their spending on sickness-related costs. Jonny Nicholls, VP of HR at Adecco UK and Ireland, emphasized the need for coordinated action involving government, employers, line managers, and healthcare providers to address this issue. Andrea Rowe, people director for BI Worldwide, suggested that tracking employee absence is crucial for identifying patterns and shaping strategies to tackle recurring problems. She advocated for a joined-up strategy prioritizing prevention, workload management, wellbeing, and proactive support.
Why It's Important?
The financial impact of long-term sickness on businesses is substantial, affecting productivity, innovation, team morale, and overall business success. Addressing this issue requires a comprehensive approach that includes early interventions, flexible working arrangements, and mental health support. HR professionals play a pivotal role in fostering a supportive culture and flexible work environment to help employees stay in or return to work safely. The findings underscore the importance of board-level conversations about the financial and cultural costs of absence, highlighting the need for clear communication, fair procedures, and timely care access.
What's Next?
Organizations are encouraged to adopt strategies that prioritize employee wellbeing and proactive support to reduce the risk of future absences. This includes training for people managers, health checks, and education workshops. HR departments should ensure that mental and physical health provisions are embedded in everyday workplace practices. The report suggests that businesses need to recognize the true impact of absence on productivity and innovation, and work collaboratively to address these challenges.
Beyond the Headlines
The report highlights a deeper, systemic issue within organizations regarding employee health and absence management. It suggests that businesses often underestimate the impact of absence on productivity and team morale. Addressing these challenges requires a cultural shift towards prioritizing employee wellbeing and proactive support, which can lead to improved business outcomes and employee satisfaction.
