Research by the Institute for Public Policy Research (IPPR) has revealed that the hidden annual cost to employers due to staff sickness has surged by £30 billion since 2018. If you’re an employer, what can you do to mitigate the impact?According to the IPPR’s report titled Health Industry, Prosperous Economy, £25 billion of this increase is attributed to decreased productivity as employees continue to work while ill, while £5 billion is due to a rise in sick leave.The report highlights that the number of productivity days lost to presenteeism—working while unwell—has risen from 35 days in 2018 to 44 days. Additionally, employees now take an average of 6.7 sick days per year, up from 3.7 days in 2018.With 1 in 3 employers experiencing an increase in absence rates, there’s a serious financial implication. A look at the health issues behind absence tells us that they’ve remained broadly similar in recent years: the majority of short-term absences are due to minor illnesses. Long-term sickness is mostly a result of mental ill-health, musculoskeletal injuries, acute medical conditions and stress.Interestingly, the report finds that UK workers are among the least likely in OECD and European countries to take sick leave when ill, instead choosing to work through their sickness—but this stoic response is harming productivity, extending periods of illness for employees.What this means for employers“It’s a complex issue, with many contributing factors,” says Lauren Berkemeyer, VP of Marketing at YuLife, “but driving it are factors including a lack of job security, the flexibility to work in the hours rights for an individual, the financial need to work more hours, a lack of effective health and wellbeing support, and workplace culture.” This hypothesis is supported by data that further shows marginalised ethnic groups, employees in lower-income jobs, and those without formal qualifications being particularly prone to working despite poor health. Notably, Black and Asian employees are twice as likely as their white British counterparts to work while ill. This strongly indicates a motivator of financial stress: with any reduction in working hours correlating to a reduction in income. Dr. Jamie O’Halloran, senior research fellow at IPPR, emphasised the need for change, stating: “UK workers are too often pressured to work through illness, which harms their wellbeing and decreases productivity. This may result from poor workplace culture, inadequate management, financial insecurity, or a lack of understanding of long-term health conditions by employers.”Dr. O’Halloran added, “Our findings on the hidden productivity costs of working while sick should trigger a shift in approach. We should ensure that work benefits our health, that workers have time to recover when needed, and that businesses contribute to and benefit from public health. This approach will protect workers, increase profits, and drive growth.”The IPPR suggests regulating employers based on health outcomes, rather than just safety measures, and implementing mandatory reporting on employee health to help investors distinguish between health-promoting and health-damaging companies.Lauren at YuLife echoes these sentiments, urging collaboration between the government, businesses, and insurers to better support employers and employees in managing health-related challenges, thereby enhancing workforce productivity.“The data isn’t surprising, but hopefully acts as a prompt to business leaders to examine whether they have a problem and the root cause of it. Although many organisations have employee benefits and culture-supporting measures in place, it can be hard to get a measure of workplace culture within teams, employee engagement levels with benefits, and the true cause of staff illness.”Meet YuLifeAt YuLife, we work with businesses to create inclusive and holistic health and wellbeing programmes that focus on engagement and preventative health measures – as well as providing Group Health Insurance should the unexpected happen. To find out more about YuLife, check out our innovative approach to Group Life Insurance.