The rising tide of workplace sickness in the UK now costs over £100 billion annually, largely due to lost productivity caused by “staggering” levels of presenteeism, a new report reveals.
An analysis by the Institute for Public Policy Research (IPPR) shows that the cost of staff sickness has surged by £30 billion a year, reaching £103 billion in 2023, up from £73 billion in 2018. The bulk of this increase, £25 billion, stems from reduced productivity as employees work while ill, with the remaining £5 billion due to more sick days being taken.
On average, employees now lose 44 days of productivity per year due to working through sickness, compared to 35 days in 2018. Additionally, they take an average of 6.7 sick days, up from 3.7 days in 2018, according to the IPPR report.
UK workers are among the least likely to take sick days, especially when compared with other OECD and European countries, often choosing to work despite being unwell. This practice, known as presenteeism, significantly diminishes productivity as affected staff are less effective and more prone to errors.
Dr Jamie O’Halloran, senior research fellow at the IPPR, highlighted the detrimental impact of presenteeism, stating: “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.”
He added, “Our demonstration of a ‘hidden’ productivity cost of working through sickness should catalyse a change in approach. We should strive to make sure the work we do is good for our health, that we have the time to recover when we need it, and to ensure businesses both contribute to and benefit from population health. This would protect workers, boost profits and deliver growth.”
The report underscores that with adequate support and suitable job conditions, individuals with certain health conditions can thrive at work. However, when employees are compelled to work while ill, it hinders recovery, increases the risk of further illness, and can spread infectious diseases, all of which lower productivity.
Tina Woods, founder and chief executive of Business for Health, described the financial impact on businesses as “staggering,” particularly the productivity losses from presenteeism.
The IPPR also found that working through illness is more common among marginalised ethnic groups, those in lower-quality jobs, and employees without formal qualifications. Black or Asian employees are twice as likely to work while sick compared to their white British counterparts.
The study, part of the IPPR Commission on Health and Prosperity, urges the government to penalise businesses that harm employee health and to incentivise those that promote workforce wellbeing. Kieron Boyle, chief executive of the Impact Investing Institute and an IPPR commissioner, remarked that businesses and investors increasingly view health as an asset. “This report is a blueprint for their role in creating a healthy and prosperous economy for everyone,” he said.
A separate IPPR report previously identified long-term sickness as a “serious fiscal threat” to the UK, with 2.6 million people currently out of the labour market due to illness.
Additionally, recent research published in Plos One found that mental health training for line managers can save companies millions by reducing sick days. Organisations that provided such training saw better customer service, improved employee retention and recruitment, and decreased long-term sickness absence. Prof Holly Blake of the University of Nottingham, who led the study, emphasised the strategic business value of investing in mental health training for managers.
