Increased ‘presenteeism’ or working while ill was estimated to cost the UK economy £25 billion – but its workforce was among the least likely to take sick days globally.
This ‘hidden cost’ is due to lowered productivity when ill. The analysis by the Institute for Public Policy Research (IPPR) suggests that employees lose an average of 44 days’ productivity annually to presenteeism. This was up from 35 days in 2018.
The research found that the annual cost of employee sickness had risen by £30 billion since 2018. In April, former prime minister Rishi Sunak said a ‘sick note culture‘ was causing workers to take unnecessary time off. However, the IPPR research found that increasing sick days accounted for only £5 million of the total increase. The remaining £25 billion was due to presenteeism.
The IPPR said: ‘When compelled to work despite being ill – because of poor work culture, limited access to sick pay, financial insecurity or other factors – employees can slow their own recovery time, increase their risk of further sickness later, and spread infectious illnesses to others – all lowering productivity. This is bad for business and bad for workers.’
The think tank also revealed disparities in levels of presenteeism based on ethnicity. Black and Asian employees were found to be two times more likely than white employees to continue working while ill.
‘Health as an asset, not a cost’
The IPPR suggested several measures to improve the impact of ill-health on productivity. These include:
- Incentives – tax incentives for companies that prioritise improving the health of their workforce
- Regulation – a ‘do no harm’ duty for employers based on health outcomes
- Investment – compulsory reporting on worker health modelled on climate emission reporting.
Jamie O’Halloran is a senior research fellow at the IPPR. He said: ‘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.
‘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.’
IPPR commissioner Kieron Boyle added: ‘Businesses and investors increasingly see health as an asset, not a cost. This report is a blueprint for their role in creating a healthy and prosperous economy for everyone.
‘The ideas it contains would help mobilise billions of pounds of capital for healthier lives — providing an engine for the new government’s health mission aspiration to boost healthy life expectancy across the whole country.’
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