Employees working through sickness is costing UK businesses billions, think tank says

Your country needs you – to take a day off.

Rising workplace sickness is costing UK businesses billions every year, a new report by Institute for Public Policy Research (IPPR) reveals. But most of this comes from employees working through illness.

New analysis from the think tank reveals the annual hidden cost of employees being sick has risen by £30bn since 2018, with £25bn coming from lower productivity as workers persevere through illness. A further £5bn is due to a rise in sick days.

The report describes the UK as the “literal sick man of Europe”. But not all Brits are impacted equally.

Working through poor health is more common among those from marginalised ethnic groups, people in lower quality jobs and workers lacking formal qualifications, explained Dr Jamie O’Halloran, senior research fellow at IPPR.

“Too often, UK workers are being pressured to work through sickness when that’s not appropriate – harming their wellbeing and reducing productivity,” he said.

“This can be because of a bad workplace culture, poor management, financial insecurity or just weak understanding of long-term conditions among UK employers.”

People who are Black or Asian are twice as likely to work through being sick compared to those who are white British, the report reveals.

Such workplace inequality is unacceptable, said Sheeraz Gulsher, founder of non-profit People Like Us.

“According to the ONS [Office for National Statistics], working professionals from almost every ethnic minority background are earning less than their white counterparts which undoubtedly has an impact on shorter term quality of living and in the longer term, will affect savings and pensions,” he said.

“Already on the backfoot, employees from ethnic backgrounds will feel compelled to come into work even when they aren’t fit to, to make ends meet and avoid falling further behind.”

Earlier this year, People Like Us revealed that workers from ethnically diverse groups are 38% more likely to be underpaid. More than a third – 34% – of professionals from racially diverse backgrounds said their salary won’t cover their mortgage, rent and energy bills (while 27% of those from white backgrounds said the same).

Employees under financial strain are more likely to force themselves to work through illness, Gulsher added – with dire consequences for their long-term health.

“Experiencing workplace burnout can have a profound impact on performance, self-confidence and stability,” he said.

“It’s important for workplaces to help foster an environment that centres wellbeing as it no doubt will help create a happier, more productive workforce which will reduce any losses to business in the longer term due to sickness.”

The IPPR has proposed a “bold, pro-business health plan” that clamps down on dodgy employers. They call on the government to offer a new tax incentive for companies that commit to significant improvements in the health of their workforce, and to introduce a ‘do no harm’ duty for employers.

Finally, they’re calling for compulsory reporting on worker health – modelled on climate emissions reporting – to help private investors differentiate between health-orientated and health-harming businesses.

“Our demonstration of a ‘hidden’ productivity costs of working through sickness should catalyse a change in approach,” said O’Halloran.

“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.”

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