UK Businesses Warn of Rising Costs Linked to Employee Sick Leave
MetLife UK report finds most employers concerned about increasing long-term and short-term sickness
A majority of UK businesses are concerned about the growing financial impact of employee sickness, according to new research by MetLife UK. The study found that 88% of business owners and senior decision makers are worried about long-term sickness, while 86% share similar concerns about short-term absence.
The whitepaper, Early Intervention: reduce absence, increase productivity, and keep Britain working, developed by MetLife UK in partnership with former UK Small Business Commissioner Liz Barclay, reveals that long-term absence is costing companies an average of £20,735 per employee each year. Short-term absence costs are estimated at £13,800 per employee annually.
One in seven businesses do not calculate the cost of sickness absence, suggesting that the total financial impact may be higher than reported.
The report examines how sickness absence affects organisations of all sizes and highlights early intervention strategies to manage costs and support employee wellbeing. Business performance (12%), employee retention (8%) and long-term sickness (6%) were cited as some of the key challenges companies expect to face in the coming year.
The Government’s Keep Britain Working Review shows that the number of people out of work for health reasons has increased by 40% since 2019, with around three million people now economically inactive. The cost to the UK economy is estimated at £150 billion annually and is expected to rise further by 2030.
Charlotte O’Brien, Head of Employee Benefits at MetLife UK, said: “While the absolute priority is ensuring employees feel supported during moments of absence, without careful management this could prolong time away from work and trigger higher costs and disruption. Quick and targeted action enables employers to minimise time off, reduce the risk of long-term ill health, and ensure employees feel properly supported.”
Liz Barclay, Small Business and Consumer Champion and author of the whitepaper, said: “Sickness absence is surging, and as a small business owner, I know the impact it can have on productivity and profitability. Skilled and experienced employees are being unnecessarily lost from the workplace when their preference would be better health and remaining in work. The purpose of this whitepaper is to highlight practical solutions to safeguard workforce wellbeing and protect business stability.”
MetLife’s findings underline the growing pressure on employers to address sickness absence and adopt early intervention measures to manage both the human and financial cost of workplace ill health.
More information can be found at https://www.metlife.com.
