Leading Recruiter Responds to Soaring £100bn Cost of UK Staff Sickness

Recent analysis by the Institute for Public Policy Research (IPPR) reveals that the cost of workplace sickness in the UK soared to over £100bn in 2023. The findings represent a £30bn increase from 2018, when the annual cost stood at £73bn. Leading recruiter Gi Group says the strain on both staff and employers is reaching breaking point and processes must be put in place to protect both parties.

Following analysis of last year’s workplace sickness, that cost the UK economy over £100bn, recruitment and staffing leader Gi Group has called for more robust measure to help ease the financial strain on businesses while also protecting sick employees.

The IPPR’s report highlights a worrying trend for UK businesses, detailing how the growing cost of illness in the workforce is not only the result of more sick days being taken but also a direct consequence of reduced productivity. A further £25bn is being lost due to workers’ lower efficiency when they continue working while unwell, and an additional £5bn is lost from employees taking more sick days. Despite this, UK workers still take fewer sick days than their European counterparts, contributing to a culture of “presenteeism” where employees are pressured to work through illness.

Presenteeism has become a growing issue across UK industries, resulting in further financial strain as businesses unknowingly suffer from hidden productivity losses. The report emphasises that supporting employee health should be a key priority for UK businesses. As the IPPR notes, “better health is in UK businesses’ self-interest,” and companies that invest in health and wellbeing initiatives are more likely to see increased productivity, lower absenteeism, and improved morale.

Gi Group, one of the UK’s leading HR and recruitment specialists, is urging companies to take these findings seriously. Cindy Gunn, Group Head of People at Gi Group, expressed concern over the rising costs of workplace illness and the consequences of presenteeism:

“The surge in costs associated with workplace sickness is a wake-up call for UK businesses as it highlights the urgent need to foster healthier work environments. Supporting employee wellbeing is not just a matter of moral responsibility but also essential for safeguarding productivity. Investing in health initiatives and ensuring employees feel empowered to take necessary time off is a win-win for both staff and businesses.”

Gunn’s comments resonate with the wider sentiment shared by HR professionals and wellbeing experts, who stress that ignoring employee health can lead to both short-term and long-term financial losses. Many companies are being encouraged to implement comprehensive health strategies that include mental health support, flexible working options, and clear policies that allow employees to take sick leave without fear of repercussions.

In its analysis, the IPPR argues that creating a healthier workforce not only benefits employees but can transform the UK’s overall economic landscape. By addressing the high levels of presenteeism, UK businesses can reduce hidden costs, improve employee engagement, and ultimately contribute to a more sustainable economy. The report suggests that healthier employees are more productive, take fewer sick days, and are more likely to remain with their employers long term, reducing turnover and recruitment costs.

Gi Group is poised to help businesses tackle these challenges. As one of the leading recruitment agencies in the UK, Gi Group provides strategic HR solutions and consultancy to ensure businesses have access to the right talent and workplace practices to thrive. With the IPPR’s findings shedding light on the increasing financial burden of poor employee health, businesses have an opportunity to reflect on their current practices and make meaningful changes.

The challenge now for UK businesses is to prioritise health and wellbeing, addressing presenteeism at its core and fostering a culture that promotes taking time off when needed. As Gunn concludes:

“Ultimately, investing in employee health is an investment in the long-term success of a business. This isn’t just about reducing costs; it’s about creating a stronger, more resilient workforce for the future and a workplace that can support them.”