The numbers are stark: British businesses lost £103 billion to employee sickness in 2023 alone, marking a staggering £30 billion increase since 2018. This figure, revealed in a recent Institute for Public Policy Research (IPPR) report, should serve as a wake-up call for organisations across the country. But beyond the headline figures lies a complex web of interconnected challenges that HR and wellness professionals must navigate if organisations are to create healthier, more resilient workplaces.
The crisis is particularly acute in sectors dependent on seasonal peaks, such as retail and hospitality. Recent findings from the Retail Trust and AlixPartners’s first Retail People Index paint a concerning picture: 51% of UK retail employees are at risk of quitting their jobs, while 44% admit they’re likely to work while unwell during the crucial post-Christmas period. When businesses need their workforce most, they face a double whammy of absence and presenteeism.
When we dive into the research it’s clear that seasonal sniffles aren’t the main culprit for absence at any point in the year. The CIPD’s latest workplace wellbeing report identifies mental ill-health, musculoskeletal injuries, and stress as primary drivers of long-term absence. While minor illnesses still account for most short-term absences, the underlying trends point to deeper systemic issues in how we structure and manage work.
It’s not just staff absence that’s a concern. Last year the UK lost £25 billion from reduced productivity rather than direct absence, highlighting the impact presenteeism. When employees struggle with their health but continue to work the effects can be even more damaging than absence itself.
Peter Cheese, CEO of the CIPD, emphasises that no single factor is driving this crisis. Company culture plays a pivotal role, with many organisations still celebrating long hours and viewing time off as a sign of low commitment. This attitude persists despite overwhelming evidence that extended working hours diminish productivity rather than enhance it.
5 guiding principles
While a silver bullet solution doesn’t exist, and the context of an organisation will have a significant impact on how they approach sickness absence and presenteeism there are some guiding principles that apply to all organisations.
First, data must drive decision-making. Organisations need robust systems to track not just absence rates but patterns, causes, and correlations. This information helps identify peak absence periods and underlying triggers, enabling proactive rather than reactive interventions.
Data collection and analysis becomes exponentially more complex in larger organisations. With thousands of employees spread across multiple locations, departments, and shift patterns, identifying meaningful patterns in absence data can feel like searching for a needle in a haystack. Traditional paper-based systems or disconnected HR databases often mask crucial trends that could indicate underlying issues – whether they’re department-specific challenges, seasonal patterns, or cultural problems that need addressing. Without comprehensive, organisation-wide data, businesses risk missing early warning signs and implementing ineffective, one-size-fits-all solutions that fail to address root causes.
This data deficit can be particularly problematic when trying to identify clusters of absence that might indicate workplace stress, poor management, or environmental factors. For instance, a manufacturing company might struggle to spot that a particular shift pattern is leading to increased musculoskeletal issues, or a retail business might miss the correlation between high absence rates and specific store layouts or management styles. These blind spots can persist for years, continuously impacting both employee wellbeing and business performance.
Modern time and attendance software offers a powerful solution to these challenges. These systems can automatically capture and analyse absence patterns, flagging unusual trends and potential issues before they become critical problems. They can identify correlations between absence and various factors such as shift patterns, departments, seasons, or specific workplace events. This real-time insight enables HR teams to move from reactive absence management to proactive health and wellbeing initiatives. The best systems integrate with HR databases to provide a complete picture of employee wellbeing, combining absence data with other metrics like overtime, employee satisfaction scores, and performance indicators to build a comprehensive understanding of workforce health.
The second guiding principle is that culture change is challenging but essential. Our own research confirms that the UK’s endemic overtime culture contributes significantly to stress, burnout, and subsequent absence. Organisations must actively work to shift mindsets, from the c-suite down to the shop floor, away from celebrating overwork to promote sustainable working practices.
Third, flexibility is non-negotiable. When employees have greater control over their working patterns, they’re better equipped to balance professional responsibilities with personal needs. This doesn’t just apply to hybrid or remote work – it’s about creating frameworks that allow people to work in ways that support rather than compromise their health.
Fourth, as ever, managers are the lynch-pint to driving effective change. Invest in providing them with the technology, skills and confidence to set appropriate boundaries around overtime, recognise early warning signs of stress or illness, and support team members to maintain sustainable work patterns.
Related to this point, a fifth, prevention, not remedy must drive organisational health strategies. Since a cultural of overwork is the driving factor behind sickness absence in the UK this means ensuring staff work manageable hours.
Today, digital tools have a significant contribution to make to help track and manage absence, and support better working practices. This includes time and attendance systems that flag excessive overtime, help to plan and facilitate flexible working arrangements and reminds employees to take regular breaks and use their holiday allowance.
For any organisation looking to implement these guiding principles, communication is critical. Clear, consistently applied policies that employees understand, and trust ensure staff engage with time and attendance software as a positive tool that supports their wellbeing.
The £103 billion price tag on sickness absence should serve as a catalyst for change. However, the goal isn’t simply to reduce this figure – it’s to create workplaces where people can thrive, contribute their best, and maintain their health. This requires long-term commitment, strategic investment, and a fundamental shift in how we think about the relationship between work and wellbeing.
That journey begins with leaders recognising that employee health and business success are inextricably linked. The IPPR report’s reference to a “virtuous or vicious circle” between health and economic performance captures this relationship perfectly. Organisations that invest in employee wellbeing don’t just reduce absence costs – they create more resilient, productive, and sustainable businesses.
Simon Garrity
Simon Garrity is Senior Workforce management expert at Protime. Simon specialises in helping organisations use technology to improve productivity, commercial performance and employee wellbeing through technology. He is responsible for the UK business of Protime, a market leader in time registration, access control, visitor registration and personnel planning.
