Respiratory infections cost UK businesses £44 Billion annually, report finds

A new report by the Office of Health Economics (OHE), funded by Pfizer, reveals that respiratory infections account for remarkable productivity losses in the UK, costing businesses £44 billion annually. This translates to an average of £852 per employee, highlighting the substantial impact of these illnesses on the economy.

The research looked at the prevalence of respiratory infections, particularly during the winter months, and their dual impact on both the NHS and the business sector. Despite their short-term nature, these illnesses significantly disrupt productivity, primarily due to presenteeism – when employees work while unwell, resulting in reduced productivity.

The Cost of Presenteeism and Absenteeism

The report finds that presenteeism contributes to 55% of the total productivity losses caused by respiratory infections, outweighing the cost of absenteeism. On average, employees lose over a working week each year due to these illnesses, with one day taken as absence and the remainder spent working at reduced capacity.

During days of presenteeism, employee productivity drops by 32%. Key areas affected include error rate and quality (29%), creativity (29%), decision-making (27%), and communication (26%) Some industries are disproportionately affected, with employees in public administration and defence reporting the longest durations of absenteeism and presenteeism caused by these illnesses.

Amanda Cole, Associate Director at OHE and co-author of the report, said that while much has been said about the effect of long term illnesses on productivity, the impact of short term illnesses is often underestimated.

“Our research shows that respiratory infections hit harder than you would think,” she said. “Short-term respiratory infections incur a substantive cost for employers and, in fact, employees working while ill causes more productivity loss than absence. We also know that these losses are disproportionately borne by women.”

A Need for Preventative Measures

The findings suggest that investments in preventative measures such as vaccines, improved hygiene, and social distancing could yield significant benefits for businesses. With many working adults ineligible for NHS-provided respiratory vaccines, employer-led vaccination programmes could play a crucial role in reducing the productivity losses associated with respiratory infections.

By addressing the issue of short-term illnesses more proactively, businesses can mitigate the substantial economic impact and improve overall workplace wellbeing.

Amanda Cole added, “The policy recommendations in the report – and, in particular, the emphasis on prevention, especially through workplace vaccination schemes – offer a solution both to improve overall employee health, but also to address health inequity within the workforce.”

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