Employee absence is placing growing financial and operational pressure on UK organisations, with more than half of employers reporting that rising absence and disability costs are now a significant challenge.
The latest Absence Management Survey from WTW, a global advisory and broking firm that works with employers on risk, benefits and people strategy, shows that 55 percent of organisations are experiencing difficulties linked to the cost of absence. It reveals a workplace landscape where health, wellbeing and workforce planning are becoming more closely connected.
Employers are increasingly confronting longer periods of ill health among staff, alongside the knock-on effects on productivity, morale and service delivery.
Long Term and Chronic Conditions on the Rise
Mental health remains the leading cause of concern for employers in relation to absence. But the survey indicates that other health issues are becoming more prominent. Musculoskeletal and chronic conditions were identified as a key issue by 63 percent of organisations in 2025, compared with 51 percent two years earlier.
More than half of employers said they had seen an increase in long term absence and disability. Longer recovery periods, delayed treatment and complex health needs are all contributing to extended time away from work.
This change is prompting many organisations to review whether existing support systems are still fit for purpose. Traditional approaches that focus mainly on recording absence are giving way to broader strategies that look at prevention, early support and rehabilitation.
Absence Management Moves Closer to Wellbeing Strategy
The survey suggests that absence management is no longer being treated as a standalone process. Instead, employers are linking it more closely to pay, benefits and wellbeing.
Over the next two years, 57 percent of organisations plan to integrate absence management more closely with wider people strategies, while 46 percent will prioritise stronger wellbeing support.
This reflects a growing recognition that absence is often linked to underlying issues such as stress, workload, caring responsibilities and long term health conditions. Addressing these drivers can reduce repeat absence and improve retention.
Many employers are also looking at how benefits such as occupational health, employee assistance programmes and medical support can be used more effectively to keep people in work where possible.
Cost Pressures Drive Reviews of Providers and Processes
Alongside wellbeing concerns, financial pressure remains a major factor. More than half of employers said they plan to renegotiate terms or move to better value benefit providers as absence related expenses continue to rise.
Just over half intend to strengthen claims reporting and analyse absence trends more closely. Condition specific care pathways, where employees are directed to targeted clinical or therapeutic support, are also expected to become more common.
For employers, better data is seen as a way to spot patterns early. Repeated short term absence, stress related leave or injury clusters in particular roles can signal wider workplace issues.
Employers Urged to Take a Proactive Approach
Charlotte Steventon Kiy, Absence Management Lead at WTW, said employers were feeling the impact of rising absence both financially and operationally.
“The rising number of days lost to absence and long-term ill-health is increasing cost pressures and operational challenges for employers. Many are facing significant barriers, including inconsistent policy implementation and ineffective programmes,” she said.
She argued that a more forward looking model was needed.
“To reduce absence rates, control costs and build a healthier, more productive workforce, absence management in the UK needs to shift from a reactive process to a proactive, strategic function. This means building more resilient capabilities while placing greater emphasis on prevention and employee wellbeing.”
Manager Capability and Communication in Focus
The survey highlights the role of line managers in shaping absence outcomes. Targeted training on absence related issues is the top improvement priority, with 59 percent of employers planning further development in this area.
Clearer communication is also a focus. Half of organisations aim to improve how absence policies are explained so employees understand what support is available and what is expected. Many are also introducing navigation tools that help staff access the right help more quickly.
Employers that perform strongly in absence management tend to go beyond policy reviews and administration. They are more likely to invest in preventative wellbeing activity and the overall employee experience.
Gaby Joyner, Head of Employee Experience for Europe at WTW, said leading organisations were taking a broader view of workforce health.
“By investing in wellbeing and the overall employee experience, organisations aim to reduce both the incidence and severity of absence and disability,” she said. “Programmes include mental health initiatives such as resilience training or on-site counselling, ergonomics interventions, and broader wellness campaigns focused on exercise and healthy lifestyles.”
Prevention Becoming Central
Taken together, the findings show a shift in how absence is understood. Rather than focusing only on managing time away from work, employers are looking more closely at how to prevent avoidable absence in the first place.
Early support for mental health, faster access to treatment and practical workplace adjustments can all play a role. For many organisations, the challenge is balancing cost control with meaningful support that helps employees stay well and stay in work.
With 141 UK employers contributing to the survey between September and November 2025, the picture that emerges is one of rising complexity. As health needs evolve, absence management is becoming a central part of workplace wellbeing strategy rather than a back office process.