The true cost of sickness: How UK businesses can tackle rising absence rates

Employee sickness is fast becoming one of the biggest operational challenges facing British businesses. Recent research reveals that almost nine in ten employers are now concerned about the impact of long-term and short-term absences on productivity, profitability, and workforce stability. With the average cost of long-term sickness estimated at more than £20,000 per employee each year, the financial and operational implications are significant.

While illness is an unavoidable part of working life, the growing frequency and duration of absence are causing organisations to reassess how they support employee health and wellbeing. Beyond lost output, many underestimate the hidden costs: temporary cover, reduced morale, and the extra workload placed on remaining staff. Surprisingly, a notable proportion of companies still fail to calculate the full financial impact of absenteeism — a missed opportunity to strengthen resilience and strategic planning.

The broader national picture adds urgency. Since 2019, the number of working-age people who are economically inactive due to health reasons has soared by around 40%, now standing at roughly three million. This trend not only affects the wider economy, costing an estimated £150 billion annually, but also places mounting pressure on employers already navigating tight budgets and talent shortages. Without intervention, these numbers are expected to climb even higher by the end of the decade.

Forward-thinking organisations are now re-evaluating their absence management strategies. Early intervention programmes, proactive health monitoring, and supportive return-to-work frameworks are proving vital in reducing both costs and disruption. Investing in employee wellbeing is no longer simply a moral decision — it’s a financial and strategic necessity. Quick, targeted action helps shorten recovery times, prevent recurring illness, and create a culture of care that benefits both employees and the business.

Small and medium-sized companies, in particular, stand to gain from earlier engagement with their teams when health issues arise. Open communication, flexible arrangements, and access to wellbeing resources can dramatically reduce time away from work. Employers who act swiftly not only protect their people but also safeguard their bottom line in a challenging economic climate.

The message is clear: absenteeism is not just a human resources issue — it’s a business performance issue. As sickness absence continues to rise, those organisations that prioritise employee wellbeing and early support will be best placed to maintain productivity, retain talent, and build long-term resilience.