"As an employer, it’s crucial to have an intimate understanding of your workforce to be able to assess the potential risks that it, and your business, face."
- Julia Turney, Partner and Head of Platform & Benefits at Barnett Waddingham
Of those surveyed (301), 34% of employers said they’ve seen an overall decline in productivity due to increased levels of absenteeism, often caused by long-term health conditions which were most prominent amongst employees aged 55-68 years old (34%).
Barnett Waddingham found that absenteeism triggered by long-term health conditions has caused poor staff morale (35%), higher levels of people-related risk (31%), and an overall decline in employee wellbeing (29%).
Furthermore, employers have expressed concerns over the impact of an ageing workforce with over a quarter (28%) revealing that they’ve had to hire to fill skills gaps, followed by changes to their recruitment process (22%), and additional training (18%).
The combination of long-term health conditions and ageing workforces has resulted in higher people & cost-related risks. Two-thirds (66%) of employers said they’ve seen an increase in healthcare benefit provision costs, whilst 74% have observed a decline in the wellbeing of their workforce. 57% raised concerns about age discrimination in the workplace.
Although 70% of employers felt adequately prepared to manage the impact of absenteeism (and 73% regarding an ageing workforce), solutions varied. 31% thought flexible working arrangements would be helpful, while 26% said improved healthcare benefits are essential. However, 22% would like to see increased government focus on fixing the healthcare system - reducing NHS waiting lists to alleviate the burden.
Encouragingly, 33% of employers said developing tailored wellness plans for different age demographics is a strategic priority. 34% are looking to improve access to physical health resources whilst 35% are looking to invest in technologies to support remote healthcare.
“We’ve seen the headlines on long-term sickness and ageing workforces, and we now have the proof. Businesses are facing a critical risk to their organisation’s future if they don’t recognise and address these problems. These are serious and sensitive issues, impacting real everyday people, and they must be treated as such,” explained Julia Turney, Partner and Head of Platform & Benefits at Barnett Waddingham.
She said: “If left unchecked, businesses may soon be dealing with faltering productivity, dissatisfied employees, and even financial losses. The first step to addressing these issues should be understanding their scale. As an employer, it’s crucial to have an intimate understanding of your workforce to assess the potential risks that it and your business face.
“Over 9mn people are still classed as economically inactive, a large chunk of which is because of long-term illness. On top of this, the rising cost of living, and more recently the testing Budget, will see more and more people staying in work for longer. The government wants to resolve this, with investment in the NHS and its ‘Get Britain Working’ whitepaper – but the devil will ultimately be in the detail of how this is executed," Julia concluded.
