According to a whitepaper published by MetLife UK in partnership with former Small Business Commissioner Liz Barclay, almost nine in ten (88%) business owners and senior decision-makers are concerned about long-term employee sickness — defined as absences lasting more than four weeks — while a similar 86% worry about short-term sickness.
The findings, published in Early Intervention: Reduce Absence, Increase Productivity, Keep Britain Working, detail the financial burden of sickness absence across UK businesses. Short-term sickness alone costs employers an average of £13,800 per employee annually, with additional expenses including temporary cover and extra hours worked by colleagues.
However, one in seven (15%) businesses admit they don’t calculate how much they spend on sickness-related costs, suggesting the true financial impact could be significantly higher.
The report also highlights the top challenges companies expect to face over the next year — including business performance (12%), employee retention (8%), and long-term sickness (6%) — warning that absenteeism threatens both productivity and profitability if left unaddressed.
Charlotte O’Brien, Head of Employee Benefits at MetLife UK, said: “While the absolute priority is ensuring employees feel supported during moments of absence, whether short or long-term, without careful management this could prolong time away from work and could trigger more serious issues, higher costs, and greater business disruption.
“Sir Charlie Mayfield’s government review aims to cut the numbers of long-term sickness which calls for a lot more to be done through the workplace - which is where the benefits of preventative and early intervention tools are so important. Quick and targeted action enables employers to minimise time off, reduce the risk of long-term ill health, and ensure employees feel properly supported and cared for.”
The whitepaper’s findings coincide with the Government’s Keep Britain Working Review, which shows that the number of working-age people who are economically inactive due to health reasons has risen by 40% since 2019, reaching around three million people. The economic cost of this inactivity is estimated at £150 billion per year, with projections suggesting a further 600,000 people could leave the workforce by 2030 due to ill health.
With this trend expected to worsen, MetLife UK argues that implementing early intervention measures and policies such as Group Income Protection (GIP) can help employers support employee wellbeing while managing the cost pressures associated with sickness absence.
Liz Barclay, Small Business and Consumer Champion and author of the whitepaper, emphasised the urgent need for business leaders to act: “I’ve spent decades working with businesses of all sizes. Sickness absence is surging, and as a small business owner, I know the impact it can have on productivity and profitability, as well as on the relationship with customers. For me, the most important people at the heart of the detriment, are skilled, experienced and are hugely valuable and valued employees - people with mortgages, rent and bills to pay. People who are becoming unwell and being unnecessarily lost from the workplace, when their preference would be better health and remaining in work earning their salary. Founders, owners and bosses owe it to their business and their employees to support them, as quickly as possible, back into the saddle.
“I am not simply replaying the problem statement we already know exists, it’s both the wake-up call and a rallying cry to UK businesses. The purpose of this whitepaper is to bring to the forefront a possible solution to help safeguard both workforce wellbeing and the bottom line.”
