Majority of UK businesses alarmed by rising employee sick leave

A new report from MetLife UK and former UK Small Business Commissioner Liz Barclay warns that rising levels of employee sickness are posing significant financial and operational challenges for UK employers.

The white paper, titled “Early Intervention: Reduce Absence, Increase Productivity, and Keep Britain Working,” reveals that 88% of business owners and senior decision-makers are concerned about long-term employee sickness, while 86% are worried about short-term absence.

According to the findings, long-term sickness costs employers an average of £20,735 per employee each year, while short-term absence costs £13,800 per employee annually. These figures account for the direct and indirect costs of absence — including replacement staffing, reduced productivity, and additional workloads for remaining employees.

However, the report also found that one in seven (15%) businesses do not estimate their sickness-related spending, suggesting that many could be underestimating the financial impact of absenteeism.

The white paper examines the effects of workplace absence on businesses of all sizes and outlines how early intervention strategies can help reduce sickness duration, improve employee wellbeing, and protect company productivity. Among the biggest challenges cited for the next 12 months are business performance (12%), employee retention (8%), and long-term sickness (6%).

The findings come amid government data showing that the number of working-age people out of the labour force due to health issues has risen 40% since 2019, reaching around three million people. This economic inactivity is estimated to cost the UK £150 billion annually, with projections suggesting a further 600,000 people could leave the workforce due to ill health by 2030.

“While the absolute priority is ensuring employees feel supported during moments of absence, without careful management this could prolong time away from work and trigger more serious issues, higher costs, and greater disruption,” O’Brien said. “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.”

“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 customer relationships,” Barclay said. “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.”

The Early Intervention white paper argues that employers who adopt targeted health and wellbeing policies, such as Group Income Protection (GIP) and early intervention programmes, can better manage costs while supporting staff recovery and retention.