The Hidden Crisis Behind Britain’s Workforce: How Employee Illness Is Draining Businesses Dry

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(Commonwealth_Europe) Almost nine in ten UK businesses say they’re increasingly worried about the impact of employee sickness, both short-term and long-term, on their operations and their people. According to new research by MetLife UK, long-term absences of more than four weeks are now a major concern for 88% of employers, while 86% are also anxious about shorter absences. What’s clear is that sickness is no longer just about time off; it’s about the strain it places on teams, finances, and morale.

MetLife UK’s new whitepaper, Early Intervention: Reduce Absence, increase productivity, keep Britain working, created with Small Business and Consumer Champion Liz Barclay, reveals just how costly this issue has become. On average, every long-term sickness case costs a business around £20,735 per employee per year, while short-term absences cost about £13,800. These numbers don’t just represent lost productivity; they also include the cost of hiring temporary replacements, paying overtime, and the extra stress placed on other team members trying to fill the gap.

Even more worrying is that one in seven businesses doesn’t track these costs at all, meaning many could be spending far more than they realize. For smaller firms, especially, one person’s prolonged illness can disrupt everything, deadlines get pushed back, customers wait longer, and other employees take on additional workloads, increasing the risk of burnout.

The issue comes at a time when the UK is already facing a growing health-related workforce crisis. The government’s Keep Britain Working Review found that the number of working-age people unable to work due to health reasons has surged by 40% since 2019, reaching around three million today. This costs the economy roughly £150 billion a year, a figure expected to rise as another 600,000 people are predicted to leave the workforce for health reasons by 2030.

Charlotte O’Brien, Head of Employee Benefits at MetLife UK, said businesses need to take a more proactive approach. “Supporting employees when they’re unwell must always come first,” she said. “But without proper management and early support, absences can stretch longer than necessary and lead to bigger problems for both the employee and the business. Quick, targeted help can prevent small issues from turning into long-term health challenges and shows employees that their wellbeing genuinely matters.”

Liz Barclay, who authored the whitepaper, spoke from personal experience about the toll sickness absence can take. “I’ve seen how illness can hit small businesses hard,” she said. “When someone who’s skilled, experienced, and valued has to take time off, it doesn’t just affect productivity, it affects people. These are real lives. Employees have bills to pay, families to look after, and most of them just want to get better and get back to work. Too often, they fall through the cracks when early help could have made all the difference.”

Barclay said the findings should serve as both a warning and a call to action. “This isn’t just about repeating a problem we already know exists,” she said. “It’s about urging business leaders to act, to look after their people early and effectively. Supporting workers through illness isn’t just the right thing to do; it’s smart business. A company’s greatest asset is its people, and helping them stay healthy, supported, and connected to work is key to keeping Britain’s businesses strong.”

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