Third of of employers not tracking absence impact

This represents a shift from 2024, when 69% of employers reported measuring the impact of sickness absence – the highest in six years – and 27% did not.

There is much discussion about ‘sick Britain’ and the UK’s lack of productivity but employers can deal with this issue better when they are well-informed. Absenteeism, and its close relation, presenteeism, can cause problems for organisations of all shapes and sizes, and they can be difficult for employers to tackle if they don’t have an accurate understanding of the magnitude of the issue within their own organisation.

Katharine Moxham, spokesperson for GRiD, said: “It’s vital that employers record absence and have a good understanding of the impact to their business. Those that do, are in a much better position to know what support to put in place, and can then measure the return on investment of mitigating absence and expediting returns to work.”

How the impact of sickness absence is measured by employers

When the necessity of tracking the impact of sickness absence is recognised and implemented, the predominant method used by employers is the cost of lost time i.e. hours and days (48%). The loss of productivity is a measure used by 45% of employers, and calculating the cost of sick pay provision (e.g. Statutory Sick Pay and salary costs) by 40%. Thirty-nine per cent measure indirect costs, such as colleagues covering work, learning time, and management time; and 34% measure direct costs, such as for temps and agency fees.

The steps employers can take

Employee benefits – particularly group risk benefits such as employer-sponsored life assurance, income protection, and critical illness cover – provide valuable support, not only for health-related concerns, but also for broader life challenges that may lead to employee absence. It is well documented that the longer an individual remains away from the workplace, the less likely they are to return. Therefore, early intervention and timely support are critical in facilitating a smooth and sustainable return to work.

Katharine Moxham concluded: “Absence and its impact inevitably affects every organisation. Unplanned employee absences can disrupt workflow, reduce team efficiency, and increase operational strain. To mitigate these challenges, employers must provide proactive support that helps employees remain in work wherever possible and facilitates a smooth, timely return when absences do occur.”

_{* Employer research was undertaken by Opinium from 7-15 January 2025 among 500 HR Decision makers.}