Forcing yourself to work while feeling ill actually costs the economy more than if you took the time off to recover properly. — TNS
People working through illness rather than taking the day off is costing the UK economy billions of pounds every year, according to new analysis from the United Kingdom.
It comes as UK charity The Institute for Public Policy Research (IPPR) called for a “transition to a health-led economy”, with employers expected to do more to ensure good workplace health.
The report – the final major submission to the IPPR Commission on Health and Prosperity – estimates that the hidden cost of sickness on the British economy has risen by GBP30 billion (about RM176 billion) since 2018.
About GBP25bil (about RM146bil) of this is down to lower productivity caused by people working through illness rather than taking time off, the report suggests, with the remainder due to actual sick days.
The IPPR describes the UK as “the (literal) sick man of Europe”, with poor quality jobs, overconsumption of unhealthy food, smoking, gambling and low rates of investment impacting public health.
It warned that growing sickness will lead to people living longer in poor health, as well as posing a “grave fiscal threat”.
Citing analysis by the UK Office for Budget Responsibility (OBR), the report suggests that economic inactivity due to sickness could lead to an GBP8.9bil (about RM52bil) reduction in annual tax receipts, as well as higher welfare spending and higher healthcare spending.
IPPR senior research fellow Dr Jamie O’Halloran said: “Too often, UK workers are being pressured to work through sickness when that’s not appropriate, harming their well-being and reducing productivity.
“This can be because of bad workplace culture, poor management, financial insecurity or just a weak understanding of long-term conditions among UK employers.
“Our demonstration of a ‘hidden’ productivity cost of working through sickness should catalyse a change in approach.
“We should strive to make sure the work we do is good for our health, that we have the time to recover when we need it, and to ensure businesses both contribute to and benefit from population health.
“This would protect workers, boost profits and deliver growth.”
The report calls for a “health-led economy” built on three key pillars.
This includes employers being expected to ensure good workplace health, as well as tilting the economy away from junk food and alcohol towards products and services that promote health.
It also suggests investing in the “health industries of the future”.
“We need to think more carefully about how investments – including what our pensions are invested in – drive health and support the health industries of the future,” the report added.
IPPR commissioner and Impact Investing Institute chief executive Kieron Boyle said: “Businesses and investors increasingly see health as an asset, not a cost.
“This report is a blueprint for their role in creating a healthy and prosperous economy for everyone.”
Investors in People chief executive Paul Devoy added: “All the evidence shows there is a clear link between employers having a positive culture of well-being in their organisation with productivity and sustainable organisational performance.
“Focusing on systematically leading, supporting and improving a culture of well-being has long-term benefits for all employers who make that commitment to their staff.”
A spokesperson for the UK Department for Work and Pensions said: “No one should be forced to choose between their health and financial hardship, which is why we plan to strengthen statutory sick pay so that it provides a safety net for those who need it most.” – PA Media/dpa