UK businesses are facing significant financial strain from employee sickness absence, according to new research from employee benefits and protection provider MetLife UK. Long-term sick leave is now costing employers an average of £20,735 per employee.
The figure accounts for a range of hidden and direct costs, including temporary staffing, training, administrative burdens, and increased workloads for colleagues.
The study of 1,000 Business Owners and Senior Decision Makers, including HR Directors in the UK, found that even short-term sickness comes at a high price, costing an average of £13,800 per employee.
Employees took an average of 6.38 days off in the last 12 months.
When asked how they calculate the cost of sickness absence, multiple factors were measured. More than two fifths (43%) of businesses said they measure it as a loss in productivity, and 41% look at average daily absence costs, such as employee wages.
Meanwhile, 39% assess reduced business efficiency, and 35% consider it a direct hit to overall profitability. A fifth (20%) of businesses cite lost opportunities as a cost factor, while 16% admitted they do not currently calculate the cost of sickness at all.
Charlotte O’Brien, Head of Employee Benefits at MetLife UK, said, “Early intervention plays a vital role in building a healthier, more resilient and productive workforce. Acting quickly allows employers to minimise time off, reduce the risk of long-term ill health, and ensure employees feel genuinely supported and cared for.
“Offering preventative and early support services – like GP24, Employee Assistance Programmes (EAPs), and access to counselling – allows health concerns to be addressed before they escalate. Left unmanaged, these issues can become more serious, leading to prolonged absence, higher costs, and greater disruption for the business.
“Early intervention is proven to reduce absence levels by helping colleagues return to work more quickly. In fact, we’ve found that 96% of employees have a positive outcome from being able to step in at an early stage of absence.”
MetLife’s Group Income Protection (GIP) supports employees through health and sickness, with additional free added services like gamified wellbeing tools, as well as early intervention, rehabilitation, recovery and return-to-work support. A GIP policy that drives engagement with wellness and early intervention helps keep work working, and in putting employee wellbeing at the heart of the policy, supports in maintaining and supporting a healthy workforce.
