The cost of presenteeism – Would having more sick days be cheaper?

Colder weather has swept away the blistering heat of the scorching summer and the new season comes with a standard increase in the rates of illness.

Some people may have already picked up a bug from children returning to school and employers need to consider how to manage staff absences.

As more people work while ill than before, something that looks to be superficially helping a business might be doing more harm than good.

Why is presenteeism costing businesses money?

Presenteeism, the act of working while unwell, is becoming increasingly common, with nearly half of all people in the UK engaging in the practice.

Hybrid and remote work have made it easier for people to continue working while ill, as they no longer have to be concerned about sharing germs with colleagues if they can type away from the comfort of their sickbed.

This shift in how people work is reflected in the number of sick days taken, as the Office for National Statistics (ONS) found that workers aged 16 to 24 took an average of 2.4 days off sick last year, compared to 6.2 days for those aged 50 to 64.

While powering through illness is often seen as a positive trait, the lack of focus and slower work pace could be harming productivity more than if an employee took the day off.

The Institute for Public Policy Research (IPPR) found in 2024 that employees lose the equivalent of 44 days’ productivity on average due to working through sickness, up from 35 days in 2018.

Although sick days had risen in the same period, going from 3.7 to 6.7, the damage of presenteeism on productivity was stark.

The report indicated that of the extra £30 billion that had been lost to sickness since 2018, £5 billion had been lost to sick days and £25 billion had been lost to productivity dips connected to presenteeism.

Employers may be tempted to encourage presenteeism, but the risk to productivity could be an indication that more investment is required in the health and wellbeing of employees.

How can the financial impact of presenteeism be mitigated?

Employees will become ill during the course of their employment, so knowing the best ways to accommodate their needs and preserve productivity is vital.

This winter will be the first to see the full impact of the new Statutory Sick Pay (SSP) rules, which have made more employees eligible for SSP by removing the Lower Earnings Limit (LEL) and have given day-one access to SSP.

It is hoped that the changes will encourage people to step away from work when they really need it, as they no longer risk missing out on pay.

However, the cost-of-living crisis means that some may not be able to afford to take the downgrade in pay that comes with taking a sick day.

SSP is the lower of either 80 per cent of the employee’s average weekly earnings or the prevailing SSP flat rate set by the government – £123.25 per week for the 2026/2027 tax year.

Employers could consider paying above the rate of SSP, potentially paying staff as normal or reducing the gap by some amount if they feel this would encourage the team to take care of themselves.

Such a measure may not fall within the budget of all businesses, so finding an alternative approach to supporting health and wellbeing could be a way to preserve productivity.

Private health insurance and gym memberships could encourage employees to address health concerns early, while flexible working conditions can reduce stress and allow for the management of more long-term conditions.

Getting the support from an accountant is vital for determining what is possible for your business’s budget to accommodate and how potential dips in productivity could impact profit.

The insights of our experts can empower you to take the necessary measures to strengthen your team and protect your productivity during the winter months.

Get in touch with our team for expert support in maintaining healthy productivity during winter.