UK sickness absence remain at their highest in a decade. This is largely attributed to the ongoing mental health challenges of working-age individuals, exacerbated by the pandemic’s lingering effects and the ongoing cost-of-living crisis.

For employers, the situation is further complicated by recent increases in National Insurance contributions and the minimum wage, which is highly likely to restrict the vacancies available and will push businesses towards maximising productivity from existing staff rather than taking on new employees whilst navigating tighter budgets.

The psychological toll of the pandemic continues to ripple take a toll on workplaces. Many employees are struggling with stress, anxiety, and burnout, made worse by financial pressures and economic uncertainty. This cycle affects not only employee wellbeing but their workplace productivity, placing a significant strain on teams and resources. Businesses are under pressure to tackle these challenges proactively, as unchecked absenteeism can lead to lower morale, higher costs, and diminished service quality.

The new Labour Government has recognised the urgency of addressing long-term sickness absence and mental health in the workplace. Their proposals might include:

• Improving Access to Mental Health Services: Expanding funding for counselling and support services tailored to working-age individuals.
• Flexible Working Initiatives: Promoting policies that help employees balance work and personal challenges, reducing stress and absenteeism.
• Incentives for Employers: Introducing measures to encourage businesses to take on employees who have been on long-term sick leave, with targeted financial support.

However, what employers are most likely to want to see are immediate, practical solutions. Without additional incentives or subsidies to offset the increased costs of hiring and retaining staff, particularly those returning from extended absences, the burden of these initiatives may fall disproportionately on businesses already grappling with rising expenses.

Faced with the dual challenges of rising costs and an ongoing mental health crisis, employers must maximise productivity from their existing workforce while ensuring employee wellbeing is prioritised. This requires a proactive and strategic approach to managing mental health and attendance.

1. Invest in Mental Health Training: Equipping managers with mental health awareness skills can help them identify early signs of employee distress and provide timely support, preventing minor issues from escalating into prolonged absences. Training like that offered by HR Champions Ltd empowers managers to foster open conversations and implement practical solutions.
2. Supportive Workplace Adjustments: Flexible work arrangements, wellness programs, and reduced workloads during periods of stress can help employees stay engaged and productive, even during challenging times.
3. Rebuild Confidence in Long-Term Absentees: To encourage employers to hire those returning from extended sick leave, the government must offer tangible support. Enhanced financial incentives, such as reduced National Insurance rates for these hires, could make a significant difference.
4. Focus on Efficiency and Retention: With higher wage bills and National Insurance contributions, businesses must focus on getting the most from their existing teams. Setting clear goals, offering targeted training, and ensuring strong leadership will drive productivity without overburdening staff.

The ongoing sickness absence issue and the increasing financial pressures on businesses highlight the need for a collaborative approach between employers and the government. While businesses must take steps to support employee wellbeing and productivity, the government must provide practical incentives to help organisations manage the costs of hiring and supporting staff with long-term health challenges.

By investing in mental health awareness training and workplace adjustments, businesses can play their part in protecting their workforce and thereby enhancing productivity. Coupled with the right government support, employers will be better positioned to contribute to the recovery of those affected by long-term sickness, ensuring a healthier, more resilient workforce for the future.

For more information about our Mental Health and Leadership courses, look through the training pages on our website call us on 01452 331331 or contact via our contact page.