Sick leave in the UK has surged by almost half (41 per cent) over the past three years, exacerbating an already difficult struggle with declining productivity levels, new research revealed.
The survey of 1,000 HR decision-makers by TotalJobs highlighted how rising absenteeism is fuelling a “cycle of poor business performance affecting both employees and employers.”
More than half (59 per cent) of HR leaders surveyed link this surge in sick days to the deterioration of workplace culture and declining employee satisfaction.
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These trends are also affecting employee performance, with 55 per cent of HR leaders reporting a noticeable drop.
Absenteeism: a key driver of ‘unhealthy cultures’
Lisa Seagroatt, founder of HR Fit for Purpose, stressed the critical link between employee well-being and business success.
Seagroatt explained that “when employees feel valued and engaged”, they are more likely to contribute positively to the workplace, resulting in “good productivity outcomes” for any business.
She highlighted absenteeism as a key indicator of underlying cultural issues within a business. “Absenteeism is often caused as a result of an unhealthy business culture,” she said, pointing to factors such as poor leadership, ineffective communication, and recruitment strategies that focus on filling roles rather than prioritising people.
This, she noted, often results in high vacancy rates, which “create an additional strain” on the workforce.
Seagroatt said the pandemic also had an effect on employees’ productivity, explaining that while for some, remote working has been “a gift” with productivity remaining high, for others, “the lack of human interaction” has led to “disconnect and disengagement” from the workplace.
“Once you start to feel this way, it can have a negative impact on mental health and wellbeing,” she noted, adding “people’s expectations of their employers have increased since the pandemic – they expect to be looked after more than ever before, and to a degree, they should be.”
Causes of declining productivity and ways to address them
The report also identified five main drivers behind declining productivity: increased workloads (30 per cent), difficulty attracting talent (24 per cent), a growing reliance on temporary staff (23 per cent), low morale (23 per cent), and absenteeism itself (23 per cent).
Together, these factors are contributing to high employee turnover, with 25 per cent of resignations in the past year driven by stress, burnout, or other mental health issues.
To address this productivity slump, the report highlighted that HR leaders are turning to three key strategies: offering flexible working options to improve work-life balance (28 per cent), increasing investment in training and development (27 per cent), and enhancing communication from leadership (27 per cent).
Tracey Paxton, clinical director at Perkbox Vivup, supports these strategies but stressed the importance of conducting monthly wellbeing assessments.
“Regular assessments give employees a chance to share feedback on their mental and physical health, workload, and overall satisfaction,” Paxton explained, allowing employers to address concerns in real-time.
By identifying common issues, organisations can then make targeted changes, such as redistributing workloads or enhancing mental health support, ultimately reducing stress and absenteeism.
Paxton also highlighted the importance of managerial training in recognising stress and burnout, noting that managers are often the first to notice such issues.
“Managers need the tools to recognise stress, whether it’s through changes in behaviour or increased sick leave,” she said, adding that offering flexible working options or referrals to professional services can provide much-needed support.
“By fostering a supportive environment where mental health is prioritised, organisations can prevent the rise of absenteeism and break the cycle of poor business performance that affects both employers and employees.”
Hurdles in filling workforce gaps
However, significant challenges remain. Over half (53 per cent) of HR leaders point to a shortage of suitable candidates and limited budgets to fill gaps left by sickness and declining productivity.
Additionally, 50 per cent believe a lack of clear communication from senior leaders is hindering efforts to resolve these issues.
Although 89 per cent of UK businesses are still actively hiring, the volume of new appointments has slightly dipped compared to last year. Only 28 per cent of companies plan to ramp up hiring this quarter, down from 38 per cent at the start of the year.
The focus has shifted towards securing skilled talent, with the most in-demand abilities being customer service (26 per cent), technical expertise (25 per cent), and soft skills (25 per cent).
However, 64 per cent of recruiters are struggling to find candidates with the right skills and 55 per cent citing time pressures and the lengthy recruitment process as major hurdles.
As a result, hiring confidence has taken a hit, dropping to 68 per cent in Q3 from 77 per cent in Q2, reflecting growing uncertainty in the UK job market.
“HR needs to have the courage to influence the recruitment process,” said Seagroatt.
Without this influence, businesses risk making poor hiring decisions, which can lead to a chain reaction of problems. “Rushed recruitment often leads to people churn,” she warned, adding “that this cycle only puts more pressure on remaining staff.”
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