Presenteeism is a major factor impacting workplace productivity in the UK, costing businesses billions annually. Explore the hidden costs of presenteeism, its impact on employees and practical strategies to improve productivity by fostering a healthier, more supportive environment. Data from the Office for National Statistics (ONS) shows the UK has a productivity problem. Ranking fourth in the list of G7 countries for productivity, the UK sits behind the US, Germany, and France and just above Italy and Canada in overall productivity. A study from the Institute for Public Policy Research (IPPR) reveals that a significant factor in this is employers turning up to work while they are unwell instead of taking sick leave. In this article, we take a closer look at presenteeism, its impact on UK employers, and how you can encourage staff to be more productive while taking time off when they need it.

What is presenteeism?

Presenteeism is when employees show up to work but are not fully functional or productive. This can occur due to illness, stress, or other factors that impair their ability to work at full capacity. Although they are physically present, their performance suffers, leading to reduced efficiency, increased errors, and a decline in workplace productivity. Presenteeism can cause significant problems for employers, including:

• Decreased productivity, which can result in financial costs
• Negative impacts on employee’s long-term wellbeing
• Increased likelihood of employees needing more time off in future

Furthermore, presenteeism is not tracked like absenteeism, largely due to the difficulty in identifying it and its knock-on effect. However, some experts believe presenteeism can have a larger cost to organisations than absenteeism.

The costs of presenteeism

Calculating the true cost of presenteeism for individual organisations can be challenging. Despite this, there is research available which highlights the significant impact it can have. For example:

•  Analysis from the IPPR shows a £30 billion rise in hidden costs due to employee sickness across the UK since 2018, £5 billion of which is attributed to absenteeism and £25 billion to reduced productivity from employees working while sick.
• The IPPR also found that UK employees are among the least likely in Europe to take sick days, on average losing the equivalent of 44 days (about 1 and a half months) of productive work annually by working through illness.
• According to a report from Deloitte, mental health issues account for around 46% of the total costs of presenteeism in UK workplaces.

How to boost productivity and avoid presenteeism in the workplace

There are a variety of steps employers can take to combat the loss of productivity that presenteeism can cause in the workplace. Below we’ve outlined five strategies you can look to implement.

1. Tap into flexible working

A big issue with presenteeism is that workers who are worried about how they are perceived by their bosses are more likely to be in the office when they shouldn’t be, whether because they are working too many hours, or because they have a health problem. Offering some level of flexible working can do wonders for employees who have a health condition. For example, employers can offer their employees:

• Flexibility around working hours
• The ability to work from home when required

These steps can be especially helpful for working parents. Our research shows only 31% of mothers have access to flexible working arrangements that enable them to effectively manage their childcare responsibilities. Furthermore, giving employees the option of remote working when they are feeling unwell would also reduce the risk of them passing any infectious illnesses onto other colleagues.

2. Offer real work-life balance

Employees are not necessarily going to produce higher quality work just because they are working long hours. In fact, the opposite is often true, as employees working fewer hours can actually result in a boost in productivity. Offering real work-life balance to employees is vital to improving employee engagement and retention, but also has the added bonus of increasing productivity for the hours that workers are actually at work.

3. Give employees a voice

A working environment that encourages employees to make their voices heard is far more likely to be one where they feel safe and secure taking time off when they need it. As a result, it’s important to make employees feel they have space to offer their feedback on the workplace culture and keep an open and honest conversation going around physical or mental health issues.

4. Help staff to reduce stress at work

Workers who are under stress are often less productive. They might be trying to work hard, but stress can reduce clarity of thought, impact their communication skills, and ultimately lead to longer-term sickness or other mental health conditions. Offering employees guidance on ways to manage stress in the workplace can help them stay refreshed mentally and physically, upping their productivity without the need for them to work longer hours.

5. Offer paid sick leave above the statutory requirements

While there are legal requirements for sick leave employers need to adhere to, offering a more generous paid sick leave policy can reduce presenteeism and improve productivity. That’s because these policies can help reduce the financial concerns that workers may have which force them to come to work when they are unwell. They will also see that there is a workplace culture where health is taken seriously, and workers are not expected to turn up if they are not in a fit condition to do so.

Reducing presenteeism to boost workplace productivity

Presenteeism is a growing issue in UK workplaces, costing businesses billions each year through lost productivity, and tackling it requires a proactive approach focused on employee health, flexible working options, and a supportive working environment. By implementing these strategies and offering benefits like enhanced sick leave, employers can effectively reduce the effects of presenteeism and boost overall productivity.