Cost of Absence

What is the cost of employee absence?

Indirect and hidden costs can cause employers to spend the equivalent of about 9% of their annual costs on absence. Overall, the median cost of absence per employee was £5549 in 2015, a reduction from £59510 in 2013. The estimated cost remains considerably high, however by tackling sickness absence the employer can benefit from retaining human capital, reducing staff turnover costs, improved reputation and a more engaged and productive employee. With today’s UK economy along with Brexit, businesses are facing direct and indirect costs that negatively impact their business operations, as well as the bottom line. This combined with the current population levels of obesity, diabetes, mental health problems and long term conditions sets a very stark picture of where we are and where we will be in the future. In fact, the National Institute for Health and Care Excellence (Nice) suggest that employers and organisations need to seriously consider the future provision of their employee health strategies. Here


Employers are shouldering the burden of costs related to an increasing unhealthier workforce, costs related to absenteeism, and costs associated with employees who are not away from work but are not fully engaged in working due to continual illness and long-term medical conditions.

shutterstock_99099152It makes sound business sense to introduce a health and wellbeing strategy for an organisation whatever the size be it small or a multinational. Employers are not the only people considering the benefits of wellness programs.