Sickness absences of six months or more cost a typical business £770,000 per year

But providing access to support early on can reduce the length of these absences by 17 percent – 60 weeks for the average long-term absence of 7 years

A new report from the Centre for Economics and Business Research (Cebr) analyses the impact that early intervention and rehabilitation services can have on reducing long-term sickness absence, which for a typical business of more than 500 employees, costs an estimated £770,000 per year.

The report, commissioned by employee benefits provider Unum, shows that actively using early intervention services can reduce the average length of absence by 17 percent. That means a reduction of more than a year (60 weeks) for the average long-term absence of seven years or turning an absence of seven months into six. Mental health conditions saw the greatest impact, with an 18 percent reduction in the duration of absence as a result of using early intervention services. And with an estimated 1 in 4 people now experiencing mental health problems at some point in their life – causing over 70 million working days to be lost each year – early intervention can make a real difference.

There are a number of early intervention services which can kick-in as early as one week into a sickness absence. Often provided as part of a comprehensive Group Income Protection (GIP) package, the services highlighted in the report include:

Vocational rehabilitation services

Mental Health First Aid

Cognitive behavioural therapy

Employee Assistance Programmes (EAPs)

Early intervention helpline

GIP, which provides a financial back-up plan for employees in case of long-term illness or injury, can provide employers with a payback of £61 for every £100 spent on GIP premiums through avoiding Occupational Sick Pay ( OSP) and other costs associated with sickness absence. But crucially the Cebr study shows that actively using early intervention services included as part of GIP packages can increase this payback by around 10 percent – an additional £270 million pounds to UK businesses – or £66 for every £100 spent.

The report quantified the main costs of long-term sickness absence namely: OSP paid to the absent employee, the salaries of replacement staff, and the recruitment and training costs associated with replacement staff as well as a quantifiable loss in productivity. It found that the most typical causes for long-term sickness absence are mental health and musculoskeletal conditions. Furthermore the findings suggested that this is a growing problem – particularly with the changing make-up of the workforce and the number of older workers increasing, the rate of long-term sickness absence is expected to grow by 4 percent by 2030.

Joanne Abate, assistant VP global health management at Unum, said; “By offering the use of early intervention services like vocational rehab or pointing staff towards services offered within Employee Assistance Programmes, employers can help tackle health issues before they become more serious, reducing both the personal and financial impact of long-term sickness absence. At present many employers aren’t taking advantage of the early intervention services that might already be available to them through their benefits package. Smart businesses should provide their employees with these early intervention services such as: 

Physiotherapy

Positive ageing guidance