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Respiratory cost tool launches as employers face hidden £44bn sickness bill

by Benefits Expert
28/04/2025
Common cold, work, sneeze, cough, sick, presenteeism, absenteeism, respiratory, ill, productivity, cost, workforce, health, wellbeing
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Employers can calculate the cost of workplace respiratory infections, such as the common cold, influenza and sinusitis, as pharmaceutical firm Pfizer has launched a new ‘Respiratory Cost Calculator’.

To use the tool, employers input basic information about their business and receive an estimate of the productivity costs of short-term respiratory infections based on employee absenteeism and presenteeism.

By offering data-driven insights, the tool has been designed to help employers to better anticipate and prepare for the impact of respiratory infections.

The tool was developed in partnership with the independent Office of Health Economics (OHE) and is hosted on their website.

A recent report from OHE, commissioned by Pfizer, found that employee productivity losses from respiratory infections cost UK businesses £44 billion a year. Researchers said this equals an average of £852 per employee each year. 

OHE said it was notable that presenteeism (working when you are ill) is rarely quantified or accounted for by businesses. However, the research body found that presenteeism caused by respiratory infections costs businesses more than absenteeism. It accounts for 54 percent of the total costs of productivity loss. 

Researchers said that this suggests the overall impact for employers could be double that of some estimations based on absenteeism alone.

Acute respiratory infections were one of the most common reasons for people going to  Accident & Emergency Departments, according to data from NHS England and the UK Health Security Agency (UKHSA) published in February 2024.

This means that managing these infections is critical to reduce the pressure on public healthcare.

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Emma Clifton-Brown, head of access and value at Pfizer UK, said: “Respiratory infections are an often-overlooked cause of lost productivity and have varying impacts on business sectors.

“This free interactive tool empowers employers to understand the potential scale of these costs and helps raise awareness to stimulate companies exploring and implementing preventative measures, such as improved hygiene, workplace vaccination programmes and avoiding contact with people who have symptoms, that could mitigate them.”

Helen Hayes, project lead and associate principal economist at OHE, said: “The impact of respiratory infections on the NHS is significant, both in terms of patient burden and staffing challenges. What’s less-well recognised is the impact beyond the NHS, with businesses bearing the brunt of reduced productivity due to short term absences. This makes the case for employers to step in, investing in preventative measures to drive productivity gains and ease the strain on the NHS.

“This new calculator gives employers a tailored understanding of how respiratory infections could be affecting their business. With just a few inputs, the tool estimates the cost to their business, helping organisations recognise that respiratory infections are an overlooked yet preventable drain on productivity, and to consider targeted mitigation strategies.”

Employers can receive a tailored cost estimate by inputting the number of employees, region, industry, and other relevant optional information such as absenteeism and presenteeism rates, temporary absence cover, average wage and sick-pay. For users without this data, the tool will use industry averages and assumptions including benchmark information from YouGov survey data and ONS cost data.

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The US retreat from diversity, equality and inclusion (DEI) is making waves far beyond the country's borders. In the wake of President Trump’s executive order abolishing DEI across federal government departments, global firms like Goldman Sachs and Accenture have rapidly dialled down their own efforts. 

The influence is being felt in the UK too. However, the UK operates under a different legal framework. It has stronger workplace protections and a government actively looking to enhance employee rights through its Make Work Pay agenda. But as US firms reposition their approach to DEI, UK subsidiaries could find themselves caught between conflicting priorities.

In the latest Benefits Unboxed podcast, co-hosts Claire Churchard, editor of Benefits Expert, Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, industry veteran and reward and benefits consultant, discuss how the US DEI rollback might impact UK businesses.

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