About a third of employers, 32%, do not track the impact of sickness absence, up from 27% in 2024, when 69% did, the highest level in six years.
Among employers that do monitor it, Grid reports the most common methods: calculating the cost of lost time, 48%; lost productivity, 45%; or sick pay, 40%. Others assess indirect costs, such as colleagues covering work, lost learning, and management time, 39%, while 34% measure direct costs like agency or temporary staff fees.
Grid says employee benefits, particularly group risk products such as life assurance, income protection and critical illness cover, can make a significant difference. They provide support for both health issues and wider life challenges that may lead to absence. It says that since people are less likely to return the longer they stay away, early intervention and timely support are key to helping employees come back to work and stay there.
Grid spokesperson Katharine Moxham says: “It’s vital that employers record absence and have a good understanding of the impact to their business. Those that do are in a much better position to know what support to put in place, and can then measure the return on investment of mitigating absence and expediting returns to work.
“Absence and its impact inevitably affects every organisation. Unplanned employee absences can disrupt workflow, reduce team efficiency, and increase operational strain. To mitigate these challenges, employers must provide proactive support that helps employees remain in work wherever possible and facilitates a smooth, timely return when absences do occur.”
