Wellbeing at Work: A Business Risk Hiding in Plain Sight

If you’re feeling the strain of sickness absence, mental health pressures, alongside tighter budgets, I can assure you that you’re not alone!  I’m seeing the same pattern across so many of the businesses we support. The labour market may be cooling, but long-term sickness remains stubbornly high and is proving extremely costly for employers.

Sickness Absence: A Growing Challenge

So many of the calls coming into our team at the moment are about sickness absence. Whether it’s short-term absence or long-term absence (often linked to mental health) it’s clear this is one of the biggest challenges employers are facing right now.

To put it into perspective, government figures showed 185.6 million sickness absence days in 2022—equivalent to more than 800,000 full-time posts. That’s not just a wellbeing issue; it’s a serious business continuity and cost risk. Over the summer, the British Chambers of Commerce went so far as to warn that small firms simply cannot absorb the full impact of the UK’s workforce health crisis without additional support.

The Business Impact of Rising Absence

This is something I see echoed in my conversations every day. Many small businesses don’t have access to occupational health services, and leaders are stuck between rising costs and rising employee needs. This isn’t just a passing challenge—it’s structural, and it’s something we all need to tackle head on.

The consequences of rising sickness absence are felt in every corner of a business. Operationally, I see how persistent absence drives up turnover and adds hidden costs through recruitment, training, and the loss of experience when staff leave. And when employees do return after long periods of sickness, they often find themselves struggling without the right adjustments in place. All too frequently, this leads to another cycle of absence or even resignation. From a compliance perspective, the risks are equally stark. Failing to manage sickness fairly, or neglecting to make reasonable adjustments, can quickly escalate into grievances or even tribunal claims.

Legislative Change on the Horizon

As if this wasn’t enough for employers to contend with, we also have significant legislative change on the horizon. The Employment Rights Bill is now in its final stages and one of its headline reforms will be to Statutory Sick Pay. SSP will become payable from day one of sickness absence, removing the current waiting days. It is also expected that SSP will be capped at the lower of the weekly SSP rate, currently £118.75, or 80% of an employee’s average weekly earnings. Although these reforms are unlikely to come into effect until April 2026, once the Bill receives Royal Assent, businesses will need to move quickly. I know many employers feel overwhelmed at the thought of yet more change, but my advice is simple: don’t wait until the last minute. Start preparing now so that when the time comes, you are ready.

Using Awareness Days to Refocus on Wellbeing

October is the perfect month to focus on this issue. National Work-Life Week, running from 6–10 October, gives us an opportunity to reset how we approach wellbeing in the workplace. And with World Mental Health Day falling on 10 October, it’s a powerful reminder that there is no health without mental health. These awareness days are not just dates in the diary—they are a prompt to ask ourselves whether we are doing enough to support our people and whether our policies and practices are truly fit for purpose.

Treat Workforce Health as a Business Risk

From my perspective, the best starting point for any business is to treat workforce health as a genuine business risk. That means really understanding your absence data—not just how many days are lost, but the reasons behind them and the impact they are having on your operations. With that insight, you can then focus on strengthening your absence management framework. Policies will need updating to reflect day-one SSP, but the real difference comes when managers are equipped to hold consistent, supportive return-to-work conversations. It’s about combining structure with humanity: clear procedures, accurate record-keeping, and a tone that balances fairness with compassion.

Flexibility and Early Intervention Are Key

Flexibility and job design are also critical. Too often, I see people come back from sickness absence only to be expected to “slot straight back in.” This rarely works. Phased returns, adjusted duties, or more predictable working hours can make all the difference to whether someone is able to sustain their return. Early intervention is equally important. Whether it’s signposting to occupational health, offering counselling or financial wellbeing support, or simply training managers to spot red flags, small steps taken early can prevent much bigger problems later on.

Preparing for SSP Reform

Preparing for SSP reform should now be part of every employer’s roadmap. Payroll and HR systems will need to be updated, budgets adjusted, and contracts and handbooks reviewed to ensure compliance. Just as importantly, staff communication will need to be clear, and managers confident in applying the changes consistently. Handled well, these reforms can actually be a chance to strengthen trust and demonstrate a genuine commitment to staff wellbeing.

Make the Most of Work-Life Week

National Work-Life Week is a great time to put some of these ideas into practice. A leadership message on the importance of balance, a quick refresher for managers on absence management, or even a simple staff survey to ask what would help them work better—all of these are easy but powerful steps. On World Mental Health Day, encouraging your team to make a small but practical change—whether it’s taking a proper break, switching off at the end of the day, or having a “no-meeting” hour—can send a strong message about culture and priorities.

How HR:4UK Can Help

At HR:4UK, we know just how daunting this can feel. We are a small business ourselves, and we experience the same pressures you do in trying to keep the wheels turning while supporting our people. That’s why we’re here to take the weight off your shoulders. From updating your policies and documents to training your managers and even building simple absence dashboards so you can see the real picture, we’ll make sure you are prepared for both the immediate challenges and the reforms ahead. Get in touch if you’re not sure where to begin, we can start with a light-touch health risk review and help you put a plan in place for Work-Life Week that fits your team and your sector.