Absence Anxiety in UK SMEs: What Employers Needs to Know

Picture this scenario: An employee books a week’s holiday but spends half of it checking work emails. Another team member comes into the office with obvious flu symptoms because they feel guilty about taking sick leave. A manager hasn’t taken a proper break in 18 months, convinced the team can’t function without them.

Introducing absence anxiety - a workplace challenge quietly affecting productivity, wellbeing and retention across UK SMEs.

What is absence anxiety in the workplace?

Absence anxiety refers to the stress and unease employees experience when taking time away from work. It’s the nagging feeling that something will go wrong whilst they’re off, the guilt about leaving colleagues short-staffed, and the inability to truly disconnect.

The numbers are concerning. Research shows that UK employees worry about their workload when taking annual leave. Half check their work emails “sometimes” during time off, with over a quarter doing so “often”. For many workers, the line between work and personal time has become dangerously blurred.

Why do employees experience absence anxiety?

Understanding the root causes helps HR professionals address the issue effectively.

The high performer paradox

Ironically, absence anxiety often affects your most committed employees. Those who care deeply about their work struggle most with taking time off. People managers and senior staff report particularly high anxiety about what might happen in their absence - projects stalling, crises emerging, or colleagues being overburdened.

Organisational culture matters

Your workplace culture plays a significant role. In many SMEs, lean staffing and an “always on” mentality can inadvertently discourage people from taking leave. When long hours are praised and working through illness is normalised, employees absorb the message that being absent reflects poorly on commitment.

Research shows that 64% of SME employees in the UK feel guilty about taking a holiday. That’s nearly two-thirds of your workforce feeling bad about using their legal entitlement to rest.

Financial pressures

For many in-person workers, the pressure of lost income is a significant barrier to staying home: many report going into work while unwell because they cannot afford the financial hit.

Signs of absence anxiety in UK employees

Absence anxiety manifests through several observable behaviours:

Presenteeism - Employees coming in or logging on despite being sick. 65% of UK organisations report observing this.

Constant connectivity - People checking emails frequently during leave, responding to messages, and making themselves available “just in case”.

Worry and guilt - Even when taking time off, employees spend it ruminating about work, imagining worst-case scenarios, and feeling guilty about burdening teammates

Working during holidays - In extreme cases, people actually work during annual leave. This “leaveism” has been observed in 63% of organisations.

The impact of absence anxiety on SME productivity and wellbeing

The consequences extend well beyond individual employees.

How absence anxiety reduces productivity

An exhausted or unwell employee isn’t operating at full capacity. They work more slowly, make more errors, and take longer to recover. In team environments, one person coming in with flu can result in multiple team members falling ill.

Employee burnout and mental health concerns

When employees never truly rest, burnout becomes almost inevitable. The Burnout Report 2025  from Mental Health UK found that one in three adults experienced high or extreme levels of stress “always” or “often” over the past year, a clear warning that sustained pressure takes its toll.
Meanwhile, poor mental health continues to be a major source of absence: about one in five workers said they needed time off due to stress or deteriorating mental health in the past year.

Staff retention and absence anxiety

When people feel their job is harming their health, they become disengaged and start considering other opportunities. For SME owners, losing a valued team member to burnout or stress-related resignation is particularly costly.

How to create a healthy leave culture in SMEs

Addressing absence anxiety requires cultural change, and leaders to set the tone.

Lead by example

If you’re in a leadership position, your behaviour sets the standard. When leaders take their holidays and genuinely disconnect, it sends a powerful message. On the other hand, if managers never take time off or constantly check emails during leave, employees see this as the expected norm.

Communicate clearly

Ensure all employees understand their leave entitlements and know that using them is both normal and supported. Make it clear that taking time off for health or rest is a positive action, not something to feel guilty about. Praise good results rather than long hours.

Encourage regular breaks

Rather than letting employees hoard holiday days until year-end, encourage them to spread leave throughout the year. If someone hasn’t booked any holiday in several months, it’s worth having a conversation to encourage them to disconnect.

Plan for coverage

One reason employees feel anxious is the genuine concern that work won’t get done. Address this by cross-training team members, creating delegation plans, and using a leave calendar so the team can prepare for absences. When people know the work will be handled, they can actually relax.

Practical employer solutions for managing absence anxiety

Develop clear policies

Create a comprehensive leave policy  that’s easy to understand. Make it explicit that taking time off is encouraged. Ensure everyone knows their entitlements.

Monitor and intervene proactively

Use an absence tracking system to log all leave. Watch for employees with unusually low absence rates or unused holiday. Have supportive conversations with those who may be at risk of burnout. Don’t wait for a crisis - intervene early.

Support recovery properly

When someone returns from sick leave, conduct a supportive check-in. Ask about their wellbeing and whether they need any support. Reassure them it was right to take time off to recover.

Use HR tools effectively

Absence management software provides visibility into patterns, prompts important conversations, tracks entitlements clearly, and enables better planning. Nearly 47% of SME employers say they invest in employee health benefits primarily to manage sickness absence costs and support staff in returning to work healthier.

Moving forward

Absence anxiety is a real issue for many UK SMEs, often arising from employees’ dedication and commitment but ultimately harming wellbeing and productivity if left unaddressed. By fostering a culture that encourages switching off and implementing fair, transparent tools for tracking and planning absences, employers can ease uncertainty and stress.

Over time, these steps promote healthier work-life balance, ensuring employees take necessary breaks and return recharged benefiting both individual wellbeing and overall business performance.

Help your team take the breaks they deserve without the stress of uncertainty.
Explore how our HR software makes absence management simple, transparent, and fair so everyone can switch off with confidence.

Absence anxiety FAQs

How can I tell if absence anxiety is affecting my team?

Look for employees never taking sick days even when obviously unwell, unused holiday building up, emails sent during evenings and weekends, and staff checking in whilst on leave.

What if my business genuinely can’t function with someone off?

This points to a business design issue rather than validating absence anxiety. If your operation can’t withstand a single person taking a week’s holiday, you need better processes, cross-training, documentation and contingency planning.

How should managers handle employees who won’t take leave?

Have a direct conversation expressing concern for their wellbeing. If they’re worried about workload, help them plan coverage. In some cases, you may need to require them to book time off.

What’s the minimum employees should be taking?

All of their legal entitlement - at least 28 days including bank holidays. Ideally, leave should be spread throughout the year. Regular shorter breaks often provide better recovery than one long holiday.

How can technology help?

Absence management software provides visibility into patterns, prompts important conversations, tracks entitlements clearly, enables better planning and provides data to inform decisions.

What about mental health support?

Consider what mental health resources you can provide, whether that’s an Employee Assistance Programme, mental health training for managers, or simply creating an environment where people feel comfortable discussing wellbeing concerns.