How can employers prevent a predicted ‘economic crisis’ by supporting the return to work?

With 800,000 more people out of work due to health conditions than in 2019, former John Lewis boss Sir Charlie Mayfield believes the UK could be on the brink of an economic crisis driven by inactivity.

The latest report, commissioned by the Department for Work and Pensions has revealed the true cost of the number of sick and disabled people currently out of work in the UK.

Costing employers an estimated £85bn per year to cover loss of productivity and sick pay. Meanwhile the state is reported to spend £212bn to cover welfare costs, loss of output and “burdens on the NHS”. Economic inactivity affects both businesses and the economy.

A nation struggling to stay in work

The number of working-age people leaving the labour market due to sickness continues to grow. Mental health conditions are rising sharply among younger workers, while musculoskeletal issues, such as chronic pain, back problems, and joint strain are increasingly affecting older employees.

The trend shows no sign of slowing. Without intervention, Britain risks losing even more of its skilled workforce, creating further labour shortages and long-term economic impacts. In fact, Sir Mayfield estimates 600,000 more people could leave work for the same reasons over the next decade.

So, what can be done?

Businesses must take proactive steps to support their people. Both those currently in work and those who are absent due to health reasons.

That means investing in effective return-to-work processes to help employees return safely and sustainably, while also implementing early intervention strategies to prevent others from leaving the workforce in the first place.

Ways to support staff include investing into occupational health support with the likes of an EAP, workplace adjustments, and mental health first aid training for managers and team members alike. These initiatives not only create a healthier workforce but ensure employees feel supported, fostering a healthier and happier workplace culture.

As we face this growing economic challenge, employers must take an active role in supporting their people’s return to work. By implementing workplace adjustments and effective return-to-work processes, businesses can not only help employees re-engage but also strengthen retention of their top talent.

Taking action with the right tools

Supporting employees requires the right approach, systems, tools and data. Helping to turn wellbeing strategies into workplace processes. This is where HR software comes into action.

With a system like BrightHR, businesses across the UK can implement effective wellbeing support and return-to-work policies and procedures. Taking a powerful approach to support employees and prevent the wider economic crisis Sir Charlie Mayfield warns of.